Industrial cluster development: Need for open mechanism

(Baonghean) - Issuing appropriate mechanisms and policies and promoting investment in building technical infrastructure for industrial clusters (ICs)... are practical tasks of all levels and functional sectors in the development of ICs. Thanks to that, in many localities, there are ICs that promote efficiency and create important momentum, contributing to promoting the process of industrialization and modernization of rural areas. However, there are still many shortcomings in the ICs, such as unreasonable planning, unsynchronized technical infrastructure, environmental pollution...

Exploit potential, promote advantages

Vinh City is one of the localities that strongly develop industrial clusters. To achieve that result, along with issuing policies and open mechanisms in land lease, tax, vocational training support... Vinh City also allocates budget to invest in technical infrastructure. Therefore, in the city, there are 5 industrial parks approved for planning with a total area of ​​90.18 hectares, of which 3 industrial parks Nghi Phu, Hung Loc, Dong Vinh have built technical infrastructure and filled the area...

NPK fertilizer production at Viet My Company Limited in Nghi Phu Industrial Park - Vinh City.

Mr. Pham Van Thao - Director of Viet My Company Limited located in Nghi Phu Industrial Park said: "The technical infrastructure items of the Industrial Park have been basically completed and along with that, the investment attraction policy mechanism is open, so with a scale of 10.5 hectares, 18 enterprises have built factories and produced and operated effectively. Enterprises in the Industrial Park mainly operate in fields such as fertilizer, rattan and bamboo, rolling doors, gas... In which, Viet My Company Limited has invested capital to build a large-capacity fertilizer factory and has stable production and business". Or at Hung Loc Industrial Park, Vinh An Company Limited has benefited from preferential policies on investment attraction, has invested in a stone powder processing factory and many enterprises have boldly invested large capital to install modern production equipment, creating prestigious products on the market, such as aluminum, glass, rolling doors, plywood... It is known that at 3 industrial parks (Hung Loc, Nghi Phu, Dong Vinh), the capital for investment in building technical infrastructure is more than 46 billion VND and 36 enterprises have attracted 622 billion VND in investment to build factories, install production equipment...

Currently, many localities have promoted the advantages of resources, labor force, issued appropriate mechanisms and policies to create effective industrial zones and clusters. Typically, in Dien Chau, since 2003, when the development of industrial zones and clusters in many localities in the province was still new, Dien Chau boldly invested in building Dien Hong Industrial Zone with an area of ​​10 hectares, attracting 11 enterprises and 26 households to invest in building technical infrastructure, production and business workshops... The success of this first industrial zone model is an important driving force for Dien Chau to boldly develop industrial zones and clusters in the district. With a dynamic approach and support from all levels and sectors, and drastic participation, currently Thap - Hong - Ky Industrial Zone (area of ​​23 hectares) has basically completed technical infrastructure, attracting 25 projects. Including the investment project in the industrial garment industry of the Korean company NAMSUNG VINA with a total investment capital of 5.3 million USD (phase 1), creating jobs for more than 1,300 local workers. Or Thanh Phat Company Limited invested 32 billion VND to build a steel pipe factory, producing nearly 90 tons of products including 20 types of steel pipes each month... In this industrial park, many more projects have come into operation such as: production of construction materials, processing of forest products, production of steel, fertilizers, aluminum products, household appliances...

Up to now, in the province, there are 32 industrial parks that have been and are implementing technical infrastructure with a total planned area of ​​467 hectares, of which industrial production land is 314 hectares. Currently, there are 12 industrial parks that have invested relatively completely in infrastructure (total area of ​​185.8 hectares) and these industrial parks have attracted nearly 160 investment projects, including 3 foreign investment projects with a total investment of 1,913 billion VND (average 15 - 20 billion VND/enterprise). The main investment areas are mineral processing, forestry products, garment, mechanical processing, metal recycling, plastic product recycling and manufacturing, packaging manufacturing.

In addition to 4 large-scale investment projects in the garment sector (in Anh Son Town Industrial Zones, Lac Son Industrial Zone, Nam Giang Industrial Zone, Thap - Hong - Ky Industrial Zone), the remaining projects are all medium and small-scale. The establishment of industrial zones has promoted the development of local industry and handicrafts, exploited the potential and advantages of each region, created jobs for many workers, contributed significantly to the implementation of the province's socio-economic development goals, developed accompanying services, created jobs and income for workers. The development of enterprises in industrial zones has contributed to changing the face and structure of the province's trade network of goods and services. In 2013, the production value of enterprises in industrial zones reached nearly 2,000 billion VND, accounting for 12% of the province's total industrial production value, and the budget revenue reached about 150 billion VND. Enterprises in the industrial park have attracted nearly 8,300 workers (average 50 workers/enterprise).

Stimulus policies

It is known that in the period of 2012 - 2020, Nghe An continues to implement investment development according to the Plan of 38 industrial clusters. Investment is divided into 2 phases: In the period of 2012 - 2015, completing investment preparation work and focusing on investment development of 27 industrial clusters; in which focusing on calling for investment, prioritizing capital sources to attract investment, striving to fill the industrial clusters: Nghia My, Truong Thach, Nam Giang, Lac Son, Dong Van, Nghia Hoan, Yen Thanh Town by 2015, basically filling the industrial clusters of Nghia Long, Nam Thai, Hung Dong, Nghi Lien, Nghi Kim, Tho Son I and II. In the period of 2016 - 2020, continue to invest in the remaining clusters according to the plan.

Producing garments for export at NAMSUNG VINA Company in Thap - Hong - Ky Industrial Park (Dien Chau).

Identifying industrial development in rural areas as a very necessary and important solution for socio-economic development, the province has focused on investing in infrastructure, issued many programs, policies and incentives to attract investment in industrial development in rural areas. Resolution 06-NQ/TU of the Provincial Party Committee for the term 2011 - 2015 on industrial development, small-scale industry and craft village construction in the period 2011 - 2020 has policies to prioritize industries that directly impact agriculture, rural areas and employ a lot of labor. In the context of difficult budget sources, the Provincial People's Committee has issued a policy to support the development of industrial clusters, accordingly, the province supports detailed planning costs from 100 - 120 million VND/industry cluster; supports compensation for site clearance of 100 million VND/ha; Support investment in technical infrastructure in industrial parks including internal roads, drainage systems, wastewater and centralized waste treatment systems with a maximum support level of 3 billion VND/cluster.

Still therethe disadvantages

In reality, besides the practical benefits from the development of industrial clusters, there are still difficulties and shortcomings in the implementation process, especially the slow and unsynchronized implementation of technical infrastructure construction of industrial clusters. Some investment projects are not suitable or lack sustainability such as Dien Hong Industrial Cluster (Dien Chau), Do Luong Town Industrial Cluster, Dong Vinh Industrial Cluster - Vinh City... located close to residential areas. In industrial clusters in the province, environmental pollution is quite common and is affecting the lives of surrounding people. People have petitioned the authorities, businesses have acknowledged those shortcomings but there are almost no radical solutions. Dust, noise, wastewater... from paper, plywood, and recycled plastic companies still regularly pollute the environment in residential clusters of Hoa Tien and My Ha hamlets (Hung Loc commune - Vinh City). Enterprises take advantage of roads and corridors to gather materials and produce, making the appearance of the industrial park messy and chaotic. The drainage system has lost all covers and is damaged, and most enterprises discharge wastewater directly into the outside environment, affecting the lives and production of people.

Although the province has many policies and mechanisms to support the development of industrial clusters, the reality shows that the support sources for industrial clusters are still limited. On average, each industrial cluster has an area of ​​at least 20 hectares, so the capital for planning, compensation for site clearance, and technical infrastructure in the industrial cluster needs at least 30 billion VND. However, currently, the province's support policy is only about 3 billion VND/industry cluster. The demand for investment in industrial clusters is high in quantity in the province but fragmented for industrial clusters. Therefore, infrastructure investment is not effective, so few businesses are interested in this field. This work is mostly carried out by the People's Committees of districts through the Industrial Cluster Management Board. However, due to limited budgets, many districts face many difficulties in this work, leading to failure to attract businesses to produce in the industrial clusters. Mr. Le Quang Nhung, Head of the Department of Industry and Trade of Nghia Dan district, said: Due to lack of funds, the Nghia Long Industrial Park has not yet completed the investment in technical infrastructure. The wastewater treatment system, roadbed and drainage ditches in the industrial park have not yet been fully invested. Therefore, businesses wishing to produce here must pay for the ground leveling themselves. This is an "obstacle" that prevents the industrial park from being filled.

However, the basic limitation in the development of industrial parks in Nghe An at present is still the many obstacles in the mechanism, policies, and administrative procedures; low capital mobilization for infrastructure construction... To ensure favorable conditions to accelerate infrastructure investment and attract businesses to fill industrial parks, the core issue is to make investments quickly and on schedule. To do so, site clearance needs to be quick and land must be handed over on schedule according to investors' requirements. Combine investment in rural traffic construction, traffic development programs with investment in infrastructure construction outside the industrial park fence to take advantage of investment capital from the programs, ensuring adequate factors of traffic, electricity supply, and water supply and drainage for industry.

Faced with the above difficulties, to welcome investment flows to rural areas, all levels and sectors need to have practical solutions. Regarding capital sources, continue to mobilize support capital from the Central Government and link investment in the construction of industrial clusters with programs to support rural transport development to reduce investment costs for localities. In addition, call on infrastructure businesses to enter industrial clusters, encourage investors to spend their own costs on leveling the land on the leased area to build factories according to the plan. The organization ensures the provision of sufficient investment resources and creates all favorable conditions such as exploiting raw materials, investment procedures... for industrial cluster businesses to develop. Mr. Nguyen Huy Cuong - Deputy Director of the Department of Industry and Trade said: The Department of Industry and Trade has also advised the Provincial People's Committee to develop a policy mechanism to increase the level of support for infrastructure investment, industrial development and invite economic sectors to participate in investing in developing industrial clusters in rural areas. In addition, we also require local authorities to promote administrative reform and create favorable conditions to support the development of local businesses.

With strong participation, Nghe An Provincial People's Committee has issued the Regulation on coordination in managing industrial parks, creating favorable conditions for implementation. Accordingly, promoting the pilot establishment of the Industrial Park Development Center. Improving the quality and scientific nature of detailed planning and industrial park investment projects. In particular, paying special attention to and reasonably arranging land, space and overall environmental treatment measures. Organizing inspections and timely handling of investments in expanding and developing industrial parks into concentrated industrial parks when conditions permit. Based on the Government's mechanisms and policies and the ability to mobilize revenue from local budgets, the level of support for infrastructure construction investment items for industrial parks will be increased as stipulated in Decision No. 83/2009/QD-UBND dated September 4, 2009 of Nghe An Provincial People's Committee. Combining support from the central budget from programs, combining capital mobilization from enterprises, to create budget capital for investment in developing industrial parks, at the same time, making detailed plans to form urban areas, towns, and townships, implementing planning of accompanying residential areas for sale, using the money collected from transferring land use rights for investment and development.

Article and photos:H. Vinh - P. Bang