Danang People’s Committee is looking for the prime minister’s approval for the investment planning of three industrial zone projects representing a total investment capital sum of VND14 trillion ($608.7 million).

These industrial zones (IZs) are three of the key projects that Danang wants to complete in the 2020-2025 period.

The three IZs are the 400-hectare Hoa Ninh IZ with the total investment capital of VND6.08 trillion ($264.35 million), the 360ha Hoa Nhon IZ (VND5.65 trillion – $245.65 million) and the 120ha second phase of Hoa Cam IZ (VND2.23 trillion – $96.96 million).

Danang expects to complete the construction of these three IZs by 2023. Land clearance costs make up an average of 50 per cent of the total investment capital.

At the end of last year, Danang called for investors to submit bidding dossiers. At the time, eight investors expressed intention to join these projects, including one foreign and seven domestic businesses. However, none of them met the criteria on capacity and experience to participate in the bidding.

Ho Ky Minh, Deputy Chairman of Danang People’s Committee said that although these investors have the capacity and experience in developing large-scale IZ in both Vietnam and overseas, they cannot meet the criteria set out by Circular No.16/2016/TT-BKHDT.

After that, Danang issued new criteria but no investors could meet them. Danang Department of Planning and Investment had to work with the Ministry of Planning and Investment to adjust the criteria to suit with realities.

As of now, Danang has six IZs covering an area of 1,000ha with an occupancy ratio of 85 per cent. Industrial and high-tech parks in the city have attracted 499 projects, 368 of which are domestically invested with the total investment capital of nearly VND26.7 trillion ($1.16 billion), and 131 are foreign-invested with a total investment sum of $1.74 billion.

In the first five months of this year, the city attracted 11 investment projects into its industrial and high-tech parks, including three foreign-invested projects worth $145.3 million and eight domestically-invested ones totalling $8.2 million.

By Ha Vy