Economic Zones, Industrial Parks Attract High Investment
Aug. 27 – Vietnam’s industrial parks (IP) and economic zones (EZ) have attracted over US$110 billion in foreign direct investment (FDI). Specifically, the investment is broken down into 4,665 FDI projects worth US$70 billion throughout the IPs, and around US$40 billion broken down throughout the coastal EZs. Furthermore, the border EZs accounted for US$700 million worth of investments.
Vietnam currently has 289 IPs occupying over 81,000 hectares in addition to 15 coastal EZs spanning over 698,000 hectares, plus 28 border economic zones. Together, these zones have helped employ over two million people throughout the country.
Further, these areas have earned over US$38 billion in revenues this year, up 16 percent year-on-year, while their combined export turnover currently stands at US$23 billion – good for 45 percent of Vietnam’s total export turnover.
The Vietnamese government is also currently trying to attract more large-scale investment projects, with the IT industry having been targeted for growth since it is seen as being beneficial to the growth of multiple other industries. As such, the government is paying careful attention to corporate income tax and export tariff issues in order to ensure an attractive business environment.
Additional issues that still need to be addressed include the low occupancy rate within the IPs and EZs as well as data for employer management and information development.
Deputy Prime Minister Hoang Trung Hai commented: “The high growth rate coupled with big revenues and high export turnovers recorded by the IPs and EZs demonstrate their important role in [Vietnam’s] national economic development.”
Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.
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