Lack of investment attraction
As of early 2023, although Thanh Hoa still leads the Central region in attracting FDI capital with 164 projects, the total registered capital has reached 14.57 billion USD. However, in recent years, Thanh Hoa has hardly attracted any significant projects. In 2022 alone, Thanh Hoa attracted only more than 70 million USD, far less than the capital attracted by its "neighbor" Nghe An of about 1.5 billion USD.
Accordingly, one of the reasons for Thanh Hoa's slow FDI attraction is the lack of large-scale clean land. In fact, in large industrial centers of Thanh Hoa province (IPs), typically Nghi Son Economic Zone (KKTNS), the progress of site clearance is still limited.
In Nghi Son Economic Zone alone, there are 25 industrial zones, with an area of about 9,057 hectares, including 23 existing industrial zones, however, 19 industrial zones do not have infrastructure investors and 2 warehouse zones KT-1, industrial logistics service zone DV-01.
Image of Nghi Son Refinery and Petrochemical Plant (Nghi Son Economic Zone, Thanh Hoa ).
Meanwhile, with 8 other industrial parks outside Nghi Son Economic Zone, currently only 5 industrial parks have invested in technical infrastructure but are not yet complete. Bai Tranh Industrial Park (Nhu Xuan), Ngoc Lac Industrial Park, Thach Quang Industrial Park, have not yet attracted infrastructure investors. The lack of infrastructure and clean land has made businesses hesitant when intending to choose a location to "build a nest".
Since 2020, many large corporations in the world have come to Nghi Son Economic Zone and industrial parks in this province to survey and explore investment opportunities such as: Exxon Mobil Corporation (USA), Foxconn Corporation (Taiwan, China), Mintal Corporation (Hong Kong), Fangda Corporation (China), INTCO Corporation (Singapore), Chuwa Busan Corporation (Japan), organizations JICA (Japan), KOIKA (Korea)...
In 2022, Thanh Hoa received and worked with many international organizations and large corporations such as: Asian Development Bank (ADB) delegation, World Bank (WB) delegation, Japan International Cooperation Agency (JICA) expert delegation, Indian investor delegation; WHA Group of Thailand, Ramky Group of India, Millennium Group (USA), Compal Group (Taiwan, China), Vaude Vietnam Co., Ltd., JFE Engineering Vietnam Co., Ltd. After many surveys, there is no official information confirming that the above "eagles" will choose Thanh Hoa as the place to "build their nests".
In an interview with Nguoi Dua Tin, the Department of Planning and Investment of Thanh Hoa province said that "clean land" is land that has been recovered by the State but has not been used. When there is a clean land, investors will be able to carry out the project immediately without having to spend time on site clearance, thereby reducing costs and time and speeding up the project's progress. Therefore, the lack of large-scale clean land is one of the reasons why Thanh Hoa province's investment attraction is limited.
However, according to the Department of Planning and Investment of Thanh Hoa province, there are many difficulties in solving the above problem, especially the process of land acquisition, compensation and site clearance. Specifically, there are many difficulties and shortcomings in planning, as well as land use plans, difficulties and shortcomings in compensation land prices and large differences in land prices on the market... causing people to file complaints and protests, affecting the progress of project implementation.
Solution
Regarding the land acquisition and clearance work, recently, at the Workshop on providing comments on the draft Land Law (amended), organized by the Vietnam Lawyers Association, the issue of land acquisition and clearance was mentioned and discussed. At the Workshop, MSc. Phuong Huu Oanh - Former Inspector of the Supreme People's Procuracy, former Head of the Department of Settlement of Administrative Cases, Commercial Business Cases, Labor and Other Matters as prescribed by law, said that in reality, the rights and interests of the parties involved are currently not harmonious and compatible, leading to difficulties and delays in land acquisition and clearance.
More specifically, Ms. Ung Thi Xuan Huong, Ho Chi Minh City Lawyers Association, said that it is necessary to clarify the purpose and criteria for when the state needs to reclaim land. In addition, it is necessary to stipulate specific cases of land reclamation to harmonize the interests between the people and the state because land is a large asset, has important significance and directly affects people's lives.
Solutions on land acquisition and compensation work were proposed at the Workshop on providing comments on the draft Land Law (amended), organized by the Vietnam Lawyers Association.
Regarding the issue of compensation and resettlement support when reclaiming land, Ms. Huong said that this is always an extremely sensitive issue. To solve it, Ms. Huong proposed that when deciding to reclaim land, there should be a plan for compensation, site clearance, and resettlement, thereby helping to synchronize the stages and make the process go smoothly. At the same time, it also avoids the situation of collecting first and then making a compensation plan, which causes the reclaiming process to be prolonged.
Identifying the role of clean land in attracting investment, on February 17, Thanh Hoa province established a Steering Committee to implement the Project on site clearance, investment in construction of resettlement areas and site clearance of industrial parks in Nghi Son Economic Zone (Project 1887).
This is considered a move demonstrating Thanh Hoa province's determination to promptly resolve and accelerate site clearance work in the area. The project's goal is to prioritize site clearance resources and invest in completing essential infrastructure, especially in the Economic Zone, industrial parks and key areas.
Mr. Do Trong Hung (middle), Secretary of Thanh Hoa Provincial Party Committee, Head of Steering Committee 1887, went on a field trip to speed up site clearance progress.
Accordingly, in the period of 2023-2027, Thanh Hoa will allocate a budget of about more than 11,000 billion VND. In which, it will focus on investing in resettlement areas and implementing site clearance in industrial parks in the NSK. The total area that needs site clearance is more than 1,500 hectares.
At the same time, after having “clean land”, Thanh Hoa will proceed to “build nests” by selecting investors with capacity and experience to invest in infrastructure of industrial parks and clusters. Thanh Hoa will also prioritize appropriate budget sources to invest in large-scale industrial parks that meet domestic and international standards.
As Head of Steering Committee 1887, Mr. Do Trong Hung, Secretary of Thanh Hoa Provincial Party Committee, said that in order for land acquisition to be successful, it is necessary to prepare good resettlement sites for households whose residential land is recovered. Land acquisition is directly related to the socio-economic development of the province and the lives of people in the affected areas. Therefore, all levels, sectors and the entire political system need to be deeply aware of their roles and responsibilities, proactively perform well the assigned tasks, and closely coordinate with other members to effectively implement the goals and tasks.
Viet Phuong
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