IPs in HCM City nearly full

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The existing industrial parks (IPs) in HCMC are nearly full as land available for lease is being exhausted, hindering the city’s industrial production expansion, according to the HCMC Export Processing and Industrial Zones Authority (HEPZA).

IPs in HCM City nearly full
A view of an industrial park in HCM City. – SGT Photo: Le Hoang

In a report on the performance of the export processing and industrial zones in HCMC in 2021 and their plans for 2022, HEPZA said new IP projects are behind schedule while the existing IPs are almost fully occupied.

Projects to develop Le Minh Xuan 2 IP and expand the Le Minh Xuan, Vinh Loc and Tay Bac Cu Chi IPs have been moving at a snail’s pace due to obstacles in site clearance, the land handover and legalities.

In addition, some IP projects have been planned but have yet to be established, including the Vinh Loc 3 IP project and the third phase of the Hiep Phuoc IP project.

Investors of the Dong Nam and Tan Phu Trung IP projects have yet to get approval, so IP infrastructure developers have yet to clear the sites for IP projects, hand over the sites for resettlement areas or develop infrastructure facilities to serve workers and experts working at IPs.

Earlier, a HEPZA representative had expressed concern over possible challenges caused by the shortage of land at IPs and the Covid-19 pandemic, impeding the investment attraction.

Therefore, HEPZA set a target to attract US$500 million in investment in the industrial and export processing zones in HCMC this year, US$100 million lower than the investment in 2021.

In the future, HEPZA will provide legal consulting for the Pham Van Hai IP so that it can be put into operation.

To reach these targets, HEPZA will focus on improving the investment quality and efficiency, enhancing the pandemic response, strengthening the support for enterprises and reforming procedures, said HEPZA Chairman Hua Quoc Trung.

The 668-hectare Pham Van Hai IP will be established after the prime minister adds it to HCMC’s IP planning. HEPZA will also coordinate with districts, departments and agencies to speed up the compensation and completion of legal procedures to implement projects to develop the Le Minh Xuan 2 and Vinh Loc 3 IPs and the third phase of the Hiep Phuoc IP and extend the Le Minh Xuan, Vinh Loc and Tay Bac Cu Chi IPs.

The authority will also coordinate with departments and agencies to set up criteria for investments in IPs and export processing zones and further support enterprises to resume their production and business after the pandemic.

Additionally, HEPZA will supervise the investors’ use of land and take back the land lots of delayed projects.

Source: SGT

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