IC development challenges Dong Nai Province
(VEN) - Under the plan, the southeastern province of Dong Nai will have 27 industrial clusters (ICs) with a total area of almost 1,500 hectares in the 2021-2025 period. However, only four of the 27 ICs have had their infrastructure projects accomplished as of the end of 2023, while the rest are still under investment procedure handling and site clearance.
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| Although it has had necessary infrastructure projects, Thien Tan Industrial Cluster in Dong Nai Province’s Vinh Cuu District has attracted no businesses - photo: Ngoc Lien |
Although it is strong at industrial and handicraft development, Dong Nai Province is facing the shortages of standard industrial land.
Dong Nai set a target of seeing all planned industrial clusters in the province to be founded until 2025, all province-based operational ICs to have standard central wastewater treatment systems and reach an occupancy rate of 60 and 70 percent in 2025 and the 2026-2030 period, respectively.
According to the Dong Nai Provincial Department of Industry and Trade, although it has adopted IC development policies, Dong Nai is facing difficulties in attracting secondary investment projects in IC infrastructure development, as investors in the field have encountered financial difficulties. Meanwhile, some IC investors in the province are facing problems related to the difference between land areas stated in their investment certificates and foundation decisions, as well as land auction, transportation infrastructure, and wastewater treatment and water supply system construction, among others.
According to the department, Dong Nai has raised the maximum support level for each IC infrastructure investment project to VND50 billion to provide a greater incentive for investors.
The department expects that Government Decree 32/2024/ND-CP on IC management and development, taking effect from May 1, 2024, will help ease policy obstacles and attract investment in IC infrastructure development.
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