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Bà Rịa-Vũng Tàu lures over $450m into IZs in Q1

Update: April, 22/2020 - 15:00

 

The 300ha Mỹ Xuân A Industrial Zone in Bà Rịa-Vũng Tàu Province's Phú Mỹ Town. Photo idico.com.vn

BÀ RỊA-VŨNG TÀU Industrial zones (IZs) in the southern province of Bà Rịa-Vũng Tàu attracted a total investment capital of more than US$450 million in the first quarter of this year.

Of the sum, $360.7 million came from seven newly-licensed projects while the remainder of $97.8 million from eight capital-added ones.

The industrial zones-based enterprises, especially those in textile and garment, footwear and bags have encountered many difficulties as raw materials and accessories for production have been interrupted due to the COVID-19 pandemic in major supplying countries such as China and South Korea.

About 52 per cent of enterprises said they have been ensuring production with their stockpiled raw materials since the beginning of this year, but these enterprises will not have enough raw materials to fulfil export contracts in the following months, according to local authorities.

Notably, 6.8 per cent of enterprises said they completely lack raw materials and will face risks of stopping production next month.

In order to overcome the current difficulties, the firms called for the Government's supporting policies including interest rate reductions, debt freezes and lending limit extensions, as well as loan restructuring.

Bà Rịa-Vũng Tàu is now home to 15 IZs, covering a total area of more than 8,800ha. Of the total, nearly 2,680ha or 71 per cent are occupied, according to the provincial IZs Authority.

Recently, Prime Minister Nguyễn Xuân Phúc has approved the addition of 450ha of industrial, urban area and service industrial zone to the provincial IZs development plan in 2020.

Financed by a joint-venture of Hamek Construction Investment JSC, Quang Anh Real Estate JSC and HVT Group JSC, the IZ will cost about VNĐ7.2 trillion ($309 million). To be developed at the Phú Mỹ Town’s Hắc Dịch District, the zone is expected to lure investment in manufacturing and processing, renewable energy, and processing of clean agricultural products.

The PM also requested the provincial People's Committee to accelerate infrastructure construction and attract secondary projects for the remaining unoccupied industrial land area. 

The committee was also asked to inspect and review the implementation of the Petrochemical Complex Project in Vũng Tàu City and propose solutions to accelerate the project's development while encouraging domestic and foreign enterprises with sufficient financial resources and experience to participate to developing infrastructure of Long Hương IZ in Phú Mỹ Town. — VNS