Want to be in the loop?
subscribe to
our notification
Business News
HCM CITY INDUSTRIAL PARKS, EXPORT PROCESSING ZONES NEED REVAMP TO ATTRACT INVESTMENT
With its neighbouring provinces offering competitive land rentals and other incentives at industrial parks to attract investors, HCM City needs to step up its game too.
There are 17 industrial parks and processing zones in the city and they have an occupation rate of 68 per cent, with specialised industrial parks, except the Quang Trung Software City, not attracting much interest from enterprises.
For example, the Automotive- Mechanical Industrial Park established three years ago on an area of nearly 100ha in Củ Chi District has attracted only 12 companies who have invested around VNĐ900 billion (US$38.8 million) and lease around 20ha, or a fifth of its area.
A recent study conducted by the HCM City Export Processing Zone and Industrial Park Authority (Hepza) and a research team from the HCM City University of Economics found that the city’s advantages over neighbouring localities with regard to attracting investment in its IPs and EPZs have reduced since the latter are offering competitive land rentals and other incentives.
The infrastructure at many of the city’s IPs and EPZs fall short of investors’ needs.
While the average rent is $74 per square metre in Đồng Nai for a lease term of 40-50 years, $43.7 in Bình Dương and $76 in Long An, it is $125 in HCM City.
The city needs to restructure and switch to newer models of IPs and EPZs now to continue to attract investment, ensuring it has appropriate mechanisms and policies during the transition process.
Đầu tư (Investment Review) newspaper reported the city has sought the Government’s approval to make 1/2,000 scale plan for a new 380ha industrial park in Phạm Văn Hai commune, Bình Chánh District.
It will be a specialised industrial park prioritising innovative start-ups and producers and distributors in new industries and technologies.
Source: VNS
Related News
![Card image cap](/uploads/news/bn-01.jpg)
VIETNAM INTENSIFIES E-COMMERCE TAX SCRUTINY
The department plans to offer guidance for and hold direct dialogues with e-commerce taxpayers to ensure compliance. Efforts will also include updating the e-commerce database, conducting risk analysis, and leveraging artificial intelligence (AI) to manage data and issue alerts.
![Card image cap](/uploads/news/eco2.jpg)
FOOTWEAR EXPORTS SEEN REACHING US$27 BILLION THIS YEAR
This optimistic forecast reflects the industry’s efforts to expand and diversify its markets. Lefaso indicated that Vietnam’s footwear sector will concentrate on traditional markets like the U.S. and the European Union, alongside markets with free trade agreements to maximize opportunities.
![Card image cap](/uploads/news/Security.jpg)
2025 PIVOTAL FOR STOCK MARKET UPGRADE EFFORT
The Ministry of Finance (MoF) is expected to soon publish the entire content of the draft circular amending and supplementing four circulars on transactions, registration, depository, and clearing, as well as operations of securities companies and information disclosure. This move, along with feedback and explanations, aims to meet the criteria for upgrading Vietnam’s stock market.
![Card image cap](/uploads/news/Eco3%20%281%29.jpg)
CAPITAL FLOWS STRONGLY INTO INDUSTRIAL REAL ESTATE
Industrial real estate has had easier access to bank credit since July, when the State Bank of Vietnam (SBV) reduced the credit risk coefficient for industrial real estate from 200 per cent to 160 per cent, encouraging commercial banks to lend to more projects in the segment.
![Card image cap](/uploads/news/Eco4.jpg)
GDP GROWTH REACHES 6.42 PC IN FIRST HALF
Vietnam's economy grew by 6.42 pc in the first six months of 2024, slightly lower than the figure of 6.58 pc in the same time of 2022 within the 2020-2024 period.
![Card image cap](/uploads/news/FDI.jpg)
FDI INFLOW INTO VIETNAM REACHES NEARLY 15.2 BILLION USD
Vietnam attracted nearly 15.2 billion USD in foreign direct investment (FDI) in the first six months of this year, a year-on-year increase of 13.1 per cent, according to the General Statistics Office.