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Province to scrap industrial clusters

Update: March, 21/2013 - 10:16

HA NOI (VNS)— The Department of Industry and Trade of the southern coastal province of Ba Ria-Vung Tau has proposed to do away with 12 industrial cluster projects which have not found developers, said Tran Thi Huong, director of the department.

In the zoning plan, Ba Ria-Vung Tau has 29 industrial clusters with a total area of 1,443ha. However, only 17 of them have found developers so far, with five getting off the ground.

The infrastructure construction at these industrial clusters is slow, falling far behind schedule, the department said.

Investors have halted expansion or new projects as the demand of tenants declines. Developers of the industrial clusters have also met with many difficulties in capital and site-clearance compensation.

In addition, the drastic increase of land rents has also forced several investors to give up their projects.

The department, therefore, proposed the 12 clusters be eliminated to avoid impacts on residents at the sites.

Five of the 12 clusters are in Tan Thanh District, five in Chau Duc District; and one each in Ba Ria City and Dat Do District.

Their removal would not affect the province's industrial investment and development plan, the department said.

To encourage industrial cluster development, experts have requested the province to assist with land rents if the enterprises could create products which were in demand and had the potential to attract other industries.

The total investment capital of the17 industrial clusters that already have found investors was VND565 billion (US$26 million).

Five have already started infrastructure construction at a total cost of VND549 billion ($26.2 million), with Hac Dich 1, Boomin Vina and Ngai Giao having six secondary projects in operation with a combined cost of nearly VND2.6 trillion ($123.8 million), creating jobs for about 4,000 workers. — VNS


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