Without timely capital, it is difficult to develop ecological industrial parks.

On the morning of January 16, in Hanoi, the Chairman of the Vietnam Financial Consulting Association (VFCA), Mr. Le Minh Nghia, presented the decision to establish the Vietnam Industrial Park Finance Association (FAIP) to Dr. Phan Huu Thang, former Director of the Foreign Investment Agency (Ministry of Planning and Investment), interim Chairman of FAIP.

According to Dr. Thang, FAIP will be an organization to protect the legal rights and interests of investors in industrial park infrastructure, enterprises operating in industrial parks and enterprises with business activities related to industrial parks; be a reliable focal point connecting supply and demand for investment and finance for organizations, units and individuals operating in industrial parks, with the desire for the Vietnamese industrial park system to develop in a modern and green manner.

Không có vốn kịp thời, rất khó để phát triển khu công nghiệp sinh thái- Ảnh 1. — Overview of the discussion

At the launching ceremony, the interim Chairman of FAIP said that there are currently "bunkers" hindering the development of Vietnam's industrial park system due to administrative procedures, human resources at all management levels, and limited experience in investment promotion.

According to feedback from businesses, a project often takes 3 years to complete procedures, even 4-5 years, causing businesses to miss opportunities. Management levels need to share more with businesses, but businesses also need to strengthen their capacity. Because there are also projects that have received land but have not been able to attract businesses and partners.

More preferential credit policies are needed.

Also this morning, a discussion took place with the topic "Current status of industrial parks and financial solutions" organized by VFCA and FAIP.

Mr. Le Minh Nghia said that the whole country has 414 industrial parks established in 61/63 provinces and cities, with a total area of nearly 127,000 hectares; more than 1,000 industrial clusters with a total area of more than 31,000 hectares.

By the end of 2022, industrial parks nationwide had attracted more than 11,200 FDI projects with a total registered capital of 231 billion USD, and 10,400 investment projects of domestic enterprises.

Enterprises in industrial parks make a huge contribution (about 50%) to the total export turnover of the country, contributing significantly to the budget revenue.

According to research results of the Institute of Strategy and Financial Policy (Ministry of Finance), the financial policy system applied to Vietnam's industrial parks currently generally includes 5 policy groups: tax and fee policies, investment policies, credit policies, land policies and other policies.

However, in practice, the main policies only include tax policy, land policy, investment incentive policy and other local support policies; the role of credit policy is still relatively vague.

At the same time, many problems arise such as financial resources for developing technical infrastructure of industrial parks are still very limited, leading to incomplete infrastructure, prolonged construction delays, making it difficult to attract investment.

There is an overlap in investment incentive regulations by location, leading to some industrial parks not enjoying incentive policies; there are no preferential financial policies for enterprises and secondary investment projects in industrial parks.

Notably, by 2030, 40-50% of localities will have plans to convert existing industrial parks into eco-industrial parks and 8-10% of localities will have plans to build new eco-industrial parks. However, capital for green economic development in general and eco-industrial parks in particular is still very limited.

By December 2022, the total outstanding green credit balance in Vietnam had only reached over VND 500,000 billion, accounting for about 4.3% of the total outstanding bank credit balance for the economy.

At the workshop, speakers, economic experts, and bank representatives said that there should be more preferential credit policies to promote access to capital for eco-industrial parks. Without timely investment capital, it will be difficult for the eco-industrial park model to develop in practice. This could cause Vietnam to miss out on the green investment wave that is increasingly becoming a focus of international investors.

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