HCM CITY NEEDS TO UPGRADE INDUSTRIAL ZONES TO ATTRACT FDI: EXPERTS

To attract more investment, especially from overseas, HCM City needs to renovate and reform its export processing zones (EPZs) and industrial parks (IPs), Tran Quang Truong, general director of Tan Binh Industry Park said.

Their infrastructure, mostly built in the 1990s, had deteriorated, especially wastewater treatment facilities, with a number of central wastewater treatment systems being found to violate environmental regulations, Truong said.

Many companies seeking to expand could not find enough land for lease in them and rentals were too high compared to EPZs and IPs in neighbouring provinces. Roads near EPZs and IPs were often overloaded, leading to higher production costs for their tenants and reducing their competitiveness, Tran Trong Tien, a representative of enterprises in Tan Thuan Export Processing Zone said.

Other problems included flooding, lack of schools, accommodation and medical facilities for workers and their families, Tien said.

The limited availability of skilled IT and management personnel was also an issue.

To address these problems, administrative procedures related to investment, labour and construction in the EPZs and IPs needed to be simplified to attract foreign investment.

The quality of life and working environment for workers needed to be improved.

Dao Xuan Duc, deputy head of the HCM City Export Processing Zones and Industrial Parks Authority (Hepza), said the city would make all EPZs and IPs green, clean and hi-tech by 2025 and build new hi-tech zones for supporting industries.

The city targeted having 23 EPZs and IPs with an area of around 6,000ha by 2020.

Priority would be given to current investors in hi-tech, Industry 4.0 technologies and parts supply industries with high value-addition.

Losing sheen

The city is losing its advantages over neighbouring provinces, and one of the main reasons is its high land rental rates.

The average rental in its EPZs and IPs is US$120 per meter square. In comparison, it is $74 in Dong Nai Province, $73 in Long An and $43.7 in Binh Duong. The city needs to improve the efficiency of land use to reduce rentals and also strengthen linkages with other zones in the southern region, Trinh Ngoc Vu an expert in economics said.

Last year the city’s EPZs and IPs attracted $772.3 million worth of investment, but only $290.8 million worth of foreign investment, a drop of 25.8 per cent from 2017, according to Hepza.

Most projects were in technology-oriented industries, including food processing, chemical-rubber, information technology, and supporting industries.

Source: VIR

Related News

MEMBER CORNER / PROMOTIONS

KNIC ENGAGES WITH GOVERNMENT AND HIGH-TECH BUSINESS COMMUNITIES IN CHINA

From Beijing to Shandong, KN Holdings and KN Industrial City are continuing to expand their engagement with government authorities, trade promotion organizations, and high-tech business communities in China. In Beijing, the delegation met with the Center for International Economic and Technological Cooperation under the Ministry of Industry and Information Technology (MIIT), exchanging perspectives on industrial and technology cooperation between the two markets.

Sep 24, 2026

VIETNAM ECONOMY INVESTMENT

VIETNAM’S TRADE TOPS $825 BILLION BY MID-SEPTEMBER

Figures released on September 21 showed goods trade reached nearly $55 billion in the first 15 days of September alone, bringing cumulative turnover since the beginning of the year to more than $825 billion. The strong growth reflects robust trade flows, with demand for consumer goods and production inputs remaining high.

Sep 23, 2026

TECHNOLOGY

VIỆT NAM'S BUSINESSES MOVE TOWARDS AI AGENTS

Việt Nam’s AI landscape is entering a new phase as businesses move beyond generative AI (GenAI) tools designed to assist human users towards autonomous AI, agentic AI and AI agents that can take action with limited supervision, experts have said. The shift comes as Việt Nam seeks to accelerate science and technology, innovation and digital transformation under Politburo Resolution 57-NQ/TW, issued on December 22, 2024.

Sep 23, 2026

GARMENT / TEXTILE

VIỆT NAM TARGETS $48 BILLION IN TEXTILE-GARMENT EXPORTS

Việt Nam’s textile and garment industry is facing both opportunities and challenges amid complex and unpredictable developments in the global market, prompting businesses to improve growth quality, optimise production costs and enhance adaptability in pursuit of an export turnover of about $48 billion this year. The target is considered an important milestone that requires concerted efforts from management agencies and the business community.

Sep 23, 2026

INFRASTRUCTURE / CONSTRUCTION / LOGISTIC / PORT

CUTTING LOGISTICS COSTS KEY TO BOOSTING EXPORTS

Reducing costs has become an increasingly urgent priority for import-export activities, particularly logistics costs, a conference in Hà Nội was told on Tuesday. According to Deputy General Director of the Ministry of Industry and Trade's Agency for Foreign Trade, Trần Thanh Hải, import-export activities has remained a bright spot for the economy in recent years, playing an important role and helping drive macroeconomic growth.

Sep 23, 2026

LEGAL UPDATE / POLICY

FLEXIBLE FISCAL POLICY HELPS DRIVE ECONOMIC GROWTH

Việt Nam’s fiscal policy has been implemented in a targeted expansionary manner since early 2026, helping maintain macroeconomic stability and supporting the country’s goal of achieving double-digit economic growth. According to the Ministry of Finance, State budget revenue in the first eight months of 2026 was estimated at VNĐ2.02 quadrillion (US$77.7 billion), equivalent to 80 per cent of the annual estimate and up 16 per cent year-on-year.

Sep 23, 2026