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Removing legal barriers for eco-industrial park development

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By 2030, 40-50 per cent of localities will have plans to convert existing industrial parks into eco-industrial parks, while 8-10 per cent of localities are determined to build new eco-industrial parks to attract investment.

According to data from the Ministry of Planning and Investment, by the end of 2023, the country had 416 industrial parks established, including four export processing zones, with a total natural land area of ​​about 129,900 hectares and a total industrial land area of ​​about 89,200 hectares.

Up to now, the system of industrial parks has been present in 61 out of 63 provinces and cities nationwide, becoming a key area attracting domestic and foreign investment projects and a destination for many leading world corporations.

In the new development trend, economic organisation models by territory are changing in development goals, and Vietnam is no exception.

At the same time, towards sustainable development, the requirement to build green industrial parks and convert existing industrial parks into ecological industrial parks is becoming an urgent need to adapt to development requirements.

An assessment report by the Ministry of Planning and Investment shows that in over 30 years of forming and developing industrial zones in Vietnam, up to now, the development of industrial zones in width is facing difficulties due to the limited resources of labour, land, and resources. Labour productivity and resource exploitation efficiency are low, not ensuring harmony between economic development, environmental protection and social security.

This process also faces difficulties as tax and land incentives are gradually decreasing. The linkage and cooperation in industrial production in industrial zones and economic zones are still limited.

According to the plan, by 2030, 40-50 per cent of localities will have plans to convert existing industrial parks into eco-industrial parks, while 8-10 per cent of localities are determined to build new eco-industrial parks to attract investment.

A survey by the Institute for International Investment Studies (ISC) shows that the demand for attracting investment capital to fill the remaining area of ​​Vietnam’s planned industrial parks is about 600-650 billion USD. The total investment capital for infrastructure development and filling industrial parks is about 650-700 billion USD.

In addition, the demand for investment capital for technological innovation in enterprises in industrial parks and restructuring and converting 293 existing industrial parks into ecological industrial parks, to realise the green growth target according to the commitment of the Vietnamese Government to the international community, is also very great.

According to the Vietnam Industrial Park Finance Association, the implementation time of an industrial park infrastructure investment project can last more than three years, even five years, because of many difficulties and obstacles in the legal framework and site clearance, especially investment in the model of new industrial parks and ecological industrial parks.

Dr Ngo Cong Thanh, Vice Chairman of the Vietnam Industrial Park Finance Association, said that attracting investment to develop economic zones and industrial parks is showing limitations that must be overcome.

The planning and development orientation of industrial parks and economic zones still lacks a comprehensive vision and long-term perspective. They are still spread out across administrative boundaries, lack industry and regional linkages, and the quality and efficiency of investment attraction have not met the requirements for in-depth development.

In addition, localities and investors developing infrastructure for domestic industrial parks still prioritise attracting investment to fill in, not paying attention to the industry structure, technology, and environmental and social factors of investment projects, so the efficiency of investment in developing industrial parks has not met the requirements.

On the other hand, due to limited financial capacity, investors in industrial park infrastructure still have the mentality of waiting to find secondary investors before investing in shared infrastructure in the industrial park while foreign investors want to have land and technical infrastructure immediately before deciding to invest. This is one of the reasons why many industrial parks have low occupancy rates.

To mobilise large capital sources for investment in industrial parks and economic zones in the coming time, Dr Ngo Cong Thanh said there should be fundamental changes in attracting capital flows, creating conditions for investors to easily access production factors and innovate investment promotion activities.

In addition, legal issues regarding the formation and development of ecological industrial parks, and converting existing industrial parks into ecological industrial parks, need to be legalised or specifically guided, encouraging investors to participate in developing industrial park infrastructure.

Every year, the amount of foreign direct investment (FDI) in industrial parks and economic zones accounts for 60-70% of the FDI capital attracted nationwide, and this rate is still on the rise. This shows that industrial parks play a very important role in foreign investment cooperation activities in Vietnam. The trend of foreign investment in Vietnam in the coming time will focus mainly on industrial parks and economic zones.

Dr Phan Huu Thang, Chairman of the Vietnam Industrial Park Finance Association

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Foreign offshore wind power investors can sell projects, Vietnam SOEs prioritized to buy

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Foreign investors of offshore wind power projects in Vietnam can sell their projects, and wholly state-owned enterprises (SOEs) or subsidiaries of those SOEs are prioritized to buy them.

The transaction is only permitted if the Vietnamese investors in the company refuse to purchase, according to the government’s Decree 58/2025 on renewable and new energy, effective from March 3, 2025.

Transactions of a part of an offshore wind project or an entire project must comply with the Electricity Law 2024 and other laws related to investment, enterprises, and sea.

They must be approved by the Ministry of National Defense, the Ministry of Public Security, the Ministry of Foreign Affairs, and the Ministry of Industry and Trade if there is involvement of foreign investors.

A sea-based wind power project in Tra Vinh province, Mekong Delta, southern Vietnam. Photo courtesy of Trungnam Group.

A sea-based wind power project in Tra Vinh province, Mekong Delta, southern Vietnam. Photo courtesy of Trungnam Group.

In cases of not-yet operational projects, the foreign buyers must meet the following requirements.

First, they must have experience in investing and developing at least one offshore wind power project that is operational in Vietnam or in the world. “Experience” includes direct investment, contributing a minimum 15% of the project’s total investment capital, and the ratio of equity to capital contribution being at least 20%.

Second, the foreign buyers must ensure that the offshore wind power project has the participation of domestic enterprises with at least 5% of chartered capital or voting shares of the company that implements such projects. The “domestic enterprises” must be wholly state-owned enterprises (SOEs) or firms with SOEs holding more than a 50% stake.

Third, they must commit to utilizing domestic supplies (workforce, service, products) during their investment, construction and operation, on the basis of ensuring competitiveness of prices, quality, schedule, and available capability.

For operational projects, the transations must meet the “second” requirement mentioned above.

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Law on national defence, security industry, industrial mobilisation passed

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The 15th National Assembly (NA) on June 27 passed the law on national defence-security industry and industrial mobilisation in its ongoing seventh plenary session.

Specifically, all the 464 deputies present in the sitting, or 95.47% of the total number of deputies, said “yes” to the law.

The law comprises seven chapters and 86 articles.

Article 80 in the draft law proposed earlier about the responsibilities of People’s Court was removed, while Article 28 was added on the development of technologies with dual purposes and Article 71 on training, research, and expert exchanges to serve defence-security industry.

The law will take effects from July 1, 2025.

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Taiwan’s electronics firm Good Way Technology to invest $15 mln more in Vietnam

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Good Way Technology, a Taiwan-based original design manufacturer (ODM) specialized in computing and mobile peripherals, will invest $15 million more in Vietnam.

In a recent filing with the Taipei Exchange (TPEx), Good Way Technology said it would invest $15 million in Good Way Cayman and then reinvest the entire amount in its sub-subsidiary Good Way Technology Vietnam.

The construction site of Good Way Technology factory in Thai Binh province, northern Vietnam. Photo courtesy of Lao Dong (Labor) newspaper.

The construction site of Good Way Technology factory in Thai Binh province, northern Vietnam. Photo courtesy of Lao Dong (Labor) newspaper.

The purpose of the move is “long-term investment,” according to the filing.

Good Way Technology Vietnam received an investment certificate for the project in October 2023. In February 2024, it kicked off the construction of a $45 million factory in the northern province of Thai Binh.

The factory, located in the Lien Ha Thai Industrial Park, will manufacture peripheral devices like USB connectors for computers. It will have an annual capacity of 3.7 million items.

Construction of the project’s first phase is scheduled for completion in Q3/2024, enter trial production the next quarter and start official production in Q1/2025.

Corresponding times for the second phase will be Q4/2026, Q1/2027 and Q2/2027.

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