VietNamNet Bridge – For the first time in the country, an existing environmentally unfriendly industrial zone will be demolished and developed into a modern urban area in the southern province of Dong Nai.

The project to transform the Bien Hoa 1 Industrial Zone, which was built in 1963, has been approved by the Government.

The project is set to begin implementation next year.

The General Corporation for the Development of Industrial Zones (Sonadezi), the project developer, has said the urban area will comprise two sections – commercial and residential.

The commercial section will be a trading, financial and services complex, including banks, luxury hotels and offices for local and multinational companies.

High-end apartment buildings, office buildings, restaurants, supermarkets, swimming pools, tennis courts and universities will be part of the residential section. The three-phase project with a total estimated investment capital of VND12.66 trillion (US$633 million) would be completed by 2022, according to the provincial People's Committee.

Dinh Quoc Thai, vice-chairman of the committee, said the main reason for developing this project was that the current industrial zone was not meeting environment protection standards. Wastewater discharged from the zone into the Dong Nai River, which supplies water for over 10 million residents in the province and HCM City, is poorly treated or not treated at all, according to Dong Nai Province's Department of Natural Resources and Environment.

This has resulted in the water containing pollutants 10 to 100 times the accepted level.

The local government is aware that this is a huge project that would affect a number of businesses currently operating in the industrial zone, said Dinh Quoc Thai, vice chairman of the province People's Committee.

Therefore, the province has set up a steering committee to develop the project and help businesses in moving to newer industrial zones, he said.

More than 100 businesses, of which 96 are currently operating at the Bien Hoa 1 Industrial Zone, will be asked to move to the 500-ha Giang Dien Industrial Zone, invested in by Sonadezi, in the province's Trang Bom District.

The option of moving to other industrial zones in the province is also contained in the plan.

Nguyen Thi Thu Hang, chairwoman of Sonadezi's board of directors, said all relocating businesses would be financially supported with land rentals as well as fees for using infrastructure at new industrial zones.

Thai said the province has also asked the Government, including relevant ministries and sectors, to create the most favourable conditions and provide incentive policies for businesses moving to the new industrial zones.

The project steering committee is currently working with businesses in the industrial zone to resolve all issues regarding their relocation. The committee will consider all concerns and ideas mentioned by businesses prior to developing the project, Thai said.

The 335-ha Bien Hoa 1 Industrial Zone is the country's first industrial zone. It was built in 1963 in Bien Hoa City.

VietNamNet/Viet Nam News