Southeast Economic Zone and its role as a driving force and locomotive

Efforts to mobilize investment resources

VSIP Nghe An 1 Industrial Park infrastructure in Hung Nguyen meets green, clean, and modern criteria with annual land rental prices ranging from 55-65 USD/m2. Photo: Nguyen Hai

Representative of the Southeast Economic Zone Management Board said: We don't have to wait until there isResolution 26-NQ/TW2013 on the direction and tasks of developing Nghe An province until 2020, since its establishment (2007), Nghe An has set the goal of building the Economic Zone to become a driving force and locomotive, contributing to making the province soon become an industrial province and the most prosperous province in the North. Therefore, along with the issuance of leadership documents, directing the institutionalization of the goals of Resolution 26 into reality, Nghe An has devoted its efforts and invested a lot of resources in developing industrial parks in this economic zone.

In the past 9 years, the state budget is 1,636,621 billion VND (of which the central budget is 1,183,610 billion VND, the local budget is 453,011 billion VND); the source mobilized from enterprises and investors in industrial park infrastructure to build seaports, water supply, waste treatment and workers' housing is about 11,828 billion VND, estimated to reach 6,482 billion VND by December 31, 2021; other investment capital (ODA, PPP) is about 33.67 billion VND, the investment capital for phase 1 is 19.68 billion VND.

After 22/34 enterprises registered to invest and start operating, VSIP Nghe An Industrial Park still lacks about 4,000 workers. In the photo: Job consultation day in mid-June 2022 organized by VSIP Nghe An Industrial Park in coordination with the Management Board of Dong Nam Economic Zone. Photo: Nguyen Hai

In the period of 2013-2021, the Southeast Economic Zone and industrial parks attracted 184 projects, with a total registered investment capital of VND 70,235.7 billion, structured into industries including 24 projects in mechanics, electronics, and information technology; 22 projects in agricultural, forestry, and seafood processing; 02 projects in automobile and auto parts manufacturing; 01 project in pharmaceuticals; and 134 projects in other industries and occupations.

In particular, since 2015, the province has attracted investors to do business in industrial park infrastructure such as V.SIP, WHA, Hoang Thinh Dat to meet the demand for clean land, synchronous and modern infrastructure to attract investment. In the past 3 years, in response to the shift in investment waves in the world, the Southeast Economic Zone has attracted 04 technology corporations in the global value chain to invest and do business, namely Luxshare - TCT, Everwin, Goertek, JuTeng; gradually forming a center for manufacturing electronic equipment and high-tech equipment in the North Central region and the Central coastal region.

By 2021, a number of major projects will come into operation, contributing to economic restructuring, creating many jobs, and making significant contributions to the province's budget revenue such as:Hoa Sen Nghe An Steel Factory, Masan MB Food Industry Center, Nghia Dan MDF Wood Factory, DKC Petroleum Warehouse and Port, Vissai Cement Grinding Station and Port, Cua Lo Port Terminal No. 5, Luxshare-ICT Electronic Equipment Factory, Frescol-Tuna Canned Fish Factory...

Along with dredging the waterway, Nghe An is urgently investing in additional yards No. 5 and No. 6, contributing to improving the cargo handling capacity at Cua Lo port. Photo: Nguyen Hai

OutsideBac Vinh Industrial ParkPreviously invested by Bac Vinh Industrial Park Development Investment Company under Lilama, since 2013, the province has attracted 3 more large industrial infrastructure investors, VSIP, WHA, Hoang Mai 1, to invest in industrial park and urban area infrastructure with a total area of ​​1,512.77 hectares.

After nearly 10 years of implementing Resolution 26, the Southeast Economic Zone and industrial parks of Nghe An province have achieved positive results, gradually affirming their position and role as a driving force in attracting investment and developing the province's economy. Up to now, the programs, plans and projects assigned to implement Resolution 26-NQ/TW, Notice No. 55-TB/TW of the Politburo and the Resolutions of the 17th and 18th Provincial Party Congresses have been basically completed, focusing on adding the boundaries of VSIP, Hoang Mai and Dong Hoi industrial parks to the Southeast Economic Zone and building a number of mechanisms and policies for the development of the Southeast Economic Zone and industrial parks.

Mr. Le Tien Tri - Head of the Southeast Economic Zone Management Board shared

Thanks to the above large resources, the essential infrastructure of the Industrial Parks in the Economic Zone is increasingly complete. Currently, industrial parks such as VSIP in Hung Nguyen, WHA Industrial Park Nghe An 1, Hoang Mai 1 Industrial Park have been completed, investors are actively implementing investment to expand the area of ​​phase 2 as planned.

Currently, the Southeast Economic Zone has invested in 1,222.12 hectares of industrial park area, of which the industrial parks in the Economic Zone are 1,170.94 hectares; the industrial parks outside the Economic Zone are 51.18 hectares, an increase of 1.6 times compared to 2013; newly developed 01 urban area with an area of ​​382.4 hectares. If in 2013, the first year of implementing Resolution 26, the Economic Zone had 43 operating enterprises, paid 628.3 billion VND to the budget, created jobs for 8,707 people, then by 2021 there were 132 operating enterprises and paid 2,162 billion VND to the budget, an increase of 3.45 times compared to 2013, creating jobs for over 30,000 workers. In total, from 2013 to 2021, the Economic Zone contributed VND 11,528 billion to the budget, accounting for over 10% of the province's total annual budget revenue.

Obstacles and challenges to overcome

Although it has made certain contributions to the socio-economic development of the province, objectively speaking, compared to the goal set forth in Resolution 26, which is “Building the Southeast Economic Zone into a key, multi-industry, multi-functional economic zone, focusing on the development of mechanical, electronic, information technology, automobile manufacturing, high-tech equipment, pharmaceuticals, agricultural, forestry and seafood processing industries…”, there are still some limitations and the contribution is still modest.

First of all, the general planning of the Southeast Economic Zone and the planning of industrial park development in the province. Despite efforts, the process still reveals some shortcomings and is difficult to implement because the planning has not closely followed practical requirements, development orientation and the ability to mobilize and allocate resources, the ability to attract investment, and the competitive advantages of each locality. Although it is an economic zone, the area is not concentrated but spread throughout the province, leading to difficulties in infrastructure investment; the planning of industrial park infrastructure has not been linked to the planning of social infrastructure such as the arrangement of workers' housing, kindergartens, cultural, sports and welfare facilities for workers.

The road connecting National Highway 48D (Road 36) to Hoang Mai II Industrial Park and Tan Thang Cement Factory has been completed and is waiting for investors to invest in infrastructure and businesses to lease land. Photo: Nguyen Hai

In addition, the investment in infrastructure construction of the Southeast Economic Zone from the State budget is quite limited, not meeting the needs of the projects; the capital sources from the provincial budget allocated to implement some projects are not timely. Typically, the main connecting traffic infrastructure projects such as N2, N5 (section 2), D4 roads at WHA Industrial Park, Nam Cam Industrial Park, Tho Loc Industrial Park to Cua Lo Port or the road connecting from National Highway 48D (Road 36) to Tan Thang Cement Project are under construction too slowly, affecting the ability to attract investment and promote project efficiency.

Thesocial infrastructure project, worker housingSlow implementation, not attracting and retaining workers to work long-term in industrial parks; quality and efficiency of investment promotion and attraction have not met requirements when not attracting many large projects with leading significance and breakthrough development momentum; lack of projects with high added value and modern technology.

The progress of project implementation after licensing is still slow, land use efficiency is not high; some large projects such as Kobe Steel,Quynh Lap Thermal Power PlantIn Hoang Mai town, FLC Resort in Nghi Tien commune (Nghi Loc)... could not be implemented as planned, affecting the planning, investment attraction and development plans of many localities.

Representatives of the Hanoi Center for Investment, Trade and Tourism Promotion and some investors visited the VSIP Urban Area model in Hung Nguyen. Photo: Nguyen Hai

Site clearance, land acquisition, and land allocation for project implementation, especially industrial park infrastructure projects such as VSIP, WHA, Hoang Mai I, and Nam Cam Industrial Park, have encountered many difficulties and problems, especially regarding compensation mechanisms and policies. Some localities have not managed planning and land well after site clearance, causing some areas in Area A - Nam Cam Industrial Park to be re-encroached upon and cultivated by people, but the handling has been slow...

To realize the above goal and effectively use the invested industrial park infrastructure, according to Mr. Le Tien Tri - Head of the Southeast Economic Zone Management Board: Along with the proposal to the Prime Minister to approve the Project to expand the area of ​​the Economic Zone to 83,000 hectares, the Economic Zone Management Board is proposing to the province and the Central Government to continue to pay attention and prioritize investment resources to upgrade traffic infrastructure connecting the industrial park with key traffic routes and seaports, build logistics service areas for the industrial parks... To effectively implement Resolution 26 in the new period, the Management Board is proposing 8 key tasks and solutions and will focus on implementing them in the coming time./.