[hepr-vn] Poor infrastructure stumps investments in many IZs
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Sun Aug 3 06:00:39 EST 2008
Poor infrastructure stumps investments in many IZs
While many IZs have filled to their capacity, particularly in Ha Noi and HCM
City, the poor infrastructure of some IZs in the central region has kept
investors away. — VNA/VNS Photo Ho Cau
HA NOI — Iadequate infrastructure has kept investors away from industrial zones
in the central provinces, billions of dong spent on the construction of these
zones is being wasted.
A lack of waste water treatment facilities in Nam Dong Ha Industrial Zone in
Quang Tri Province hampers growth as companies are hesitant to invest.
Nam Dong Ha Industrial Zone was built in April 2006, with an area of 136ha and
investment of VND119 billion (US$7 million). Two years after opening only one
factory has opened in the zone.
The only factory to open, an MDF Wood Processing Factory, has caused distress to
"We can’t stand the smell coming from the factory’s waste water, but we just
cannot do anything," says Tran Thi Huong, a resident of Road no. 3, Dong Luong
Ward, Dong Ha Township.
According to Tran Van Hoa, vice head of the Management Board of Quang Tri
Province Industrial Zones Project, the board is completing the documentation
needed for approval to build a waste water treatment system.
The 100-ha Phong Dien Industrial Complex in Huong Tra District, Thua Thien Hue
Province also lies unused. The project received approval from local authorities
but so far lies incomplete, waiting for enterprises willing to invest in
infrastructure construction. No one has come.
Land previously used by local residents for agriculture and forestry is being
wasted. Although some residents continue to work the land, they worry that land
will be reclaimed if investors move in.
locals need not worry yet, in addition to the already completed 11 industrial
zones in Quang Tri, Gio Linh District has started construction of a 205ha zone
with investment of VND105 billion ($6.2 million).
Dong Le Industrial Complex in Dong Ha Township has 14 registered zones, but only
a handful of investors have come.
Nguyen Van Cong, head of the Finance and Planning Bureau of Huong Tra District
of Thua Thien - Hue Province, says the lack of investment may be due to weather
issues and transport difficulties.
Thua Thien - Hue Province has two seasons -rainy and dry- and is often affected
by storms during rainy season, when roads become impassable.
In June, 2008, the provincial People’s Committee gave approval for the Phong
Dien Sand Processing Industrial Complex. But due to lack of finance, land
clearance and transportation to the complex has not been carried out.
Phong Thu Industrial Complex in Phong Dien District, Thua Thien - Hue Province,
was established in 2004 on 37ha of land, local authorities reclaimed
agricultural land from local residents for the project and invested VND2.6
billion ($150,000) in land clearance and road construction. Le Thanh Bac, vice
head of the Industry and Trade Bureau of Phong Dien District says companies have
so far stayed away.
"Although district leaders have created favourable conditions for investment,
like land tax exemptions, no enterprises have invested," said Bac.
Tu Ha Industrial Complex in Huong Tra District, built four years ago, is in the
same situation. On 26ha of land, and with investment of VND16 billion ($941,000)
few factories have been built.
Many more industrial zones are lying unused, yet provincial authorities are
still approving new zones, wasting money on projects that seemed doomed to
remain vacant. —VNS
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