Wednesday, August 29, 2007

Vietnam agrees to 2 more industrial parks in Vung Tau

PM agrees to more IPs in Ba Ria-Vung Tau
14:40' 28/08/2007 (GMT+7)

VietNamNet Bridge – Prime Minister Nguyen Tan Dung last week gave approval in principle for developing two new industrial parks and expanding an existing one in the southern coastal province of Ba Ria-Vung Tau.

The three industrial parks (IPs) are Phu My III (800ha), Dat Do (500ha) and the expanded Phu My II (by an additional 400ha).

The Prime Minister also agreed to add the new IPs to the list of industrial parks to be developed between now and 2015. The projects are part of a plan to develop new IPs in the province, which is now home to nine IPs.

Previously, the coastal province has plans to set up six new IPs as well as to expand Phu My II IP to accommodate new tenants now that existing industrial estates there have been nearly full.

The six new IPs on the tentative list are Phu My III, Chau Duc, Long Son, Dat Do, Kim Dinh and Cai Mep Ha.

Since Dong Xuyen Industrial Park was born in 1996 as the first industrial park, the province has set up eight more IPs with a total area of nearly 35,390ha. Several of these parks are now full including Dong Xuyen and Phu My I, while other IPs have enjoyed 80% occupancy.

Operational industrial parks have so far attracted 140 projects with total investment capital of some US$6.7bil. Among them, 70 are foreign-invested projects with pledged capital of US$4.3biln and the rest are local ones capitalized at US$2.45bil.

In 2006, IPs in the province attracted 12 fresh foreign investment projects worth nearly US$1.36bil, making the province the top destination for investment last year with US$2.26bil in committed investment.

Many investors prefer Ba Ria-Vung Tau as an ideal place for heavy-industry projects thanks to its location and the availability of many ports.

In the first eight months of this year Vietnam attracted about US$8.3bil in fresh FDI inflow. Ba Ria-Vung Tau Province alone attracted about US$1.07bil in the January-July period and thus maintained its leading position.

The province hopes that it will be able to attract US$2.5 to US$3bil in FDI inflow this year.

Therefore, the establishment of more IPs is becoming more urgent if the province is to be able to receive more investors, according to experts.