Promptly increasing industrial land bank to avoid missing investment opportunities

​(News Portal – Dong Nai) - The demand for renting land to set up production and business projects in industrial zones in Dong Nai province is very large but the current available land bank for rent is very low. Both investors and local authorities are very impatient because despite its potential and advantages, if it does not improve promptly, the province will miss the opportunity to attract large investment projects with modern technology. 

Secretary of the Provincial Party Committee Nguyen Hong Linh, Vice Chairwoman of the Provincial People's Committee Nguyen Thi Hoang and the working group inspect the progress of infrastructure investment in Long Thanh High-tech Industrial Park, where 150 secondary investors are interested. 

Faced with that situation, the Provincial National Assembly delegation recently had a trip to monitor the development of industrial parks and attract investment in the area. The Provincial People's Committee has also established a working group to promote industrial park development to solve the above problem in a timely manner.

Hoping to soon receive approval for the policy of establishing more industrial parks

According to the Dong Nai Industrial Zones Authority, Dong Nai province has 39 industrial parks with an area of 18.8 thousand hectares with approved planning. Of these, 33 industrial parks were established with a land area of 10.5 thousand hectares, including 31 operating zones, 1 zone is in land acquisition and attracting investment for infrastructure construction (Long Thanh high tech industrial park), and 1 zone just established in July 2023 (Long Duc 3 Industrial Park), attracting FDI investment with a capital of about 29.3 billion USD. The remaining area according to the Prime Minister's planning, includes new industrial parks that have not yet been established and phase 2 of the expansion of industrial parks, is more than 8.3 thousand hectares.

Mr. Nguyen Tri Phuong, Head of Dong Nai Industrial Zones Authority, said that the remaining industrial land bank available for investors to rent was limited. To date, 32 out of 33 industrial parks have rented 85.4% of about 7 thousand hectares of factory rental area (not including the newly established Long Duc 3 Industrial Park).

The remaining 25% of the area is currently waiting for site clearance due to compensation for clearance, or legal procedures for implementing technical infrastructure investment have not been completed. Procedures for approving investment policies for industrial park infrastructure investment projects and selecting investors to implement projects are complex and lengthy, not meeting the land rental needs of investors. Besides, another challenge is that the unit price of industrial park land rental has increased recently, affecting the progress of compensation, land recovery, handover to investors as well as the implementation of industrial park infrastructure construction. For secondary projects, the significant increase in rent in a short period of time makes it more difficult for businesses paying land rent annually to calculate their expenses.

Faced with these challenges, at the recent supervision session of the National Assembly Delegation of Dong Nai province, the Dong Nai Industrial Zones Authority requested the province and the supervision delegation to propose to the Prime Minister and the Ministry of Planning and Investment to consider the applications for approval of the policy of establishing industrial parks have been submitted (Phuoc Binh 2, Bau Can - Tan Hiep, Xuan Que - Song Nhan, Amata phase IIIB). This is the basis for the province to carry out further work to create a premise to attract project investment in industrial parks. In addition, the Provincial People's Committee directs and urges relevant agencies and localities to complete site clearance of the remaining area, otherwise it will continue to be difficult to meet investor needs. ​

Establish a working group to promote overall progress

The lack of industrial land bank not only worries secondary investors and infrastructure investors, but it also forces local authorities to quickly find solutions.

On October 16, the Provincial People's Committee decided to establish a working group to promote the development of industrial parks in the province. Accordingly, Vice Chairwoman of the Provincial People's Committee Nguyen Thi Hoang is the group leader and Head of the Dong Nai Industrial Zones Authority Nguyen Tri Phuong is the deputy leader and members of the working group are leaders of local departments and sectors.

The working group is responsible for advising the Provincial People's Committee to propose to the Prime Minister to add additional industrial park land targets in the national land use planning for the period 2021 - 2023 in the province. The group also conducts specific and detailed assessment of each proposed industrial park; researches ecological and high-tech industrial parks to attract investment in projects with advanced and modern technology, capable of connecting global production and supply chains.

According to Member of the Party Central Committee, Secretary of the Provincial Party Committee Nguyen Hong Linh, with the advantages of expansion and resonance from Long Thanh International Airport and major infrastructure projects that have been and are being implemented, in addition to the promptly establishing and timely investing in more industrial park infrastructure projects, Dong Nai province will also pay more attention and be stricter in attracting investment. Delay in adding industrial land bank means missing the opportunity to attract landmark investment projects for Dong Nai's development in the coming period and this is a problem that needs to be resolved soon.