Ho Chi Minh City When the land lease expires, the Tan Thuan Export Processing Zone, which is over 300 hectares wide, will attract high-tech projects and will not be converted into residential, commercial, or service land.
The information was announced by Mr. Hua Quoc Hung, Head of the Management Board of Ho Chi Minh City Export Processing and Industrial Zones (Hepza) on the morning of January 24, when mentioning the city's orientation for industrial land in the coming time. "The city will retain all industrial land, only convert industries, not eliminate or convert to residential, housing, or commercial areas," Mr. Hung said.
Tan Thuan Export Processing Zone, District 7, December 2022. Photo: Quynh Tran
Tan Thuan is the first export processing zone in Vietnam, established in 1991, in Tan Thuan Dong ward, District 7. It is adjacent to the Saigon River, about 5 km from District 1. The zone has nearly 70% of enterprises in the traditional manufacturing and processing sector. Currently, 195 hectares of land here are used to build factories and warehouses. The land lease of the zone will expire on September 23, 2041.
In addition to its role as a model industrial park, Tan Thuan holds an important position in Ho Chi Minh City's economy . By the end of 2021, the export processing zone attracted 233 investment projects from 25 countries, with a total investment capital of about 2.1 billion USD, creating jobs for more than 60,000 workers.
Previously, the People's Committee of District 7 proposed that when the land lease expires, the city should convert traditional industries in Tan Thuan Export Processing Zone to high-tech development, interspersed with residential land, commercial services...
According to Hepza leaders, in recent times, a number of enterprises in Tan Thuan Export Processing Zone have converted to develop the city's high-tech industries. When the land lease contract expires, if the enterprise has a need to continue, Hepza and the departments and branches will support the conversion in accordance with the city's criteria.
Tan Thuan Export Processing Zone is near the center of Ho Chi Minh City and the new urban area of Thu Thiem. Graphics: Khanh Hoang
Along with Tan Thuan, this year, Hepza will pilot the conversion of 4 more industrial parks: Hiep Phuoc, Cat Lai, Binh Chieu and Tan Binh. Of which, Cat Lai will be converted into a logistics center, Binh Chieu will become a high-rise factory area... The remaining industrial parks also have conversion orientations in the project to develop industrial parks in Ho Chi Minh City.
Hepza and the Institute for City Development Studies are also developing criteria and city support policies for businesses to innovate. Specifically, the Department of Science and Technology will develop policies to support business transformation, the Department of Natural Resources and Environment will take the lead in helping businesses relocate, and the Department of Labor, War Invalids and Social Affairs will be in charge of retraining workers.
Ho Chi Minh City currently has 17 out of 19 industrial parks in operation, with an occupancy rate of nearly 80%, employing more than 252,000 workers. According to the orientation, areas that have not yet leased land will be prioritized to attract investment projects in new directions. In areas that are in operation, the city will have financial plans to support businesses in technological innovation or relocation to promote the transformation process.
Le Tuyet
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