Attracting investment in industrial parks in Lao Cai

Bright Spot

Lao Cai Border Gate Economic Zone is one of the eight key border gate economic zones in the country, invested by the Government, with two industrial parks: Bac Duyen Hai (85ha), Dong Pho Moi (100ha) and one Kim Thanh border gate area (184ha). These are all clean industrial parks, mainly processing, packaging and warehousing for import and export; the occupancy rate of all three industrial parks has reached 87.2%. Tang Loong Industrial Park in Bao Thang district has a planned area of 1,100ha, is a heavy industrial park, the main industries are mineral selection, metallurgy, fertilizer and chemical production.

In total, the border economic zones and industrial parks in Lao Cai province have a total of more than 200 registered investment projects, of which 191 projects are still valid, 11 projects have ceased operations, and are in the process of transitioning land and assets. In 2024 alone, the industrial production value in industrial parks and border economic zones will reach VND 21,155 billion, an increase of nearly 20% over the same period in 2023, reaching 100% of the 2024 plan and equal to 46.3% of the province's total industrial production value.

The industrial parks create stable jobs for nearly 9,500 workers. Units in the three industrial parks have paid nearly VND902 billion in taxes to the State (Tang Loong paid nearly VND683 billion, Dong Pho Moi more than VND178 billion, Bac Duyen Hai 40.6 billion). The common average monthly salary of workers in industrial parks is about VND8 million/person; however, there are units that operate effectively, bringing in higher incomes for workers.

Currently, the industrial park is completing investment in infrastructure to separate wastewater and surface water in the industrial park according to the provisions of the Law on Environmental Protection 2020.
Mr. Pham Ba Son, Deputy Director of Tang Loong Industrial Park Wastewater Treatment Center

At Traphaco Sa Pa Company, operating in Dong Pho Moi and Sa Pa industrial parks, the average income is 16 million VND/employee/month.

Mr. Dang Tien Duc, Deputy Director of Duc Giang Lao Cai Chemicals One Member Limited Liability Company (operating in Tang Loong Industrial Park) said that the unit operates very effectively, currently the factory has more than 2,100 staff and workers, with about 90% of the workers recruited locally. In 2024 alone, according to preliminary statistics, the company's workers achieved an average income of up to 22 million VND/person/month. In addition, the company's welfare fund has organized the construction of hundreds of houses for workers; supported and lent workers money to build houses (at a rate of 100 million VND/person) if they have worked for 5 years or more; regularly supported toxic allowances for workers in the form of money, rice, milk, etc.

However, during the development process, industrial zones in Lao Cai still face many difficulties and shortcomings. According to Mr. Bui Huu Thiet, Deputy Head of Lao Cai Economic Zone Management Board, the adjusted Master Plan for the construction of Lao Cai Border Gate Economic Zone until 2045 has not been approved, so the province has encountered difficulties in implementing the planning of functional areas such as Coc My-Trinh Tuong Industrial Park...

Another difficulty is that the province lacks standard industrial park land to call for and attract investment because planning takes a long time and has not attracted industrial park infrastructure investors. Investors coming to Lao Cai are mainly small and medium enterprises; there are no strategic investors with large capacity, or even insufficient financial capacity; some investors are in a state of "halfway failure", which has caused waste and certain difficulties in the process of calling for and promoting investment in the Border Gate Economic Zone and industrial parks in the province.

Land funds for developing economic zones and industrial parks in the area are very limited, with small areas, not meeting the needs of investors; compensation, support and resettlement costs are large, and there is no clean land to attract investment. Meanwhile, many large, key projects continue and are about to be constructed such as Sa Pa airport, large-scale high-speed train stations, which have forced some industrial parks, typically Pho Moi industrial park, to relocate businesses to serve the construction site clearance.

Prevent and thoroughly resolve environmental pollution

In Lao Cai, Tang Loong is considered one of the country’s key industrial zones, specializing in the production of chemicals, fertilizers and metallurgy. With the characteristics of heavy industry development, this industrial zone has many potential risks of causing environmental pollution.

The issue of waste management and treatment is of great concern to the Management Board and relevant agencies. Solid waste here is mainly slag from electric furnaces of phosphorus factories with the components of CaO, SiO2, P2O5. Of which, 100% of phosphorus slag has been contracted for consumption by the units; Tang Loong Industrial Park has also attracted investment in a phosphorus slag processing project with a capacity of 1,000,000 tons/year (under construction); a hazardous waste treatment project (in the process of site clearance). In addition, to treat gypsum waste of DAP Joint Stock Company No. 2 and Duc Giang Lao Cai Chemical Complex, the industrial park is implementing a gypsum recycling project with a capacity of 850,000 tons/year.

According to Mr. Dang Tien Duc, Deputy Director of Duc Giang Lao Cai Chemical Company Limited, the solid waste generated has been actively contracted by the managing unit and transferred to a unit with sufficient capacity for treatment in accordance with regulations. Other types of waste are stored at licensed dumping sites.

Tang Loong Industrial Park also invested in 2 centralized wastewater treatment plants (one plant with a capacity of 3,000 m3/day and night, has been in stable operation since August 2017; one plant with a capacity of 2,000 m3/day and night is in the trial operation phase).

Mr. Pham Ba Son, Deputy Director of the Wastewater Treatment Center of Tang Loong Industrial Park, said: Currently, the industrial park is completing investment in infrastructure to separate wastewater and surface water in the industrial park according to the provisions of the Law on Environmental Protection 2020.

According to Mr. Vuong Trinh Quoc, Head of Lao Cai Economic Zone Management Board, Lao Cai provincial leaders have directed the Economic Zone Management Board to focus on researching, developing and completing the project to convert Tang Loong Industrial Park from a chemical and heavy industrial park to an ecological industrial park. Developing an ecological industrial park model is an effective solution, helping to optimize the use of resources, minimize negative impacts on the environment, while increasing the competitive advantage for businesses and increasing opportunities to attract investment from major markets around the world.

To develop sustainable industry in industrial zones in Lao Cai, Vice Chairman of Lao Cai Provincial People's Committee Hoang Quoc Khanh said: The objectives of the Resolution of the 16th Lao Cai Provincial Party Congress (term 2020-2025) have identified: Industry is an important pillar; trade-tourism, services are breakthroughs; agriculture, forestry and new rural construction are the focus. Therefore, first of all, the provincial agencies and functional units need to deeply study the policies, directives, resolutions and directions of the Party, State and Government, find creative ways to apply and attract investment to develop border economic zones and industrial zones.

Lao Cai province is striving to complete and submit to the Prime Minister for approval the adjustment of the master plan for the construction of Lao Cai Border Gate Economic Zone until 2045, to have a basis for implementing zoning plans, detailed plans, creating land funds to attract investment; at the same time, completing the detailed plan of functional areas in the Border Gate Economic Zone.

The province also proposed resources to invest in infrastructure of key functional areas (logistics service area; Ban Vuoc sub-border gate area; Ban Qua import and export goods processing and packaging industrial park), creating a relatively synchronous infrastructure system, meeting long-term development requirements; focusing on accelerating site clearance and implementing projects in the border gate area.

Lao Cai province is also calculating the transformation of industrial park models, focusing on innovation, creating a favorable environment for enterprises to apply high technology and digital transformation, increasing competitiveness in the coming time. “One issue that provincial leaders pay close attention to is improving the quality of human resources. The province has requested all levels, sectors, organizations, and localities to have solutions to improve the quality of training to have a stable “input” of human resources, effectively serving industrial parks. In addition, businesses are encouraged to develop training programs to improve workers' skills,” emphasized Mr. Hoang Quoc Khanh.

Source: https://nhandan.vn/thu-hut-dau-tu-khu-cong-nghiep-o-lao-cai-post867423.html