Silence at Thuong Son Industrial Cluster...

High expectations

The Thuong Son Industrial Cluster, located in the Dong Eo area (hamlets 11 and 12) of Thuong Son commune (Do Luong district), has been established and added to the planning by a decision of the Provincial People's Committee.Developing industrial clusters in Nghe An province.In 2020, Decision No. 2655/QD-UBND dated June 25, 2015, approved the industrial cluster with a scale of 8.4 hectares. On October 8, 2015, the Provincial People's Committee also issued a decision approving the detailed 1/500 scale plan for this industrial cluster. The construction of this industrial cluster is expected to be a concentrated production area, meeting the investment needs of businesses in the district as well as attracting domestic investment.

Following the approval of the detailed planning, the People's Committee of Do Luong District proceeded with the construction of infrastructure, including the planned road leading to the Thuong Son Industrial Cluster. However, attracting investment and implementing the remaining sub-zones of this industrial cluster has faced many difficulties.

Visiting the planned construction site of the Thuong Son Industrial Cluster recently, we observed that the area only has access roads; there are no factories or production facilities yet. The functional zones are also just empty plots of land. In the center is an area still covered with production forest belonging to local residents.

Mr. Thanh Dang Long, Chairman of the People's Committee of Thuong Son commune, said: "Completing the Thuong Son Industrial Cluster is absolutely necessary and in line with the district's overall planning. However, the construction and completion of the technical infrastructure are not yet finished. In recent years, efforts to attract investment here have been made, but not as expected."

According to the Do Luong District regional development plan for the period 2021-2030, with a vision to 2050, the Thuong Son Industrial Cluster will prioritize footwear and garment projects. Since 2015, the detailed plan has also divided this industrial cluster into separate zones. Zone A is for administration and public services; Zone B is planned for timber processing; and Zone C is planned for garment manufacturing facilities. In addition, there are areas for wastewater treatment, green spaces, perimeter roads, etc.

Regarding attracting investment to the Thuong Son Industrial Cluster, in 2017, An Trach Son Co., Ltd. explored and invested in a high-tech clay roofing tile manufacturing plant project. This generated great enthusiasm among local residents, as the project promised to create many jobs and reduce the need for local youth to seek employment elsewhere. By 2020, the Provincial People's Committee had issued a decision approving the investment plan for the project, and the Provincial People's Council had also issued a resolution to change the land use purpose of 0.80 hectares of production forest in the area for the investor to implement the project.

However, after a long period, this unit still did not carry out the necessary procedures to proceed with investment, construction, and project implementation. Therefore, on September 12, 2023, based on the review report of inter-agency teams, the Provincial People's Committee issued Decision No. 2842/QD.UBND approving the results of the 2022 inter-agency inspection of investment projects in Nghe An province (phase 2). This decision terminated the operations and revoked the relevant legal documents for 7 projects throughout the province. Among them was the High-Tech Clay Roof Tile Manufacturing Plant project of An Trach Son Co., Ltd. in Thuong Son Industrial Cluster.

Mr. Thanh Dang Long also added that after the High-Tech Clay Roofing Tile Manufacturing Plant project was revoked, the local authorities hope to attract dedicated investors to build a facility there, contributing to job creation and promoting the socio-economic development of the locality.

According to our findings, to continue the construction of the Thuong Son Industrial Cluster, on September 23, 2022, the Provincial People's Committee approved the economic and technical report for the construction of the Thuong Son Industrial Cluster's infrastructure with a total investment of over 14.6 billion VND, of which the provincial budget will support no more than 7.1 billion VND and the remaining amount will be allocated by the Do Luong district budget. The implementation period was until 2023. However, in September 2023, the Provincial People's Committee issued a decision to adjust the implementation time of this industrial cluster's infrastructure construction project to June 30, 2024.

Difficulties in attracting investment

Besides the Thượng Sơn Industrial Cluster, which is currently under construction, there are two other operational industrial clusters in Đô Lương district (the 7.7-hectare Town Industrial Cluster and the 72.9-hectare Lạc Sơn Industrial Cluster). However, according to the Nghệ An Provincial Industrial Cluster Development Plan, integrated into the provincial planning approved by the competent authority, in the future, Đô Lương will only have two industrial clusters in Thượng Sơn and Lạc Sơn communes. The Town Industrial Cluster has been removed from the plan and relocated to the Lạc Sơn Industrial Cluster. Additionally, there is Industrial Zone No. 5, part of the planned expansion of the Southeast Economic Zone, covering approximately 1,850 hectares in the lower communes of the district.

Regarding the construction of the Thuong Son Industrial Cluster, Mr. Nguyen Trung Thanh – Vice Chairman of the People's Committee of Do Luong District – stated: Currently, the project to build technical infrastructure at the Thuong Son Industrial Cluster has been approved and is being implemented. The district has also instructed the contractor to expedite the process to attract investment as soon as possible. In fact, several investors have come to inquire and propose investment projects. After reviewing and assessing the feasibility, the district has guided some projects to proceed with the next steps, while simultaneously rejecting some projects that pose a risk of environmental pollution.

It is known that on August 8, 2018, after a period of implementation, realizing that the 8.4-hectare area was no longer suitable for the needs of investors, especially foreign investors who wanted to invest in a chain of businesses in many fields with a large area, the People's Committee of Do Luong District submitted Proposal No. 248/TT-UBND.KTHT to the Provincial People's Committee requesting approval to adjust the area of ​​Thuong Son Industrial Cluster to approximately 40.4 hectares. However, to date, the Provincial People's Committee has not yet made a decision to approve it.

Mr. Thanh also shared that, due to the difficulties in attracting investment at this time, many businesses have been affected by the economic downturn after the Covid-19 pandemic, thus limiting their ability to implement investment projects. Not to mention, the competition to attract investment among localities within the province as well as with other provinces has become fierce.

"Therefore, the district's goal now is to complete the infrastructure to fill the Thuong Son Industrial Cluster as soon as possible, and then gradually propose to the Provincial People's Committee to expand its scale," Mr. Thanh emphasized.