New transformation of industries in Mekong Delta

Gradually improved transport infrastructure in parallels with the formation of many industrial parks, effective employee retention policies and construction projects of deep-water ports are important factors contributing to the Mekong Delta region’s rapid development of industries in recent times.

More than 10 years ago, traffic projects including My Thuan Bridge, Rach Mieu Bridge, and Can Tho Bridge came into operation facilitating people’s traveling in the Mekong Delta. Around ten years later, along with these projects, the My Thuan - Can Tho expressway opened to traffic while a series of other key projects and works such as Tran De deep-water port, Rach Mieu 2 Bridge, Dai Ngai bridge, Can Tho - Ca Mau expressway, Chau Doc - Can Tho - Soc Trang expressway, Cao Lanh - An Huu expressway, My An - Cao Lanh expressway are being carried out. Without these bridges, travel would be slower and more challenging, impacting transportation.

Furthermore, after more than seven months of starting construction, Vinh Thanh Industrial Park - VSIP Can Tho is gradually taking shape. According to Deputy General Director Anthony Tan of Vietnam - Singapore Industrial Park Joint Venture Company, Vinh Thanh Industrial Park - VSIP Can Tho is the first project invested by the unit in the Mekong Delta. He revealed that the Singapore Industrial Park Joint Venture Company decided to invest in the Mekong Delta region because the transport infrastructure in the region has been invested in and is being increasingly improved by the Government. The biggest bottleneck in the region is gradually being removed and in the future, this will be a big push for the industry to thrive.

Chairman Tran Viet Truong of Can Tho City People's Committee informed that Vinh Thanh Industrial Park - VSIP Can Tho is a key project of Can Tho City as it was planned as per green industry criteria, and environmentally friendly and smart management. After being completed, this industrial park will create jobs for 100,000 workers, attracting US$3.5 billion.

Along with Can Tho City, in the past three years, Long An Province's industry has also had many breakthroughs. Specifically, industrial production achieved an average growth rate of nearly 4 percent per year. Of these, the processing industry always accounts for over 90 percent. The scale of the industry is constantly increasing, attracting more and more large domestic and foreign enterprises to invest and develop new industries such as electricity, electronics, mechanics, solar power production, and processing industry for agricultural product .

According to the Ministry of Planning and Investment, Long An Province is currently the third locality in the country in the process of developing industrial parks just after Dong Nai and Binh Duong. In terms of FDI attraction, Long An Province ranks thirteenth in the country and ranks third in the Southern Key Economic Region (after Ba Ria - Vung Tau province and Ho Chi Minh City). Chairman Nguyen Van Ut of Long An Provincial People's Committee said that the province can gain the above achievements because it has made concerted efforts to implement open policies in recent times as well as promoted administrative reform. Moreover, it has spent more money on traffic infrastructure projects synchronously, connecting with Ho Chi Minh City.

According to the planning, the Can Tho City People's Committee is determined to turn Can Tho City into a major industrial center for processing and preserving seafood and aquatic products of the country. To achieve the above goal, along with the existing seven industrial parks, Can Tho City is planning to establish seven new industrial parks on a total area of more than 6,485 hectares. To help industrial parks operate effectively and attract many large businesses, Can Tho City is focusing on implementing the key solution of improving the quality of on-site labor resources.

In the immediate future, Can Tho City assigned Vinh Thanh District to develop a free vocational training project for local workers. Accordingly, it is expected that 3,000-5,000 local inhabitants will be trained to work in factories in Vinh Thanh Industrial Park - VSIP Can Tho.

Elsewhere in the Mekong Delta region, the Soc Trang Provincial People's Committee informed that to promote industrial development in the coming time, the province will continue pouring more money into construction projects of infrastructure in industrial clusters so that businesses can set up their factories in the province.

Furthermore, the province is focusing on the management and inspection of food safety implementation in industrial production while disseminating information of industrial environmental protection to production and business establishments. At the same time, solutions on capital, land, technology, human resources, and policy mechanisms will be synchronously adopted with the aim to provide the best support for businesses to create confidence for investors to come to Vietnam generally and the province particularly.

According to Chairman Pham Van Thieu of the People's Committee of Bac Lieu Province, the two biggest obstacles in developing the local industry in the past were incomplete transport infrastructure and low-quality labor resources. Many businesses decided not to invest in the province because logistics costs are too high and the construction costs of a factory or an enterprise are big.

However, with many key transportation projects recently in the Mekong Delta, investors, especially foreign investors, have begun to pay attention and contact localities to learn about the projects related to the fields of shrimp export, gas - electricity - and fertilizer. It can be seen that major bottlenecks in industrial development in Bac Lieu in particular and the Mekong Delta in general are gradually being removed. The remaining problem today is to improve the quality of human resources and effectively use the on-site workforce.

According to the Department of Planning and Investment of Can Tho City, from the beginning of 2024 until now, the total revenue of businesses operating in industrial parks in the area reached $687.7 million, a year on year increase of 25 percent. By March 2024, some 42,206 laborers are working in industrial parks in Can Tho City, an increase of 637 workers compared to the same period in 2023. In particular, the number of workers of enterprises attracting foreign direct investment (FDI) is 19,464 workers. So far, Can Tho City has attracted 81 FDI projects with a total registered investment capital of about US$2,274.97 million.