Many major corporations have responded with interest to Hau Giang province’s plan that envisages the construction of seven industrial parks covering 1,741 hectares by 2030.
Kinhbac City Development Holding Corporation based in the northern province of Bac Ninh, Hai Phong-based Shinec JSC and four Hanoi-based firms – Sao Mai Group, TNG Holdings, Stavian Industrial Park JSC and Phu Thai Holdings Group are among those that have expressed interest, says Dong Van Thanh, Chairman of the Mekong Delta province.
He welcomed their interest, saying their financial strength and experience in building industrial parks will facilitate smooth implementation of projects and attract investments, contributing to the province’s socioeconomic growth.
Hau Giang houses just two industrial parks covering 492 hectares at present. These two have attracted 77 investments, 54 are operational, recording a combined occupancy of 93.32%. The 291-hectare phase 1 of Song Hau Industrial Park has an occupancy ratio of 100%, while that of the 201-hectare phase 1 of Tan Phu Thanh Industrial Park is 86%, Thanh said.
With its new plan, Hau Giang will increase the total area of industrial parks to 2,233 hectares, focused on Chau Thanh, Chau Thanh A and Phung Hiep districts.
The province targets to approve the plan this month and hand over land in May 2024 to investors for constructing the 120-hectare Dong Phu 2 Industrial Park and the 380-hectare Song Hau 2 Industrial Park. These two facilities were added into the provincial plan for industrial parks by the Prime Minister in April.
Hau Giang is also awaiting the PM’s approval for its 2021-2030 masterplan this August before proceeding with steps to advance the Tan Hoa Industrial Park.
Investor criteria
The province has several criteria for selecting investors as IP developers.
The first is that an investor’s equity must be at least 15% of the project’s investment. The second is that the investor must have deployed at least one project with an occupancy ratio of at least 60% in industrial hubs of Binh Duong, Vung Tau, Dong Nai or Ho Chi Minh City in the south; Bac Ninh, Bac Giang, Quang Ninh, Hai Phong and Hanoi in the north; or Danang in the central region.
The province wants the new industrial parks to attract hi-tech, eco-friendly projects as well as projects in “suitable” sectors including logistics, electronics, electrical items, energy-saving products, agricultural machinery, food processing, animal and fish feed, wood products and furniture, beverages, construction materials and automobiles.
Businesses occupying the industrial parks should also meet several criteria including having equity equivalent to at least 20% of projects’ investments for those that cover less than 20 hectares; 15% for areas more than 20 hectares; capacity to make annual contributions of VND10 billion ($423,000) per hectare to the provincial budget after tax incentives expire; and utilization of eco-friendly methods, advanced technology and a skilled workforce.
In the first half of 2023, Vietnam’s economy expanded by 3.72% year-on-year, the General Statistics Office (GSO) said. Hau Giang outpaced the national average with a gross regional domestic product (GRDP) growth of 14.21%, the highest in the country.
Vietnam’s index of industrial production (IIP) showed signs of recovery with a year-on-year growth of 2.8% in June, but fell 1.2% year-on-year in the first six months of this year. Hau Giang outperformed in this regard, too, with a 13% year-on-year increase in the first half.