IP in HCMC

Aug 11, 2023

Ho Chi Minh City has three EPZs and 14 industrial zones in 30 years


After more than 30 years of development, Ho Chi Minh City has three EPZs and 14 IZs in operation with a total area of ​​3,900 ha, occupancy rate reaching 81%, positively contributing to the city's economic growth. attracted more than 1,694 valid investment projects with a total registered investment capital of 12.43 billion USD, of which FDI capital accounted for 55.67%. The average annual export value of the IZ-EPZ reaches 7 billion USD, accounting for over 15% of the total export turnover of the city. The EPZs and IZs have contributed more than VND 22 trillion to the state budget, creating jobs for more than 281,000 workers. The Institute of Research and Development (R&D) of Ho Chi Minh City has just completed the first phase of the scientific project “Orientation”. industrial development of Ho Chi Minh City to 2030, vision to 2050”. According to the project, Ho Chi Minh City will pilot the transformation of four industrial zones (IZs) Cat Lai, Tan Binh, Hiep Phuoc, Binh Chieu and Tan Thuan Export Processing Zone (EPZ).

New model of the year of the EPZ-IZ in the future


According to the project, by 2030, with a vision to 2050, the city will pilot the transformation of five industrial zones and export processing zones. Accordingly, Tan Thuan EPZ (District 7) from now until the end of the land lease term in 2041 will transform towards attracting projects in the high-tech field. After 2041, the city will keep the EPZ land fund for industrial development with the criteria of attracting investment according to the orientation of Cat Lai Industrial Park (Thu Duc City) proposed to be converted into a specialized logistics industrial zone. In particular, the area of ​​land planned for the logistics industry is part of the Logistics Center No. 2 (Cat Lai Logistics Center) located in the southeast of the city, estimated at about 200-292 ha. Tan Binh Industrial Park (Tan Phu - Binh District) Tan) after the land lease term expires in 2047, continues to develop under the model of industrial park - service. In particular, the industrial park is invested in the model of a high-tech industrial park. This place will encourage existing businesses to innovate technology, convert part of the factory area into logistics warehouses to serve the development needs of the freight forwarding industry, reduce environmental pollution industries.

Binh Chieu Industrial Park (Thu Duc City) will transform in the direction of improving technology level, developing high-rise factories, attracting projects in the field of high technology, supporting industries serving the technology industries. Accordingly, after the land lease term expires in 2048, this place will develop in the service direction (logistics, cold storage area, trade center, product introduction, education). , healthcare…) due to the small area of ​​the industrial park and its location in a residential area. Part of the area suitable for planning will be retained; The remaining area will be converted and developed in the direction of industrial service. Particularly, Hiep Phuoc Industrial Park will be converted to the model of ecological industrial park. After the transformation, a 200-hectare supporting industrial zone will be built in Hiep Phuoc Industrial Park, phase 2, and a residential area serving Hiep Phuoc Industrial Park will be built to invest in social infrastructure serving the Industrial Park.

After the end of the state land lease term in 2046 (for phase 1) and 2058 (for phase 2), the industrial park land fund will be retained for industrial development with the criteria of attracting investment. According to the Institute of R&D, phase 2 will continue to transform the remaining IZs and EPZs in line with the development orientation of HCMC EPZs and EPZs in the period of 2023-2030 and a vision to 2045. Mr. Truong Minh Huy Vu, Deputy Director of R&D Institute, the first phase of the institute's project organized a workshop to collect opinions from departments, branches, experts and complete the content. Currently, the institute has sent a research report to the City People's Committee for guidance.
Conversion is inevitable
The Ho Chi Minh City R&D Institute believes that in the context of the explosive development of the industrial revolution 4.0, cheap labor and abundant resources are no longer competitive advantages. Therefore, it is necessary to restructure IZs and EPZs to limit labor-intensive industries and fields, and convert them to high-tech industries and fields with high labor productivity and knowledge content. .

“Need to plan new industrial zones, develop a roadmap to convert each existing IZ-EPZ into models of supporting, ecological, innovation, industrial - urban - service industrial zones. This is the right direction to meet current development needs in the digital context, attract large projects, develop supporting industry projects and innovate. According to the Institute of R&D, over the past time, the operation of Ho Chi Minh City's industry from input factors to output markets has mainly relied on the natural advantages and adjustments of the market, not from In particular, the growth rate of production value and the growth rate of added value of some key industries are lower than that of the whole industry and of key industry groups. . Thus, the city's industry is in danger of losing its leading position, in the context of the industrial revolution 4.0 and the rise of other localities.

“On the other hand, it is difficult for the city's industry to develop a breakthrough because it has expanded its production scale to near the maximum threshold (land, resources, etc.). Therefore, the future industry development strategy needs to go in-depth, shift industrial activities to master value-added stages on the regional and global commodity value chains. review.

Source: PLO

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