Vietnam pulls brake on new IPs to prevent inefficient land use

TN News

Email Print

The Vietnamese government has asked cities and provinces to stop developing new industrial parks unless they can attract more investors.

The urgent task now is to review all plans for industrial parks and economic zones to make sure existing zones are operating at a minimum of 65 percent of their full capacity before more projects are developed, Deputy Prime Minister Hoang Trung Hai said at a conference in Hanoi Friday.

He also ordered provincial authorities to use land as efficiently as possible, reminding them that the government intends to reserve 3.8 million hectares of land for rice farming.

Over the past 20 years, 283 industrial parks have been erected in Vietnam, attracting a combined US$86 billion in local and foreign investment. Together the parks have created 1.76 million jobs and have contributed 23 percent of the country's export revenues, Hai said.

However, he said the parks are not pulling their weight to boost the economy, despite the large areas of land they occupy. There has also been a shortage of housing for many workers, he said.

Only cities and provinces with the best administrative reforms have been successful in luring investors to their industrial parks, Hai said, pledging more support from the government to facilitate investment.

Like us on Facebook and scroll down to share your comment

More Business News