Investment in industrial parks and export processing zones in the Southern KeyEconomic Zone are showing signs of decline, officials said.
Tran VanLieu, head of the Binh Duong industrial parks management, said this year therehas been a 50 percent drop in investment in the southern province’s 28industrial parks to 500 million USD.
The HCM City Department of Planningand Investment reported a similar situation in the city-based industrial parksand export processing zones, which attracted a mere 16.9 million USD.
Tay Bac Industrial Park in the suburban district of Cu Chi has receivedno investment.
In Dong Nai province, whose IPs are normally popularinvestment destinations, the second phase of the Nhon Trach 3 IP, which is underconstruction, has failed to attract any tenants this year.
Nguyen ThanhBinh, its director, blamed the slowdown on the scrapping of some land – andtax-related incentives for investors developing infrastructure in IPs.
Nguyen Van Thu, deputy director general of Tam Phuoc IP in Dong Nai,said the park, home to 80 percent of local timber processing firms, saw two ofthem shutting down and some others operate at half capacity due to lack ofexport orders from major markets like France and the US.
To helpcompanies in distress, IP authorities are allowing them to defer tax and landlease payments and offering soft loans.
Lieu said IPs are attractingless investment because multinationals and other large companies are busyrestructuring their businesses and going easy on fresh investments./.
Tran VanLieu, head of the Binh Duong industrial parks management, said this year therehas been a 50 percent drop in investment in the southern province’s 28industrial parks to 500 million USD.
The HCM City Department of Planningand Investment reported a similar situation in the city-based industrial parksand export processing zones, which attracted a mere 16.9 million USD.
Tay Bac Industrial Park in the suburban district of Cu Chi has receivedno investment.
In Dong Nai province, whose IPs are normally popularinvestment destinations, the second phase of the Nhon Trach 3 IP, which is underconstruction, has failed to attract any tenants this year.
Nguyen ThanhBinh, its director, blamed the slowdown on the scrapping of some land – andtax-related incentives for investors developing infrastructure in IPs.
Nguyen Van Thu, deputy director general of Tam Phuoc IP in Dong Nai,said the park, home to 80 percent of local timber processing firms, saw two ofthem shutting down and some others operate at half capacity due to lack ofexport orders from major markets like France and the US.
To helpcompanies in distress, IP authorities are allowing them to defer tax and landlease payments and offering soft loans.
Lieu said IPs are attractingless investment because multinationals and other large companies are busyrestructuring their businesses and going easy on fresh investments./.
