Business Business

25/11/2021 - 21:05

Chan May - Lang Co Economic Zone:

No attracting investment at all costs

Developing Chan May - Lang Co Economic Zone (EZ) towards a sustainable way, completing the construction of this economic zone into a grade III urban center by 2025 is one of the province's essential goals.

Visitors come to Hue via Chan May Port (Photo taken before the outbreak of COVID-19). Photo: DUC QUANG

Investment transformation

Being one of the focal points creating a highlight in socio-economic as well as urban development, Chan May - Lang Co EZ, together with An Van Duong new urban area, are becoming attractive destinations for many investors.

With advantages including a large investment space, a planned area of ​​27,108 hectares, the strength of a port area, an important sea traffic hub, and providing deep-water port services and cargo coordination in the central key economic region, Chan May - Lang Co EZ is directed to build a grade III urban center with the focused development including clean industries and high-tech industries.

In addition to the advantage of location, this area also has merits in planning. when the general planning and zoning plans were drawn up, detailed construction planning for each area was prepared and approved.

Currently, the total planning area has been approved. Specifically, the area in planning accounts for 78% of the land being suitable for construction; meanwhile, the remaining area (22%) is for ecological green area, landscape protection area, protection forest, green land isolating national roads, and high voltage power line roads.

The balance in the construction area and green landscape will create a friendly green environment for the site. The province encourages each investment project to invest in interleaved green areas to create verdant space for each area.

The economic zone's infrastructure is also considered being invested, meeting the daily needs of the citizens and serving investment projects, especially traffic infrastructure, electricity supply, water supply, telecommunications, wastewater collection and treatment systems, and solid waste landfills.

With these advantages, Chan May - Lang Co EZ is becoming the destination of many investors. In the period 2006 - 2021, this economic zone has attracted 72 investment projects, with a total registered capital of 97,333 billion VND with many big investors such as Banyan tree Group, Saigon Investment Group, Vietnam Oil and Gas Group, SunGroup, etc., creating jobs for more than 4,600 workers (accounting for 10.2% of the population in the area), and submitting 2,200 billion VND to the State budget.

No attracting investment at all costs

Although the number of attractive projects is relatively high, the number of valid projects is currently only 50 projects, with a total registered capital of more than 82,000 billion VND. The total implemented capital is only 13,000 billion VND, accounting for nearly 17% of the total project, and the remaining projects are still on paper.

According to the data from the Department of Planning and Investment, through the process of monitoring and supervision, the department has advised terminating 66 projects, mainly the ones violating the implementation schedule for a long time or terminated the operation by the investors being not able to conduct the project, with a total investment of nearly 18,682 billion VND. Among these, the projects in the province's economic and industrial zones are 29 projects.

Prioritizing investment in seaport infrastructure system. Photo: HOANG LOAN

The investment projects are being slowly implemented, and the rate of project recovery in this area is relatively high mainly because when proposing investment projects, investors do not fully understand the process and procedures in the process of project implementation; so, the proposed project schedule is not appropriate. As a result, many projects are behind schedule, having to adjust or delay the project implementation many times. Besides, some investors do not have enough experience and implementation capacity compared to the proposed project.

In the two years 2020-2021, the complicated developments of the pandemic have affected the progress and implementation of investment projects, especially in the procurement of machinery as well as the ability to access loans due to the economic depression.

The province has established a special working group to remove difficulties in implementing key projects, conduct the examination with its own mechanism for mobilizing resources for site clearance and create a clean land fund to attract large-scale projects bearing motivation nature. Besides, there should be a mechanism to exploit the land fund in the areas where the detailed planning has been approved, ensuring that it is in accordance with the provisions of law to generate revenue for reinvestment in infrastructure.

Mr. Nguyen Dai Vui, Director of the Department of Planning and Investment, affirmed that the province's viewpoint in promoting and attracting investment, especially big partners and strategic investors, is "no attracting investment at all costs, limiting projects with risks of affecting the environment, giving priority to projects of large investors and high-tech projects."

Therefore, the inspection and monitoring of land use efficiency and handling of projects that are behind schedule or stop working in the economic zone in particular and the whole province in general, have been strengthened.

In addition, the province has also built and well implemented the investment promotion program. Specifically, priority is given to attract foreign investment in modern, high-tech, and clean industries that cause less environmental pollution and create great added value of products; use resources economically and efficiently; and to projects associated with development research and technology transfer toward environmental protection and sustainable development. The province also focuses on investment projects in seaport infrastructure, industrial park infrastructure, non-tariff zone, Chan May urban area infrastructure, high-tech park, etc., creating infrastructure synchronization for Chan May - Lang Co EZ.

To create a stepping-stone in attracting investment, the province has been implementing many solutions to attract investors. In addition to the mechanisms and policies to attract investment according to the Central regulations on corporate income tax, import tax, exemption from land rent and water surface rent, the province has issued many policies to support enterprises in infrastructure investment inside and outside the project, in site clearance and demining, and in support for training labor, etc.