Relocating enterprises outside industrial parks and clusters to the north: Revolution on the way

The policy of relocating production facilities in the southern area around urban areas to the north of the province is a major policy of Binh Duong in order to ensure the sustainability and feasibility in the provincial socio-economic development planning. Obtaining the consensus of enterprises about expanding development space, establishing an ecosystem of specialized industrial zones and clusters, reducing risks in concentrated urban areas, etc. will bring into full play the potential of the province in the new period.

A meaningful step

Nguyen Van Danh, Vice Chairman of Provincial People's Committee, affirmed that the project of converting functions and relocating enterprises into industrial parks and industrial clusters is a major policy to implement Program No.34 of Binh Duong Provincial Party Committee on innovation to attract investment. Completing this project has great significance in the provincial socio-economic development, helping to rearrange the development space, overcome limitations, and exploit the potential of land in the northern districts. The relocation will be able to create the next revolution of Binh Duong when the northern region really transforms into a new industrial and sci-tech center and the southern region into the center of high-quality urban areas.

Industrial parks in the north of the province have synchronous and modern infrastructure, meeting the needs of enterprises for production business development. In photo:  Binh Duong strongly develops industry production, has attracted a great deal of domestic and foreign investment. 

“The policy is to make Binh Duong industry stronger and better. The goal is to ensure the maximum development of enterprises. The relocation should not be understood as simply moving from one point to another, but rather expanding new development space, exploiting the land's potential efficiently. After more than 25 development years, from a purely agricultural province, Binh Duong has strongly transformed the structure into industry - service - agriculture, it is time for us to make a new revolution. Difficulties and challenges from this revolution are inevitable, but it is extremely important. The province wishes to have the support and sharing of difficulties from the business community so that Binh Duong can grow stronger and further,” shared Nguyen Van Danh.

According to Provincial Department of Industry and Trade, the number of industrial manufacturing enterprises located outside industrial zones/industrial zones of the province is very large, accounting for over 71% of the total number of industrial production establishments in the area. Most of these facilities had been built and put into operation before concentrated industrial zones/industrial complexes were established. In which, most industrial production establishments are small and medium-sized. These establishments are distributed not consistent with urban and industrial development planning, scattered and mixed into residential areas and urban areas. Many businesses lack necessary resources for waste treatment, environmental protection and public healthcare... All of this causes difficulties in planning the development of large urban areas, potentially causing unsafety in production, environment and social security issues.

According to Nguyen Thanh Ha, Deputy Director of Department of Industry and Trade, there are currently nearly 3,000 industrial production enterprises of different sizes, are distributed outside industrial zones/industrial complexes in the southern part of the province. The Department of Industry and Trade coordinates with localities to develop appropriate criteria groups and roadmaps, based on ensuring the highest convenience and stability for businesses in the relocation roadmap. In the coming time, Provincial Department of Industry and Trade will coordinate with branches and localities to continue to collect opinions of enterprises about specific criteria, lists and roadmaps, not to cause too great disturbances from personnel to finance. The project on conversion of functions and relocation into industrial zones/industrial complexes identifies four criterion groups for evaluation, including: environmental protection work; consistent with the socio-economic development plannings of the province; the list of manufacturing industries and the sense of compliance with the law.

Ensure harmony of interests

The relocation and conversion of production enterprises into large-scale industrial zones/industrial zones helps avoid causing environmental pollution, noise, fires and explosions in residential areas; and contribute to the adjustment of planning and urban upgrading of the province towards a civilized, smart and modern city. Affected enterprises wish to soon know the list, relocation schedule along with practical and effective support policies to stabilize and maintain production and business.

Enterprises want to convert the function of production land appropriately, ensuring the interests of enterprise. In photo:  Production activities in Long Hung Company (Thuan An City).

According to Huynh Quang Thanh, Chairman of Hiep Long Furniture Company (Thuan An City), the relocation is a major policy of the province after a long development period. Enterprises have also taken steps to prepare for this policy, however, there are two concerning issues. “How will the State create favorable conditions for us to convert functions with local land to ensure harmony of interests, this is a big problem related to assets and land of enterprises. Second, the most worrisome problem is the recruitment stage to ensure production and development”, said Huynh Quang Thanh.

Nguyen Quang Vu, Chairman of Binh Duong Leather and Footwear Association, said that nearly 3,000 businesses and about 588,000 employees will be affected by this project. Leather and footwear is a labor-intensive industry, the relocation must ensure resources for production development. Enterprises will fully support the State’s policy. For the leather and footwear industry, relocation is most appropriate, when forming specialized industrial clusters, businesses will easily support each other to form a supply chain.

Nguyen Thanh Toan, Director of Department of Industry and Trade: The relocation programs and plans are in the final stage of completion and will be notified in advance so that businesses have time for preparations. The Department will also review available industrial zones and clusters, work with investors to arrange suitable land funds for businesses to relocate as well as convert production functions. The Department will also advise Provincial People's Committee to plan a model industrial cluster to pilot the relocation of factories to promote efficiency, then deploy them on a large scale. According to the implementation schedule, Thuan An City, Di An City, Thu Dau Mot City, Tan Uyen Town, and Ben Cat Town will start to implement from 2020-2030. In which, Thuan An city is the locality that must be deployed as soon as possible.

Reported by Tieu My - Translated by Ngoc Huynh