A connectivity mechanism needed for IZs development along the Eastern Highway Economic Corridor

Lawyer Pham Hong Diep, Chairman of the Board of Directors of Shinec Joint Stock Company, the investor in Nam Cau Kien Industrial Park, believes that reaching this aim is just a matter of "connectivity." Promoting financial connections among firms within the same industrial park or with businesses from various industrial parks is a paradigm that has been effectively implemented in many areas throughout the world, according to practical experience.

Infrastructure bottleneck

Mr. Pham Hong Diep explains, when analyzing the current bottlenecks in industrial infrastructure development, that one of the significant bottlenecks in developing infrastructure for industrial parks in Hai Phong city specifically, and in the country as a whole, is the difficulty of IZ infrastructure investors in accessing land funds for industrial development.

Mr. Diep cites many major reasons for this, including the existing absence of authorized land quotas for IZs in provinces and cities. The investment project approval procedures for IZ infrastructure take a long time, averaging 4 to 5 years and consisting of 7 phases, from planning approval through investment policy approval and construction permit issuing. The complicated legislative processes for investment and construction hinder investment potential in IZ infrastructure to some extent.

Mr. Diep adds that obstacles in land procedures, such as land compensation and site clearing, land use purpose conversion, land allocation, land leasing, and the issuing of land use rights certificates, are also key difficulties that affect firms. Despite the fact that investors willingly advance monies to the government for land compensation and clearing activities, the existing land policy and legal framework entail risks that investors must face. Many IZ projects have completed land compensation and clearance procedures and invested in infrastructure, but have yet to sign land leasing contracts with the state, resulting in abandoned projects and the waste of billions of Vietnamese dong.

Currently, the government is working to improve the investment climate and legislative framework. Many key draft legislation are likely to be enacted by the National Assembly in 2023, including the Land Law (amended), Housing Law (amended), Real Estate Business Law (amended), Bidding Law (amended), and so on. These rules will help to create a clear legal environment by resolving concerns with present real estate development initiatives. The modified Land Law, in particular, would make it easier for investors to acquire project land money through a flexible method.

Establishment of efficient mechanisms

With the potential to become an economic development region for four provinces, VCCI has proposed a pilot model for linking Hung Yen, Hai Duong, Hai Phong, and Quang Ninh provinces along the Eastern Highway Axis, based on economic development factors and perspectives of enterprises and investors.

According to Mr. Pham Hong Diep, a unified approach is required to establish a Council for IZ Connection and assign VCCI the role of coordinating connection activities in order to promote industrial development along the Eastern Highway Axis from Hanoi to Hai Phong and further to the Mong Cai border gate. Furthermore, Mr. Diep offers three ways to improve effective collaboration among IZs along the Eastern Highway economic corridor.

Fist of all, a unified logistics system for participating IZs within the Council is required. Creating a single and comprehensive logistics system would reduce logistics expenses, optimize transportation costs, assure continuous and smooth connectivity between IZs, and boost the region's operational efficiency and competitiveness. The Council can work with transportation units and logistics businesses to create an integrated transportation system for IZs while streamlining logistical procedures related to transportation facility development and management. This would assure connectivity between IZs via multiple means of transportation, as well as multimodal transportation services to fulfill the diversified demands of IZ firms, eventually helping to lower logistics costs and supporting industrial real estate growth.

The emphasis should be on developing a multidirectional network of IZs, enterprises, government agencies, research institutions, and other partner groups. This network will allow for the exchange of information, experiences, and effective IZ development solutions. This network can host annual events, seminars, and specialist forums on IZ management, Industry 4.0 development, technology and digital transformation, environmental and energy solutions, and new industry trends.

These events will provide network members with the opportunity to learn about and access the most recent information and innovative approaches. Furthermore, the Council can encourage collaboration among IZs by supporting cooperation among IZs in the same industry or by promoting specific industrial cooperation models. The Council can create a large network by utilizing digital technologies and online platforms, allowing participants to access information and resources, participate in online forums, and support remote collaborative activities.

It is critical to increase investment promotion and collaboration initiatives. Meetings, conferences, investment forums, and exhibits held on a regular basis can provide chances for potential investors and investment hosts to network, share information, and build collaborative partnerships. The Council can aid in creating cooperative links amongst IZs in order to boost competitiveness and maximize the region's potential. The Council can stimulate investment and cooperation by offering collaboration possibilities and linking enterprises in IZs to programs, support funds, and financial mechanisms.

In conclusion, the establishment of efficient linkage mechanisms and collaboration strategies among industrial zones along the Eastern Highway Axis is essential to promote industrial development in the region. These strategies include establishing a unified logistics system, building a multidirectional network, and strengthening investment promotion efforts. Through these efforts, the region can leverage its potential and create a conducive environment for industrial growth and development.