Forum “Vietnam Industrial Park – 2022: Unlocking new investment capital” took place on the morning of August 11 in Ho Chi Minh City, organized by Investor Magazine/Nhadautu.vn with the support of the Ministry of Planning and Investment. organized with the participation of local leaders, leading enterprises in the field of industrial park development.

On the morning of August 11, in Ho Chi Minh City, Investor Magazine/Nhadautu.vn held a forum “Vietnam Industrial Park – 2022: Opening a new investment wave”.

Golden opportunity to welcome new investment wave

Speaking at the opening of the forum, Dr. Nguyen Anh Tuan, Editor-in-Chief of Investor Magazine/Nhadautu.vn, said that after two years of being heavily affected by the COVID-19 pandemic, the Vietnamese economy in the first seven months of this year has recovered positively, increasing GDP growth in the first 6 months of the year reached 6.42%, the macroeconomy was stable, FDI and export activities continued to prosper.

According to the assessment of many experts and some international organizations, Vietnam is facing a golden opportunity to attract a new wave of investment from abroad, especially investment in economic zones and industrial zones. It is possible to point out 4 important factors that create opportunities, which are:

Firstly, besides political stability, Vietnam’s economy is recovering quickly after the pandemic, achieving the highest growth rate in the region; macro balances were ensured, inflation was controlled.

Second, many free trade agreements have been signed and are being effectively implemented, facilitating international trade and investment activities.

Third, the state’s attention to investment in infrastructure development, especially the expressway system, and the participation in investment and development of infrastructure by leading enterprises in the industry, infrastructure conditions for Industrial development for all 3 regions has been improved markedly.

Fourth, Vietnam has clearly defined its orientation and goals to attract foreign investment by 2030. On the basis of Resolution 50-NQ/TW of the Politburo on orientations to perfect institutions and policies. In order to improve the quality and efficiency of foreign investment cooperation by 2030, the Government has issued an Action Program to implement this important Resolution. On June 2, the Prime Minister signed and promulgated Decision 667/QD-TTg approving the foreign investment cooperation strategy for the 2021-2030 period.

zone-contour-nghiep

Forum “Vietnam Industrial Park – 2022: Unlocking a new investment wave” organized by Investor Magazine/Nhadautu.vn on the morning of August 11th. Photo: Reporter.

Accordingly, the goal is to increase by 50% the number of multinational corporations in the group of 500 largest corporations in the world ranked by Fortune Magazine (USA) having presence and operations in Vietnam; By 2030, Vietnam is in the group of 3 leading countries in ASEAN and the group of 60 leading countries in the world according to the World Bank’s business environment ranking.

The strategy also sets out specific solutions to improve the efficiency of foreign investment cooperation, notably the requirement to improve the business investment environment, improve quality, efficiency and competitiveness. of the economy; innovate and enhance competition in attracting foreign investment (foreign investment); developing supporting industries, promoting linkage and spreading; promote internal capacity and take advantage of competitive advantages to improve the efficiency of foreign investment cooperation.

For EZs and IZs, on May 28, the Government issued Decree 35/2022 on Management of Economic Zones and Industrial Parks. The Decree specifically stipulates the construction and development of the system of industrial parks and economic zones; development policies and state management of industrial parks and economic zones, specific regulations on the development of models of economic zones, industrial zones, industrial zones – urban areas – services, eco-industrial parks.. .. The opportunity to create a new wave of investment is huge.

4 big challenges

According to Dr. Nguyen Anh Tuan, despite having many advantages, however, to turn opportunities into reality requires focused investment promotion, attracting new, high-tech, environmentally friendly projects. , in line with the country’s socio-economic development requirements in the new period. At the same time, barriers must be overcome to unleash that wave of investment.

As reflected by investors, these barriers are: Firstly, administrative procedures are cumbersome and overlapping, the implementation time is too long, which increases costs and time, reducing the efficiency of investment projects. ;

The second is that the site clearance for newly established IPs still has many problems and lasts a long time;

The third is the issue of law enforcement, especially investment incentives, tax refund for export processing enterprises;

Fourth is the problem of shortage of high-quality labor supply for industrial zones, housing problems, social welfare for workers working in industrial zones and economic zones. Many investors also suggested that Government agencies and local authorities need more timely support in solving problems related to project implementation of infrastructure investment enterprises. and enterprises investing in IZs and EZs.

Faced with the above-mentioned favorable factors and challenges, in order to comprehensively analyze and evaluate the potential, opportunities and connection of investment in Industrial Parks and Economic Zones in the new context, identify barriers and propose solutions to facilitate the flow of investment capital, especially high-quality FDI into Industrial Parks – Economic Zones, under the direction and support of the Ministry of Planning and Investment and the Association of Foreign Investment Enterprises. In addition, today Investor Magazine/Nhadautu.vn organizes Vietnam Industrial Park Forum 2022 with the theme “Opening a new investment wave”.

The forum was attended by representatives of leaders of the Ministry of Planning and Investment, the Ministry of Construction, the Ministry of Natural Resources and Environment, the Central Economic Commission, the Government Office, the General Department of Taxation, the People’s Committees of some provinces and cities. City, EZ Management Boards, economic experts, business associations of countries, international investment consulting companies, industrial park infrastructure investors and domestic and foreign investors.

The organizers hope that delegates and experts will focus on analysis, evaluation and open discussion to objectively assess opportunities, attract investment, as well as point out challenges, barriers and issues. propose solutions to open the flow of FDI into Vietnam’s industrial zones in the coming time.

Policy recommendations and solutions from this Forum will be summarized and reported by the governing body of the Investor Magazine – Foreign Investment Business Association to the Prime Minister, the Ministry of Planning and Investment and other agencies. concerned authorities.

Editor-in-Chief of Investor Magazine/Nhadautu.vn informed that the main contents of the forum will revolve around:  Opening up high-quality FDI inflows into industrial zones; factors that can create a new wave?; new points of Decree 35/2022/ND-CP on policies to encourage the development of auxiliary industrial zones, specialized industrial zones, high-tech industrial zones, ecological industrial zones and urban-service industrial zones; specialized industrial parks to attract foreign enterprises; investment opportunities in industrial zones in provinces and cities;

What types of industrial parks are targeted by domestic and foreign enterprises in Vietnam?; the need to develop supporting industries – opportunities to attract investment in industrial zones; needs and development prospects of supporting industries; capacity of enterprises in supporting industries in Vietnam and the issue of linkages with foreign countries; policies to encourage investment in the development of supporting industrial parks; trend of investment, development and business of industrial park infrastructure of large corporations; IPs are welcoming supporting industry projects; the issue of labor supply in industrial zones; recruitment support policies for supporting industry enterprises…

The forum is an opportunity to introduce and promote the potential, opportunities and policies to attract investment in industrial zones of provinces and cities.

Building a transparent industrial zone and economic zone investment environment

Speaking at the forum, Deputy Minister of Planning and Investment Tran Quoc Phuong said: In recent years, on average, FDI capital in industrial parks and economic zones accounts for about 35-40% of the total registered FDI capital increase annually. more of the whole country; If only in the field of processing and manufacturing, FDI capital in industrial parks and economic zones accounts for 70-80% of the total registered capital of the country.

At the same time, industrial parks and economic zones have really become key areas to attract investment capital and large projects at home and abroad. Canon, LG, Sumitomo, Foxconn, VSIP…

Many domestic enterprises, which started out as investors in developing and trading industrial park infrastructure, have developed into multi-industry and multi-field investment corporations, gradually reaching out to foreign markets, contributing to affirming positioning of Vietnamese enterprises in the international arena such as Phu My 3, Viglacera, Truong Hai, Becamex, Sonadezi, Kinh Bac… These are remarkable contributions of industrial parks and economic zones to investment attraction. investment and business development.

tran-quoc-phuong

Moreover, enterprises in industrial parks and economic zones play an increasingly important role in total budget revenue, creating jobs, contributing to improving competitiveness, accelerating the process of industrialization and modernization. and promote Vietnam’s integration into the world economy, especially the participation in global value chains to improve the quality of human resources, create a driving force for technological innovation and enhance the competitiveness of Vietnam’s economy. domestic company.

However, the development of industrial parks and economic zones in breadth faces difficulties because labor, land and natural resources have reached the limit while labor productivity and resource exploitation efficiency are not high; harmonization between economic development and requirements on environmental protection and social security has not been ensured; maintaining the competitive advantages of industrial parks and economic zones in the context that tax and land incentives tend to decrease; linkage and cooperation in industrial production in industrial parks and economic zones of Vietnam is still limited.

Therefore, the development of industrial parks and economic zones needs policies to take advantage of the industrial revolution 4.0 and improve the efficiency of foreign investment attraction and cooperation according to Resolution No. 50-NQ/TW. Resolution XIII of the Party recently approved the country’s development orientation and vision to 2025, 2030 and 2045 with the goal of continuing to accelerate the industrialization and modernization of the country, By 2025, the proportion of processing and manufacturing industry in GDP will reach 50%. The orientations and guidelines of the Party and the State’s policies in recent times have set requirements on improving the efficiency of industrial parks and economic zones in the direction of sustainable development and innovating the development model. development and land use efficiency. 5 central orientations

The concretization of guidelines and policies on industrial parks and economic zones, especially perfecting institutions and policies to ensure that industrial parks and economic zones continue to play an important role in the development of economic zones. implementation of socio-economic development goals is an urgent requirement.

tran-quoc-phuong1

Deputy Minister of Planning and Investment Tran Quoc Phuong speaks at the forum.

As the focal agency, advising on state management of industrial parks and economic zones, the Ministry of Planning and Investment has been and continues to perform tasks and solutions on industrial park development. , economic zone, which defines a number of development orientations as follows:

Firstly, the development of industrial parks and economic zones is an important model and solution to promote the process of restructuring the economy and renewing the growth model, towards industrialization of the country in the current direction. modern and harmonious between regions, industries and professions.

Second, renewing and diversifying types of industrial parks and economic zones to adapt to domestic requirements and international economic integration; ensure the attractiveness and international competitiveness of industrial parks and economic zones in attracting and cooperating with investors, in which innovation models of development, advanced management methods, and innovation are promoted. in industrial parks and economic zones as the foundation.

Thirdly, developing infrastructure and promoting production and business in industrial parks and economic zones must ensure synchronization and harmony in terms of economy, society and environment; closely associated with ensuring national defense, security, order, safety, social security and taking care of the material and spiritual life of employees; implementation of international commitments on green growth and sustainable development.

Fourth, to attract investment in industrial parks and economic zones selectively, in accordance with the requirements and development potential of the locality and region; prioritize investment projects with modern technology, cooperation in technology transfer, quality assurance, efficient use of resources and labor, high added value and participation in global value chains. , adapting to the Industrial Revolution 4.0.

Fifth, strengthen the leadership of the Party, the effectiveness and efficiency of the State’s management, the pioneering and creative role of trade unions at all levels in protecting the rights of workers, especially in the process of implementation of new generation free trade agreements; the role of criticism and supervision of political and social organizations; promote the dynamism and efficiency of investors, enterprises and all levels and branches in the development of industrial parks and economic zones.

Recently, the Ministry of Planning and Investment has advised the Government to issue Decree No. 35/2022/ND-CP dated May 28, 2022 regulating the management of industrial parks and economic zones, in which supplementing new types of industrial parks and economic zones, abolishing the procedures for establishing industrial zones to reduce administrative procedures, and supplementing and amending a number of regulations to improve the efficiency of land use in the development of zones. industrial and economic zones.

In the coming time, the Ministry of Planning and Investment will work with other ministries, branches and localities to continue researching and perfecting mechanisms and policies and accompanying investors to build the business investment environment of the area. Industrial zones and economic zones are becoming more and more transparent and convenient.

 dien-dan1

Vietnam Industrial Park Forum – 2022 attracts a large number of participants.

SESSION I: VIETNAM BEFORE THE OPPORTUNITY TO RECEIVE NEW Wave of INVESTMENT

Opportunity to attract FDI into Vietnam after the COVID-19 pandemic

Presentation:  “Vietnam has the opportunity to receive a wave of FDI after the COVID-19 pandemic”, Mr. Nguyen Anh Tuan, Deputy Director of Investment Department Foreigners (Ministry of Planning and Investment) emphasized:

In the two years that were heavily affected by the COVID-19 pandemic, business and investment activities of enterprises faced many difficulties. In that context, Vietnam has focused on promoting internal resources, realizing the “dual goal” of preventing the COVID-19 epidemic, while recovering and developing the economy, and achieved many positive results.

In the post-pandemic period, attracting FDI into Vietnam is facing many opportunities to receive a new wave of investment.

Firstly, with the effective control of the COVID-19 epidemic, maintaining stable production and business activities, Vietnam is still considered a safe, potential and attractive investment destination in terms of diversity policy. supply chain, global production of investors.

Second, Vietnam’s international position is being enhanced along with the active external economic activities of senior leaders of the Party and State, and international integration is deepening.

Thirdly, with the high attention of the Government and the participation of the whole political system, the consensus of businesses, the business investment environment of Vietnam is becoming more and more open, creating favorable conditions for business and investment. the investors.

Fourth, the advantage of human resources and the domestic market with nearly 100 million people with a rapidly growing middle class, creating a market with large purchasing power is attracting the attention of foreign investors.

Fifth, domestic enterprises have the opportunity to participate deeply in the global supply chain. In addition, Vietnam has the opportunity to anticipate the trend of shifting the global production chain to attract foreign investment to develop some new fields in Vietnam.

nguyen-anh-tuan1

Mr. Nguyen Anh Tuan, Deputy Director of Foreign Investment Department (Ministry of Planning and Investment)

However, besides the opportunities and advantages mentioned above, Vietnam also has many difficulties and challenges that need to be overcome to receive the new wave of investment.

Firstly, the competition to attract foreign investment among countries in the post-COVID-19 period will become increasingly fierce due to the decrease in the supply of foreign investment while the demand for attracting foreign investment in economic recovery increases.

Second, the fact that countries are moving towards the application of a global minimum tax may have far-reaching effects on FDI activities in Vietnam.

Third, mechanisms and policies on foreign investment are still overlapping, the state management of foreign investment in localities is still not coherent and not in the right direction, leading to a lack of systematic and effective foreign investment attraction. fruit is not high.

Fourth, technical and social infrastructure is not synchronized, logistics service capacity is not high, transportation costs are still high compared to other countries in the region.

In addition, there is a shortage of skilled labor force, especially high-tech workers, in new industrial sectors. Human resources of domestic enterprises are still limited and cannot meet the requirements. Finally, the domestic supporting industry has not yet met the self-sufficiency in the production chain.

From the above analysis, there are a number of solutions to enhance investment attraction in the new context, including: Perfecting institutions and policies to attract foreign investment in a balanced and reasonable manner among regions and regions; developing supporting industries, promoting linkage and spreading; Improve the quality of human resources; modernize and diversify investment promotion, improve the effectiveness and efficiency of state management of foreign investment.

“There is a saying “one piece when hungry is equal to one packet when full”, we appreciate the cooperation and contribution of the business community, especially foreign businesses. There is also a saying “want to go fast”. If you go alone, you still want to go far, let’s go together”, because we have friends who are foreign investors, so we hope that we will go together, go as far as possible to develop together. We will create all conditions for Vietnam to become a second home for foreign investors,” said Mr. Nguyen Anh Tuan.

Incentives on green credit to support businesses

Mr. Tran Quoc Trung, Deputy Director of Economic Zone Management Department (Ministry of Planning and Investment) presented a presentation “New industrial park models in the Government’s Decree 35/2022”: Currently, Vietnam records about 85% of industrial parks operating under the multi-industry and multi-field model, 15% under the specialized, supporting, ecological, and urban service industrial park models. .

tran-quoc-trung

Mr. Tran Quoc Trung, Deputy Director of Economic Zone Management Department (Ministry of Planning and Investment).

Currently, we do not have any industrial park that meets the standard of eco-industrial park. On the basis of 30 years of implementation and development, Decree (ND) 35 has developed new regulations. The Decree introduced two new models: specialized industrial parks and high-tech industrial zones; amending and supplementing eco-industrial parks, and modifying more specifically service-model industrial parks. Industrial – urban – service zones include industrial, urban and service functional zones.

In which, the industrial park has the main function, the urban – service area has the function of supporting, providing services, public and social utilities for the industrial park. This Decree stipulates that urban service industrial zones must meet the requirements of not falling under pollution levels 1 and 2 according to the law, urban areas do not account for more than 1/3 of industrial zones. During the construction of infrastructure, it is possible to separate projects, follow their own order and procedures. If the overall implementation, then related to investor selection bidding.

In this Decree, we added a specialized industrial park, investing in a certain industry. In Decree 35, adding high-tech industrial parks, attracting more high-tech industries and information industries with standards to ensure the attraction and support of 65% of supporting industries.

This Decree also defines more specifically on the basis of registered and committed investors in the process of implementing industrial park infrastructure. The Decree adds that investors implementing/establishing new IPs must meet new criteria such as the need to set aside a proportion in the project planning to attract supporting industries and high technology.

At the same time, supplementing in the Decree, the regulations on inspection and supervision after being granted the investment certificate ensure that the construction investor is like registering the dossier. For ecological industrial zones, Decree 82 made comments on the problems encountered in industrial zones. The use of resources (waste sources) is very wasteful. The production and business have a negative impact on the residential community.

Decree 35 presents more clearly the construction of eco-industrial parks, in which a more specific definition is given to eco-industrial parks with enterprises carrying out cleaner production activities and implementing industrial symbiosis (this enterprise waste is the input of enterprises). and reused according to the current circular economy).

Statistics have shown many benefits of eco-industrial parks such as implementing environmental commitments, reducing environmental risks, reducing risks of using water materials, meeting COP26, businesses improving workers’ health, sharing Sharing raw materials in production and business, the community has a better living environment….

tran-quoc-trung1

Decree 35 supplements the People’s Committee to have more supportive mechanisms and policies on technology transfer in industrial zones to ensure industrial symbiosis, policies for the Industrial Park Management Board to have non-business units to provide information to help enterprises. connect and realize cleaner production. For enterprises and industrial zones, Decree 35 sets criteria for at least 20% of enterprises in industrial zones to use resources efficiently, produce cleaner production, etc. For infrastructure investors, the ratio of land for traffic and trees is 25%, compared to the previous standard of 21%.

This is the solution as well as the standard set for enterprises to build an ecological industrial park from the very beginning. At the same time, there are preferential policies on green credit, infrastructure incentives, green credit and green bonds, providing supporting information and helping businesses transfer technology.

Industrial park attracts foreign enterprises

Mr. Ta Quoc Bao, Deputy General Director of Phu My 3: Intensive Industrial Park: is the only specialized industrial park in Vietnam approved and established in 2014.

Dr. Nguyen Anh Tuan: We have just heard 3 presentations and speeches from the Deputy Minister of Planning and Investment. Many thanks to the speakers. To move to the discussion session, to introduce more about the potential of calling for investment of a locality that is being interested by many investors – Long An, and at the same time reflect the barriers and obstacles that the locality is facing. , would like to invite the first comments of Mr. Nguyen Thanh Thanh, Head of Management Board of Long An Industrial Park.

The slow time for issuance of investment certificates makes it difficult for businesses

Mr. Nguyen Thanh Thanh: Up to now, the whole province of Long An has 37 industrial zones with a total area of ​​12,285.48 hectares. Of which, 35 industrial zones have been added by the Prime Minister to the development planning of Vietnam’s industrial zones with a total area of ​​11,944.98 ha and 02 industrial zones are located in Long An border gate economic zone with a total area of ​​340.5. ha. The province has attracted 1,736 projects, including 836 FDI with a total capital (newly granted and increased) of USD 5.499 billion and TN 900 with a total capital (newly granted and increased capital) of VND 109,384 billion.

In which, there are 594 projects to rent factories with a total factory area of ​​about 238.24 hectares. Up to now, there are 1,565 enterprises operating in the industrial park, including 628 FDI enterprises, with 178,509 employees, including nearly 3,000 foreign workers. In 2021, enterprises in industrial zones contribute VND 5,171 billion to the provincial budget, an increase of VND 1,300 billion compared to 2020; In the first 5 months of 2022, 2,823 billion VND has been paid to the provincial budget.

nguyen-bar-bar

Mr. Nguyen Thanh Thanh, Head of Long An Industrial Park Management Board.

Long An has compensated for site clearance 7,120.68 hectares, accounting for 70% of the total land area of ​​industrial zones approved for investment policy or issued with investment certificates (in addition, there are 599 hectares of industrial land that has been approved for investment policy or issued with investment certificates. residential, housing for experts and workers).

The current problem is that the land clearance work involving 100,000 households and 100,000 people, changing their lives, is an extremely complicated and delicate thing. The Standing Committee of Long An Provincial Party Committee has established a topic on land clearance, propaganda and mobilization of people, and development of compensation plans. Option: Arrange resettlement and preferential prices for people. When no agreement can be reached, coercive measures will be taken. But this is also very rare. Therefore, Long An has a clean land fund to attract investment in industrial zones.

The expansion IPs apply for investment policy, according to the provisions of Decree 35 dated May 28, 2012, 60 days. In Long An, the investment certificate is issued in 1 day, if the business is reputable enough. However, the reality is that it takes place over a year, causing difficulties for businesses. The time to lease land for secondary investment is still more than 30 years, not 50 years, it takes more time for site clearance and infrastructure investment, there are areas with only less than 30 years of use time, making it difficult to earn income. attract investment.

Dr. Nguyen Anh Tuan: Could you please clarify more about the investment licensing procedure for nearly 1 year, at which stage is the longest. Long An site clearance has such a situation, can you tell me if the land fund for industrial park development is still large and which field will Long An give priority to calling for investment?

Mr. Nguyen Thanh Thanh: Currently, the procedures for approving investment policies, businesses will submit documents at the Ministry of Planning and Investment, instead of submitting to the locality as before. The Ministry will consult relevant agencies, localities to explain, investors explain and many issues that make the project last 1 year or more than 1 year.

Currently, Long An’s clean land for industrial use is over 2,500 hectares, eligible to call for investment of 800 hectares. The rest is in the area of ​​investment promotion. Advantages and strengths of Long An are supporting industries, prioritizing industries that are less labor-intensive and environmentally friendly. Long An is conveniently located close to Ho Chi Minh City, has many border gates, and a seaport at the gateway to the Mekong Delta, with conditions for traffic connection and infrastructure synchronization.

But the local land is still weak, so the investment rate is high, the rental price is high, and the secondary investment is high, which makes it difficult to call for investment in Long An. However, because many businesses have invested in neighboring localities, Long An still has the opportunity to attract investment.

Dr. Nguyen Anh Tuan: How do you forecast the prospect of attracting investment in Long An’s IPs in the coming years?

Mr. Nguyen Thanh Thanh: Long An has invested in complete infrastructure and is eligible to call for investment about 800 hectares, the rest is being promoted in the process of infrastructure investment. Currently, Long An is giving priority to calling for investment in industries that use less labor and industries with less environmental pollution. We have the favorable conditions of bordering Ho Chi Minh City, the alley of the Mekong Delta, having a seaport and an international border gate, so it is convenient to attract investment.

However, Long An has a weak ground, so the investment rate is high, the investment price, the rental price is high, so it is difficult to implement compared to the surrounding area. It is forecasted that in the first 6 months of the year, industrial land for lease will reach 125 hectares, FDI capital attracts 350 million USD, up 30% over the same period, attracting 12 trillion VND, up 80% over the same period. After the pandemic, investors looked to Long An like Lotte, Coca-Cola, they were interested in investing in cold storage, logictics.

I think that in the coming time, with many favorable conditions, Long An will better attract investment.

Dr. Nguyen Anh Tuan: Dear Mr. Nguyen Dinh Tho, Director of the Institute of Natural Resources and Environment Strategy (Ministry of Natural Resources and Environment). Just now we heard a very specific recommendation, many investors in fact do not maintain production and business activities for 50 years. The 50-year regulation on industrial park licenses in many places when calling for businesses to invest is only 30 years. Therefore, it is necessary to change policies so that investors who build factories in industrial zones can ensure their benefits.

Can you give your opinion on this recommendation? Also related to the field of natural resources and environment, the Department of Economic Zone Management recently introduced new industrial park models, including the ecological industrial zone model, please evaluate the development prospects and criteria that the Ministry of Natural Resources and Environment is building. built to be able to create transparent elements like Decree 35?. Please let me know, when will the draft green classification be able to consult businesses and investors?

Classification of green credit facilities and green bonds

Mr. Nguyen Dinh Tho: According to the Land Law, industrial zones, urban areas, other projects… the time of land allocation and lease of land according to investment projects. Therefore, industrial park development projects are determined at the first time when the industrial park is formed. Understanding the interest of investors to ensure the right to rent land in industrial zones, the Land Law allows the land lease term to expire, enterprises still have assets on the land, and if they need it, the lease period can be extended.

According to the revised Land Law, under the direction of the Central Government, most forms of land lease change from one-time rental to annual payment. Therefore, the Ministry of Natural Resources and Environment allows the land lease right to be recognized almost as a property right, which can be transferred or mortgaged, so the remaining land lease rights of 20-30 years are valid to protect investors. .

The law affirms that if the time limit is short, it is possible to re-establish an investment project, and please extend the time. There are forms of environmental incentives so that investors can receive support from the Government of Vietnam and the international community. According to Vietnam’s commitment, we are committed to reducing emissions by 9% without the support of the international community. Applying the circular economy model and integrating the circular economy in the ministries and agencies’ strategies, in which the IZ has a special land use regime, and enjoys green bonds, green credits, etc.

Mechanism to support large ecological industrial zones. The Ministry of Natural Resources and Environment develops a green classification of the basis for granting green credits, green bonds, and pharmaceuticals, which are issued before December 2022 and are the basis for the Government and international organizations to provide financial support and loans. capital, credit… for units participating in eco-industrial parks. Currently, according to the update, the Ministry of Natural Resources and Environment has consulted the draft green classification in HCMC. This week, it is expected to be posted on the ministry’s portal to collect opinions from people and businesses.

Before December next year, the Government will issue a national circular economy plan, stipulating the value chain from mining, processing, production, consumption, classification, treatment, collection, reuse, waste, etc. to take advantage of international and Vietnamese commitments in the coming time.

Dr. Nguyen Anh Tuan: Returning to the factors affecting the investment wave, Dr. Nguyen Duc Kien, Head of the Prime Minister’s Economic Advisory Group, do you agree with the opinions that the Department of Foreign Investment has just given about macro, advantages and challenges in attracting investment? Can you always assess Vietnam’s economic growth prospects this year, next year and the years to come?

Third quarter growth rate may exceed 8%

Dr. Nguyen Duc Kien: First of all, adding an opinion about Mr. Nguyen Dinh Tho on green development. In 2021, the first months of 2022, the Government piloted a green cycle project. For example, the story of the Management Board of Thua Thien Hue Industrial Park has a very new roof voltage, has a suitable selling price and is accepted by the US.

nguyen-duc-kien

Mr. Nguyen Duc Kien, Leader of the Prime Minister’s Economic Group answered questions at the forum.

Therefore, it is expected that the management boards of the industrial zones of the provinces and localities will closely follow the information publicity of the ministries because this is the information channel following the direction of the Government. First, explain Decree 35, investment environment of industrial zones. The macroeconomic information is completely accurate. The government concluded on August 4 on four key tasks. First, stabilizing inflation at 4%, energy prices in the past 5 periods have all decreased.

Second, we have adjusted some taxes and fees, and at the same time, the Government has focused on disbursing public investment, especially in infrastructure.

Third, we will have more policies to almost force FDI in association with domestic enterprises, serving the development of foreign investors. Help reduce product prices when imported into Vietnam Finally, the Government continues to support Vietnamese enterprises, through credit interest rates, especially a package of VND 40,000 billion

Economic forecast in 2022 and 2023 is that the growth rate of the third quarter is relatively high, possibly exceeding 8%, but by the fourth quarter of this year, it may decrease due to political conflicts in the world.

One of the other things that is guaranteed is social security, which is very beneficial for industrial zones. The government will keep inflation in 2022 below 4%. It is forecasted that for the whole year of 2022, if the input conditions (price, market, political situation…) are the same as in the second quarter, the growth rate will be 6.5-7%.

Dr. Nguyen Anh Tuan: Thus, you can be assured of the inflation story, saying it is not completely convincing, but according to Mr. Kien, the ability to control inflation is realistic. Such forecasts for the third and fourth quarters, the forecast of economic growth for the whole year, are quite consistent with the assessment of the Ministry of Planning and Investment. Next, I would like to invite Mr. Nguyen Cong Ai, Deputy General Director of KPMG who is a unit that regularly contacts foreign investors. There are two things I would like you to clarify. Firstly, many experts believe that Vietnam is facing a golden opportunity to attract a new wave of investment. Do you agree with this opinion.

Secondly, competition to attract FDI has changed when not only is competition among developing countries as before, but even developed countries are competing fiercely, even even want to pull their national enterprises to domestic production. You can assess how this competition affects FDI flows to Vietnam, and where Vietnam is in the eyes of foreign investors. He is optimistic that FDI into Vietnam in general in industrial zones and economic zones in particular.

Optimistic prospect of attracting FDI into Vietnam’s industrial zones and economic zones

Mr. Nguyen Cong Ai: Through contact with foreign investors (foreign investors), I found that despite economic difficulties in 2022 in certain areas, the concerns of Foreign investors are still increasing for the Vietnamese economy, so it can be affirmed that Vietnam is still an attractive destination for foreign investors.

But if I call this a golden opportunity, I still have caution, when the economy goes into recession and it is likely that in 2023, the US and European economies will go into recession, which will affect all sectors. investment sector and including investment movement between other countries. Now investment competition is not only between developing countries but also with the US and Europe.

Currently, we are the most attractive destination for North Asian and East Asian countries such as Japan, Korea, and Taiwan. In this period, I think we should focus on investment quality, environmental friendliness, high-tech investment and not necessarily very big investors but maybe Asian investors, this is probably the next trend.

Regarding investment in Long An, although the land rent is high, KPMG’s discussion with foreign investors shows that they are now interested in investment conditions and supporting technologies. Therefore, if Long An develops an international seaport, providing urban services, it will create good conditions, even with high rents, they are still interested, because they value quality over price. I am extremely optimistic about the prospect of attracting FDI into Vietnam’s industrial zones and economic zones.

Besides, I think that we should carefully consider world conditions when going into recession, need to strive to be competitive, optimistic in caution.

Dr. Nguyen Anh Tuan: I see a target that the Ministry of Planning and Investment mentioned earlier is to attract 50% of the 500 largest global corporations ranked by Fortune Magazine (USA). However, according to Mr. Nguyen Cong Ai’s opinion, it is not necessary, please give feedback from Mr. Nguyen Anh Tuan, Deputy Director of the Department of Foreign Investment.

Don’t just look at the pink for investment opportunities

Mr. Nguyen Anh Tuan: We all agree. Firstly, in the current context, I am optimistic about foreign investment. In addition, the Prime Minister’s Decision 667 on the foreign investment development strategy for the 2021-2023 period, emphasized the goal of increasing the number of corporations in the Fortune top 500 by 50% as the goal of bringing back the eagles for them to lead and pull. partners in Vietnam.

 anh-tuan

Mr. Nguyen Anh Tuan talks about investment opportunities.

It is true that we should not just look at the opportunity to attract investment. Everything has its downside. We also share the same competition to attract investment from developed countries, which is a regulation sooner or later. Because developed countries want to attract investment because they want to reduce the risk of being too passively dependent on unstable markets.

But, if we affirm that Vietnam is stable, there is no reason that at all costs the above countries will attract to their country. Increasing attraction from developed countries is right, but we need to make sure that developed countries avoid feeling disadvantaged when cooperating with us.

One of the highlights is to develop supporting industries, to create an ecosystem so that investors in Vietnam don’t care about anything else, just focus on investing. Vietnam is like a “resort” with enough amenities and facilities for investors. Thus, even though the price is high, they still accept to stay in Vietnam.

Dr. Nguyen Anh Tuan: Mr. Nguyen Anh Triet, Head of Ba Ria – Vung Tau Industrial Park Management Board, this morning there is an opinion that is repeated quite a lot, which is to attract selective investment, priority projects on quality. from science and technology, linking domestic and foreign businesses, being environmentally friendly…  From the practice of attracting investment in Vung Tau, he found that the quality indicators have a great influence on the quantity targets in the project. investment attraction, what is your forecast about investment attraction this year and the next years?

Attracting high quality environmental investment

Mr. Nguyen Anh Triet: With the potential of Ba Ria – Vung Tau, the province has set the goal of attracting investment, high quality in environment, prioritizing the development of high-tech material industry. basic material. Experiencing the recent COVID-19 epidemic, supply chains around the world were disrupted.

triet

Mr. Nguyen Anh Triet, Head of Management Board of Ba Ria – Vung Tau Industrial Park

Therefore, we see that the target set by Ba Ria – Vung Tau province is correct. Currently, many investors have come to us. The general forecast for the development of the whole country is very positive. Particularly, Ba Ria – Vung Tau has had more than 10 investors come to learn and sign commitments, expected to attract 1.3 billion USD by the end of this year.

Vietnam’s industrial real estate potential is huge

Dr. Nguyen Anh Tuan: The last question of the opening discussion session I would like to be addressed to Ms. Bui Nguyen Huyen Trang, General Director of Cushman & Wakefield Vietnam. Can you tell us about the prospects of industrial real estate in the coming time and what needs to be done to develop this field?
Mrs. Bui Nguyen Huyen Trang: The potential for industrial real estate development in Vietnam is huge. In Long An is 12,000 ha, accounting for 40% of the 25,000 ha of the total supply in the southern industrial zones.

Factors that affect include the potential of Vietnam’s economy to grow by 8% this year, our growth capacity may be equal to that of South Korea, Japan or Australia because of its position as a center of production. export.

In which, the North is the extension arm of the world’s manufacturing factory, while the South is a position of a global transit production center. In addition, it is forecast that its port capacity from 2030 onwards will generate nearly 38 million peppers, equal to Singapore.

However, because the South will be the center of logistics production in the region and globally, but Tan Son Nhat airport is overloaded, so hopefully in the future when Long Thanh airport has completed the hardware. (operational part) will create an effect to attract investors.

**********

<3 Conditions to make production green

Professor-Dr. Nguyen Mai, Chairman of the Association of Foreign Investment Enterprises presented the presentation “Economic zones, industrial zones with green growth and digital economy: Requires challenges and solutions”:

First of all, I would like to talk more about challenges and opportunities, in the world there are many unpredictable factors such as oil price movements, food prices, basic raw material prices, inflation situation, conflicts. political geography. I think when commenting on economic growth, inflation should be optimistic but very cautious. Therefore, I recommend to have many scenarios, to actively respond to different situations, and to create solutions to deal with bottlenecks to turn opportunities into reality.

I think that the present and the future need a more scientific approach, need to properly understand the problem that we are moving towards an economy that is completely different from the economy that previous generations lived. We have the conditions to go green in production and green in consumption.

In which, greening production is implementing a clean industrialization strategy through reviewing and adjusting existing sectoral plans; economical and efficient use of resources; encourage the development of green industry and green agriculture. Consumption greening is changing lifestyles towards sustainable consumption; combining traditional beautiful lifestyle with modern civilized means.

 nguyen-mai

GS-TSKH. Nguyen Mai, Chairman of the Association of Foreign Investment Enterprises.

In terms of digital economy, this is all economic activities based on digital platforms, using digital technology and data to create new business models. Based on the foundation of many new technologies, the core is digital technology, artificial intelligence (AI), big data (Big Data), blockchain (Blockchain), cloud computing (Cloud Computing), Internet of Things objects (IoT)).

Around the world, the digital economy is growing very fast, becoming the key for some economies to go global. The scale of Vietnam’s digital economy in 2020 will reach 14 billion USD, contributing 5% of GDP and ranking second in ASEAN in terms of digital economic growth after Indonesia. However, in order to achieve the goal of the digital economy accounting for 20% of GDP by 2025, it is necessary to further accelerate Vietnam’s transition to a digital economy with a system of synchronous solutions from the perspective and perception of the community. contracts, perfecting the legal environment, building digital infrastructure, training human resources for the digital economy.

After more than 30 years of establishment and operation, our country has appeared many economic zones, ecological industrial zones, industrial – urban – service zones. From the models of ecological industrial zones, Industrial – Urban – Service zones have been successful in many localities, it is necessary to summarize into a model of the whole country for each province and city to apply creatively in accordance with the characteristics of the economy. local socio-economic.

The time factor in the digital transformation period is an extremely important factor, otherwise, the opportunity for economic zones and industrial zones will be missed to make an important contribution to the 2021-2030 development strategy, aiming to basically complete it by 2030. industrialization with a growth model of higher efficiency, quality and sustainability, with a GDP per capita of about 12 000 USD/year, people have a prosperous material life, a good spiritual and cultural life Beautiful, healthy living environment.

The lessons of Vietnam over the past 30 years need to be drawn not only from success, but also from failure in terms of time for state agencies, businesses and people to realize new challenges and opportunities when switching to business. Digital economy, digital government, shortening time, gradually narrowing and catching up with the level of leading countries in ASEAN, with ecological industrial zones, modern Industrial – Urban – Service zones, many large economic groups among the top 500 companies in the world.

 version 2

Speakers in session 2.

Dr. Nguyen Anh Tuan: Opening the open discussion of session II, Dr. Nguyen Anh Tuan said that the owner is to remove barriers to open investment capital. The first comment would like to invite Ms. Huong Vu, General Director of EY Vietnam. As a company with contact and connection with many foreign investors, in the process of contact, she must have grasped many difficulties and problems of businesses and investors. Could you let some problems surface?

Businesses enjoy incentives but have problems with procedures

Mrs. Huong Vu: About the difficulties of foreign investors, I also have some recommendations to the Government. In fact, I just want agencies, the Government and businesses to go together.

In recent years, attracting investment capital into Vietnam has been very good, but the process of implementing legal documents is too dependent on the consultant. For example, the concept of an export processing enterprise is entitled to a priority regime.

In the past, there were many limitations, but then the Government issued Decree 18 with the goal of solving problems about tax refund and input, but there are still other problems that have not been resolved.

An export processing enterprise from Japan said that from December 2018, the enterprise will enjoy incentives under Decree 18. However, when the enterprise buys and supplies from domestic houses in Vietnam, it has not been approved. Customs procedures, looking forward to the Government, agencies and sectors to solve and support.

Mr. Luu Duc Huy, Director of Tax Policy Department (General Department of Taxation, Ministry of Finance): Regarding value added tax (VAT) problems of enterprises, Decree 82 previously regulated determined that the enterprise is allowed to show the export processing enterprise mechanism after it is confirmed by the customs office.

After that, if we do not meet the requirements, we will not be able to operate as an export processing enterprise (that is, no longer enjoy the non-tariff zone). When not yet recognized as an export processing enterprise, the enterprise must pay VAT. After being recognized, goods purchased from abroad are not subject to VAT. Buying goods from Vietnam means that domestic people export to foreign countries.

When the Ministry of Finance amends Decree 134 on import and export taxes, including corrections on import taxes, in addition, it will deal with goods purchased by enterprises from abroad. And, when that tax, when recognized as an export processing enterprise, is eligible for non-customs clearance, it will be refunded overpaid. For goods purchased domestically, within the scope of Decree 18, it is not based on the overpaid refund.

huy

Mr. Luu Duc Huy, Director of Tax Policy Department (General Department of Taxation, Ministry of Finance).

When switching from an enterprise with a normal purchasing mechanism to an export processing (non-tariff area), an enterprise that is not subject to VAT, there is no mechanism for refund, deduction, or VAT, which will be included in the CIT expense.

In principle, the tax authority is the agency that complies with tax laws. In order to include CIT expenses, three conditions must be met. One is the expenses related to the production activities of the enterprise, the second is that there are reasonable and valid invoices and documents, the third is, if the expenditure is more than 20 million, it needs to be paid through the bank, it is necessary to determine this amount. related to the business activities of the enterprise.

In the Law on CIT, there is a provision on separate accommodation that is not related to the production and business activities of the enterprise, which will be deducted according to the provisions of the Law on corporate income tax, if it is not in the cases of sponsorship specified in the law. it is very difficult for tax authorities to accept this as a deductible expense when calculating tax.

Provincial planning will reduce procedures for investors

Dr. Nguyen Anh Tuan: The next question I would like to ask is Mr. Tran Quoc Trung, Deputy Director of the Department of Economic Zone Management, Ministry of Planning and Investment. As the Management Board of Long An Industrial Park has presented, the current regulations make investment procedures prolonged, even more than 1 year, in your opinion, is there any way to shorten the review time for industrial park infrastructure projects so that the investors save time and costs?

Mr. Tran Quoc Trung: The making of documents related to planning, survey, current status, related to land use purpose conversion. At the same time, investors in industrial park infrastructure meet the capital and experience requirements.

In the process of preparing dossiers for opinions of ministries and sectors, related to land issues, construction planning, investors need to prepare good financial capacity, project documents to meet the requirements of relevant management agencies. matters, especially land-related content. For industrial park projects, it is important to convert rice land, forest land, public works assets. Therefore, the implementation of the industrial park infrastructure project takes a long time….

In the coming time, the steps of provincial planning, investigation and construction survey will be carried out before making the IP project dossier, so enterprises can shorten the preparation time. Besides, we have removed the industrial zone planning and put it into the provincial planning, contributing to reducing the time for investors.

Dr. Nguyen Anh Tuan: In the lecture Professor-Dr. Nguyen Mai emphasized that it is the transformation of green and ecological industrial zones. However, investing in industrial zones according to this model requires large costs, leading to difficulties in capital and slow payback. As an investor of a model industrial park in Vung Tau, from the practical experience of Phu My 3, he can share the experience of the business, please invite Mr. Ta Quoc Bao, Deputy General Director of Phu My 3 Intensive Industrial Park. ?

Mr. Ta Quoc Bao: Phu My 3 Intensive Industrial Park is a model industrial park aimed at large-scale investors. In order to attract eagles, which often have modern production lines, environmental criteria, and large total investment capital, we determine to invest in modern and synchronous infrastructure.

In addition to infrastructure, we also have a one-stop service, accompanying investors throughout the process of project research and implementation. This department is the bridge between the government and investors.

Industrial real estate will create a new path

Dr. Nguyen Anh Tuan: The service urban industrial park model is interested by many investors, this time has been specified in Decree 35, but many investors still expressed some concerns when investing in this model. This image. Please leave a question for Mr. Ho Chi Quang, Deputy Director of the Department of Architectural Planning, Ministry of Construction. Can you tell us what needs to be done to facilitate this model investment procedure?

Mr. Ho Chi Quang: Currently, the Ministry of Construction is receiving the task of developing standards for urban service technology zones. As far as I know, there is currently no law or regulation for an investor to implement an urban area combined with an industrial park project. First, the urban-industrial symbiosis must be determined and the percentage urban and industrial must be determined. From there, local agencies and legislative bodies make appropriate regulations.

I know that Ho Chi Minh City has come up with a suitable model that is an elastic, symbiotic urban area that combines green, brown and elastic economic zones (that is, retractable, elastic with climate change). Finally, it can be said with a new issue like this, we believe that the service-industrial city is an industrial real estate that will create a new path for the entire population of Vietnam.

Thus, investors can sponsor and support scientists so that they can research and come up with regulations and standards. I have not felt that there is an appropriate investment incentive for the residential community in this IP. For investors and workers, how to make this industrial park model look like a folk song in the Southern region: “Come here, stay here / When will the green roots come back”. Hope people and investors get along, benefit, and form strong communities.

Mr. Tran Quoc Trung, Deputy Director of Economic Zone Management Department: In terms of criteria for urban areas associated with IPs, Decree 35 clearly stipulates the planning of industrial parks – urban areas – service. Accordingly, the decree clearly states that

For example, Vsip, Becamex have been deployed in many localities. Currently, investors are wondering about whether to be an investor for the whole industrial park – urban area – service or not? Regarding this, we are divided into industrial zones, assigned land, and land for urban areas, we organize bidding. If a certain investor meets the capacity, it is completely possible to be the investor of the whole area.

Proposal to expand the investor’s housing for workers

Dr. Nguyen Anh Tuan: When it comes to worker’s social welfare and worker housing, it has long been an issue that has been covered a lot by the press, but it seems that meeting workers’ housing needs is far from desired. From the perspective of the Vietnam General Confederation of Labor, do you have any ideas or suggestions to the ministries and branches to speed up, please invite Mr. Le Van Nghia, Head of the Project Management Board to build the trade union institution, Vietnam General Confederation of Labor?

Mr. Le Van Nghia: The Prime Minister assigned the Vietnam General Confederation of Labor on decision 655 to implement housing for workers in industrial parks and export processing zones. However, after the implementation, there are 31 provinces that have introduced the location for the TLD, but so far only 2 provinces have allocated land for the TLD to implement, but the legal procedures related to the law are very limited, such as the land law. did not assign the TLD as housing, so we stopped.

After that, the Prime Minister made a decision again that Decision 1729 combined with businesses to work in the trade union moderation area with a model of housing and a cultural and sports area with an entertainment area for workers to live in. that fits very well. However, there are still some problems such as we were introduced to the land location and have detailed planning but no site clearance, leading to slow progress. Military zone planning is almost all social housing floors, leading to when businesses invest, they will increase the number of floors, leading to subdivision adjustment, slow progress.

Currently, the Prime Minister is assigning the Ministry of Construction to issue related laws to ensure that all research sectors are involved and to build social housing for workers. On August 1, the General Confederation proposed and the Prime Minister said that investors must expand the area of ​​​​investors to build houses for workers.

At this point, we will go to Ba Ria Vung Tau province to see if the land is suitable for implementation.

Hire human resources services to ensure labor resources for industrial zones

Dr. Nguyen Anh Tuan: The last problem, the shortage of labor, especially high-quality labor in industrial zones, is here an expert in this field. Ms. Luong Tu Anh, General Director of Nodex Asia Co., Ltd. can tell the solution to meet the labor supply for investors.

Mrs. Luong Tu Anh: Currently, foreign enterprises investing in Vietnam and Vietnamese enterprises all use the plan to have good human resources for enterprises. One of the effective options is to outsource human resource services. Many FDI enterprises have plans in using outsourced personnel every year.

There are businesses that set a goal of 30-50% to outsource personnel. Currently, outsourced human resources have 3 main trends, which are: Recruitment service, recruitment supply; provide CV search package; provide recruitment package package… One trend to mention is human resources administration, labor legality, salary payment – ​​popular trends in Vietnam.

We offer a new service package called HR-Operation, businesses can use a full-service HR package, similar to an external HR department with full administrative functions, recruitment, training, and personnel development. /talent…. We use applications and management software to help transparent and effective management for businesses. In addition, businesses all set the goal of developing new technology and software systems to catch up with the trend.

Many businesses target customer management software, customer care, automation …, these new software and tools all have a stage to train users. Enterprises have time to prepare human resources to meet the needs of innovation in the management system to meet technology.

Dr. Nguyen Anh Tuan: The expert opinions in this discussion answered some questions and recommendations from investors. BTC hopes that representatives of ministries and sectors will continue to accompany investors on how to create a healthy and competitive investment environment, a friendly government, and really act “to welcome the eagle’s nest”. “. Through today’s Forum, we have heard stories related to investment policies and processes, and also clarified the provisions of Decree 35. Next is the issue of labor in industrial zones, the Labor shortage, solutions.

We hope that investors’ opinions and policy recommendations to the authorities will be fully conveyed by the mass media system. Investor Magazine is also ready to study your opinions to summarize