The paradox behind industrial clusters in Quy Hop

The above information was given to Nghe An Newspaper reporters on the sidelines of the Conference "Business dialogue, promoting exports in 2024" organized by the Provincial People's Committee on the afternoon of March 6, 2024.

Here, a representative of the Quy Hop Small and Medium Enterprises Association said that many businesses in the area are facing difficulties in leasing land in industrial parks, where they have had factories for many years. This person said: “In 2023, the People's Committee of Quy Hop district will review and require these businesses to complete land leasing procedures before they can operate. However, this is a very difficult task to implement because there are many problems that need to be considered and resolved by competent authorities. Faced with this reality, the Quy Hop Small and Medium Enterprises Association has made a written request but it has not been completely resolved. We are very concerned because if businesses cannot complete land leasing procedures, leading to the suspension of production activities, it will adversely affect the lives and jobs of workers and many other issues…”.

Hội nghị đối thoại doanh nghiệp, đẩy mạnh xuất khẩu năm 2024 diễn ra vào ngày 6/3/2024. Ảnh: Thu Huyền
The business dialogue conference to promote exports in 2024 took place on March 6, 2024. Photo: Thu Huyen

Verifying the information, on May 26, 2023, the Quy Hop Small and Medium Enterprises Association issued Official Dispatch No. 21-CV/HDN requesting the leaders of Quy Hop district to resolve the land lease dossier problems. The reason for the request, as shown in Official Dispatch No. 21-CV/HDN, was because previously, on May 5, 2023, the People's Committee of Quy Hop district issued Notice No. 192/TB-UBND on handling mineral processing factories that have not yet leased land in the area. In which, the enterprises are required to complete the land lease (including 23 factories that do not have land lease dossiers, 19 have dossiers but have not been approved), otherwise they will be forced to suspend production and dismantle factories and invested and built works.

According to the Quy Hop Small and Medium Enterprises Association, local businesses always want to complete procedures to be leased land by the State, creating stability and conditions to expand facilities to serve long-term production and business. However, many businesses have had licenses to exploit and process minerals and have applied for land lease for many years but have not been able to lease land. “There are enterprises that have been in production for 5-7 years, even 10 years, while applying for land lease, but the approval results are slow, due to many objective and subjective reasons, including slow administrative procedures, changes in planning of industrial parks - craft villages, changes in planning of new rural areas…” – The Quy Hop Small and Medium Enterprises Association pointed out the current situation of difficulties in land lease, and at the same time recommended: “Issuing notices and conducting inspections and handling, especially suspending production and dismantling facilities that have been invested with billions of dong, in such a period of time is completely inappropriate, will cause consequences for production and business of enterprises in the area in the short and long term, significantly affecting local budget revenue, income of workers, enterprises, reputation with domestic and foreign customers…; To solve this problem, it is necessary to give a specific roadmap such as from now until December 31, 2023, Enterprises must complete land lease application documents and submit them to competent authorities for approval. If they do not submit them within the above deadline, sanctions will be applied according to regulations...

Cụm công nghiệp Thung Khuộc nằm ngay cửa ngõ vào trung tâm huyện Quỳ Hợp. Ảnh: Thành Cường
Thung Khuoc Industrial Cluster is located right at the gateway to the center of Quy Hop district. Photo: Thanh Cuong

Entering 2024, the Quy Hop Small and Medium Enterprises Association has reported the results of its work to the Provincial Association and relevant agencies. In the report, the Quy Hop Small and Medium Enterprises Association continues to recommend considering and removing the problem of land lease records for enterprises: "Currently, many enterprises, especially those in industrial parks - craft villages, have incomplete land lease records (there are many objective and subjective reasons in the production process); completion still has many difficulties, we respectfully hope that competent authorities will pay attention to orienting solutions".

Grasping information about the problems in land leasing of mineral exploitation enterprises in Quy Hop area, it is known that through inspection, the People's Committee of Quy Hop district determined that there are 43 mineral processing factories that do not have land leasing procedures according to regulations; These 43 mineral processing factories have been built and used stably from 2004 to present, belonging to 22 organizations and 21 individual households. Of those 43 factories, up to 25 factories are located in Industrial Clusters and Concentrated Stone Processing Zones; specifically: Tho Son 1 Industrial Cluster has 5 factories; Tho Son 2 Industrial Cluster has 7 factories; Thung Khuoc Industrial Cluster has 3 factories; Chau Quang Industrial Cluster has 1 factory; Chau Loc Industrial Cluster has 2 factories; Concentrated Stone Processing Zone of Dong Hop commune has 7 factories.

Regarding the content proposed by the Quy Hop Small and Medium Enterprises Association, according to the leaders of the People's Committee of Quy Hop district, the district and related departments and branches have focused on resolving it. However, in the process of considering and resolving, difficulties and problems have arisen such as safe distance to residential areas, safe distance to the environment, new rural planning, lack of environmental license for the investment project to build infrastructure for the Industrial Cluster and Concentrated Stone Processing Zone, lack of synchronous construction of environmental protection infrastructure, etc.

Một số xưởng chế biến khoáng sản trong Cụm công nghiệp Thung Khuộc chưa hoàn thiện việc thuê đất. Ảnh: Nhật Lân
Some mineral processing factories in Thung Khuoc Industrial Park have not completed land lease. Photo: Nhat Lan

Mr. Tran Duc Loi - Vice Chairman of Quy Hop District People's Committee, discussed: "This is basically a historical existence. Quy Hop has paid attention and proactively intervened to resolve the issue, but does not have enough authority to handle the problems. Not only in 2023 but also in 2022, the district has reported this content to competent authorities. Currently, the district is re-establishing a detailed report according to the instructions of the Department of Natural Resources and Environment to have a basis to recommend competent authorities to consider, resolve, create favorable conditions for enterprises to produce and do business and comply with the provisions of law...".

Learning about the birth of Industrial Clusters in Quy Hop district, according to available documents, the recognition and approval of detailed planning has been around for many years. The earliest is Thung Khuoc Industrial Cluster, which was recognized by the Provincial People's Committee and approved for detailed construction planning in 2007 in Decision No. 2021/QD.UBND-CN. With Tho Son 1 Industrial Cluster, Tho Son 2 Industrial Cluster, Chau Loc Industrial Cluster, Chau Quang Industrial Cluster, all had their detailed construction planning approved by the Provincial People's Committee in 2015. Regarding the origin of land within the Industrial Clusters, it is basically agricultural land transferred by mineral production enterprises from local households to build production factories, long before the Industrial Clusters were recognized and approved for detailed planning!

Một xưởng chế biến khoáng sản trên địa bàn xã Tam Hợp, Quỳ Hợp chưa được thuê đất. Ảnh: Nhật Lân
A mineral processing factory in Tam Hop commune, Quy Hop has not yet been leased land. Photo: Nhat Lan

Temporarily taking 2015 as the time mark for the establishment of the Industrial Clusters of Quy Hop district, it has been 9 years now. The fact that 9 years have passed but many enterprises in the Industrial Clusters have not yet leased land is clearly a paradoxical existence. Therefore, this is really an issue that needs to be considered and resolved soon. To avoid affecting the production and business activities of related enterprises; to stabilize the lives and jobs of workers; and to recover to the budget the land rental fees, up to several dozen hectares of land that enterprises have not paid for many years!