Nghe An: Shortcomings in the development of industrial clusters
(Baonghean)Currently, the province has 33 industrial clusters that have begun investment and construction, with the goal of having 50 industrial clusters by 2020. However, the planning and construction of these clusters are facing many difficulties, with most experiencing delays due to a lack of sufficiently strong mechanisms and solutions.
Most are behind schedule.
Vinh City currently has 5 industrial clusters: Nghi Phu, Hung Loc, Dong Vinh, Hung Dong, and Nghi Kim, with a total area of nearly 89 hectares. It is expected that, after completion of construction, these 5 industrial clusters will attract over 150 businesses to invest in production and business activities. Currently, 3 industrial clusters: Nghi Phu, Hung Loc, and Dong Vinh, invested in by the Vinh City People's Committee, have completed the construction of technical infrastructure and are 100% occupied. These clusters attract 38 businesses investing in production and business with a total initial investment of over 388 billion VND, a production value of over 390 billion VND per year, and create jobs for nearly 1,500 workers.
As for the Hung Dong and Nghi Kim industrial clusters, they are currently being invested in, constructed, managed, and operated. The city is currently working with investors to adjust the planning and build infrastructure.
In Do Luong district, two industrial clusters have become operational. These are the town industrial cluster, covering 7.78 hectares and fully occupied with 13 businesses investing in production and trading; and the Lac Son industrial cluster, with a total area of 20 hectares, currently housing two manufacturing businesses.
However, the number of effectively operating industrial clusters is not large, and many are abandoned. For example, in Quy Chau district, in 2013, a 9-hectare small-scale industrial cluster was built in Tan Lac town. However, due to the lack of integrated infrastructure, this cluster has been abandoned for a long time. Currently, besides the 4 hectares still facing land clearance issues for agricultural land, the remaining 5 hectares have had roads and drainage systems built by the district, but these are unfinished, and land leveling has not been completed. Funding for the project faces many difficulties, especially for compensation and land clearance.
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| Woodworking production at Nguyen Nghia Company (Do Luong Town Industrial Cluster) |
In Do Luong district, besides the two already operational industrial clusters, there is an additional Thuong Son industrial cluster covering 8.4 hectares, intended to relocate some polluting production households currently located within residential areas. This industrial cluster was approved by the Provincial People's Committee in 2015, but to date, the infrastructure has not been built. According to the district's People's Committee leaders, the most important reason remains the lack of funding.
Quynh Luu district has three planned industrial clusters: Quynh Nghia, Quynh Hoa, and Quynh Chau. That's the goal, but in reality, it's very difficult to implement due to the financial constraints of land compensation and infrastructure investment.
According to Decision 45/2015/QD-UBND of the Provincial People's Committee dated August 26, 2015, on regulations regarding investment support policies for the construction of industrial cluster infrastructure, the maximum support for the construction of infrastructure items within industrial clusters, including internal roads and internal drainage systems, is no more than 6 billion VND for mountainous areas and 5 billion VND for lowland areas. Many opinions suggest that this support level is too low, considering that the investment cost for industrial cluster infrastructure is around 100-120 billion VND per cluster.
Mr. Nguyen Son Ha, Head of the Infrastructure Department of Quynh Luu District, said that before the adjustment of the district's administrative boundaries, most resources were focused on building infrastructure in the Hoang Mai area to attract investment in industrial and handicraft development. Therefore, after the adjustment of administrative boundaries, attracting investment in industrial development in Quynh Luu District has faced many difficulties. The budget allocated for development investment is limited, and the infrastructure is inadequate and weak, resulting in low attractiveness to investors.
Funding constraints, solutions
| Nghe An province has 33 industrial clusters that have completed the initial stages of investment and construction (preparation and approval of detailed industrial cluster plans; preparation and approval of investment projects for industrial cluster technical infrastructure; implementation of industrial cluster technical infrastructure investment and organization of attracting investment in production and business). Of these, 9 industrial clusters are fully occupied, 5 are undergoing investment and have businesses starting production and business operations, 8 are in the process of infrastructure construction, and 11 have had their detailed plans prepared and approved. These industrial clusters have attracted over 180 investment projects, mainly small and medium-sized enterprises, including 3 foreign investment projects. The total investment capital of enterprises in the industrial clusters reached VND 2,038 billion (an average of VND 11.38 billion per enterprise). The number of workers employed in the industrial clusters is approximately 11,745. The production value of enterprises in the industrial clusters reached approximately VND 2,358 billion per year. |
During the period 2011-2015, following the direction of the Provincial People's Committee, some industrial clusters with unsuitable locations were removed from the planning. Several land locations suitable for industrial production and with advantages in transportation infrastructure, electricity, water, and the ability to attract investment for rapid occupancy were adjusted and supplemented, and approved by the Provincial People's Committee in Decision No. 1172/2014/QD-UBND dated March 28, 2014. Mr. Nguyen Van The, Head of the Industrial Management Department of the Department of Industry and Trade, stated: The goal by 2020 is to have 48 industrial clusters in the province, with a total planned area of 961.24 hectares (including the newly added Thuong Son Industrial Cluster of nearly 10 hectares).
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| The infrastructure of the craft village industrial cluster in Quy Chau town (Quy Chau district) is not yet complete. |
"According to regulations, infrastructure must be completed within 24 months after the planning is approved, but most industrial clusters have not met the deadline. Investment has been socialized, but investors have been unable to raise capital. Eleven out of 33 industrial clusters that have taken the initial investment steps in the province are currently only... on paper," Mr. The added.
Land clearance for industrial clusters in particular, and economic zones and industrial parks in general, still faces many obstacles. Infrastructure investment progress is slow, investment lacks coordination, and the construction of resettlement projects is delayed. Some contractors only carry out work in a perfunctory manner, leading to industrial cluster infrastructure not meeting the requirements for attracting investment. The implementation progress of some investment projects is slow, prolonged, or unsuitable. Meanwhile, the province's budget is limited, the central government budget is insufficient, and the government is tightening and cutting public investment, making it difficult to balance investment resources for key infrastructure projects serving industrial development, especially the budget allocated to support infrastructure construction in economic zones, industrial parks, and industrial clusters.
Perhaps it would be better to invest decisively in one industrial cluster and then allocate resources to another, avoiding scattered and piecemeal investments, and not necessarily chasing after the number of industrial clusters.
Thu Huyen
