With a transparent mechanism and appropriate incentives, ensuring mutual benefits, industrial parks in the southern province of Tien Giang have created impression on and attraction to investors. This can be proved by the initial achievements in My Tho Industrial Park, the first IP of the province.Construction of My Tho Industrial Park was officially launched in mid-September 1998 on an area of 79 hectares.
As it is the first industrial park being built in the province, local authorities were still at a loss as they did not have any experiences, let alone their shortage of capital. There was not an appropriate mechanism to attract investors. As a result, three years later the park attracted only two projects.
It was until October 2001 when the provincial People’s Committee issued Decision 45 on investment incentives and encouragement to My Tho IP that the park has created a strong attraction to investors.
Under Decision 45, administrative procedures have been streamlined remarkably to create the most conveniences in a short period of time for investors. Land rents were reduced and even abolished during the basic construction period.
Thus, since 2001, My Tho IP has attracted 19 more projects, bringing the total projects licensed to the park to 21 with a total registered investment capital of over US $87 million and VND 273 billion. These projects have leased 57.43 hectares, or 93% of land in the park.
On the basis of the achievements of the My Tho IP, in 2002 Tien Giang authorities decided to expand the 17-hectare Trung An Industrial Complex. So far, this complex has been fully-leased, attracting 12 projects with a total investment capital of US $3.45 million and VND 144 billion.
The My Tho IP has helped create more jobs for local people, increase export turnover and contribute more to the budget. My Tho IP’s industrial production value has kept increasing since 2001.
Last year, total industrial production value of businesses in My Tho IP and Trung An Industrial Complex reached nearly VND 800 billion, accounting for 37% of the province’s industrial production value and up over 25% against the same period of the previous year. Of this figure, US $15.22 million came from exports, nearly four times higher against 2003. These businesses contributed US $4.3 million and VND 8.5 billion to the budget and created 5,800 stable jobs for labourers.
Along with the efforts in creating a transparent mechanism, in 2004 Tien Giang authorities regularly organised meetings and conferences for businesses to meet provincial leaders and functional agencies to speak out their difficulties for solutions. Thus, businesses feel secured to pour more investments and expand production.
The Hung Vuong Company Ltd has poured VND 38 billion more for the second phase, bringing their total investment capital to VND 65 billion. Their processing capacity has been increased by 2.5 fold. The company has processed 5,000 tonnes of filet of tra fish for exports and created stable jobs for 500 workers.
The Badavina Company Ltd, the MSA-Nha Be Joint Venture both also increased investment capital.
After the success of My Tho IP and Trung An Industrial Complex, Tien Giang is currently building infrastructure facilities for another IP, the 204 hectare-Tan Huong IP.
The province also pays attention to train skilled workers in order to meet the demand for labour force of businesses. Currently, Tien Giang has a Provincial Vocational Training School and the newly-established Tien Giang University. Local authorities said they would build two more vocational training centres in Cai Lay district and Go Cong town to train workers.
With investment incentives and transparent mechanism, Tien Giang has created a favourable investment environment to attract investors.
Nhan Dan - (29/09/2005)
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