VietNamNet Bridge – Over 700 projects in local industrial parks (IPs) have seen investment licenses withdrawn or halted operations due to financial problems, according to results of an inspection into IPs and economic zones (EZs) announced by the government website chinhphu.vn.

Of the figure, 161 projects have seen investment licenses revoked with the total invested capital of nearly VND4.8 trillion and US$260 million and 203 projects have halted operations worth nearly VND5.2 trillion and US$386 million, according to the report conducted by the National Steering Committee for the Development of IPs and EZs.

In addition, 343 projects could not be developed due to financial problems. The total number of projects accounted for around 10% of the total number of IP and EZ projects.

Currently, in the nation’s development master plan, 31 IPs have been part of the area developed while the entire area of the other 176 IPs, mostly in the Red River Delta, has not been developed.

After the Government decided to eliminate seven IPs out the master plan, local authorities have proposed canceling 25 more IPs with the total area of over 5,100 hectares in 13 provinces and cities as they have been located near rice growing land or central city areas.

Meanwhile, local authorities have suggested adding 51 IPs into the master plan, covering 18,500 hectares in 20 provinces and cities. IPs have also sought approval to revise areas, of which 10 IPs have asked to expand their area by nearly 2,000 hectares while 26 IPs have proposed to revise down their total area by nearly 2,800 hectares.

In the near future, the results will be submitted to the Government as the foundation to adjust IP development plans in each locality.

Members of the steering committee have also given suggestions for incentives and policies for IPs and EZs, focusing on tax, land and investment incentives for industrial clusters and high-technology issues.

Speaking at the meeting evaluating the situation of IPs and EZs, Deputy Prime Minister Hoang Trung Hai, head of the National Steering Committee for the Development of IPs and EZs, said that the results will be a foundation for development of industrial clusters. The report will also help local authorities to deal with specific difficulties in planning, environment, land and investment incentives of each project.

However, Hai warned of low occupancy ratios in IPs and ineffective management model and inspection. The steering committee was told to make a deeper evaluation of IPs and EZs and suggest solutions before submitting reports to the Government in the future.

Hai also asked the ministries of Planning and Investment, Industry and Trade and Construction to join hands with local governments in punishing violations and speeding up slow projects.

Source: SGT