A reliable destination for investors

After more than 20 years of re-establishment, Soc Trang has gained positive achievements in socio-economic development, meeting economic growth targets of developing infrastructure for production and improving local people’s living standards.

Being a coastal province abounding in fertile land and favorable climatic conditions, Soc Trang gains strengths in agriculture, aquaculture and sea economy. The province is connected with other localities in the Mekong Delta and the southern key economic zone through four national highways, including 1A, 60, Nam Song Hau and Quan Lo Phung Hiep.

Of course, advantages aside, Soc Trang also has some weaknesses. The economic restructuring toward non-agriculture has yet to meet expectations and industrial and service sectors develop modestly. Meanwhile, sea economy development has yet to tap potential, unemployment in rural areas is on the increase and the number of poor households remains, especially in the Khmer community.

To help Soc Trang overcome these shortcomings, the Prime Minister has allowed the province to establish six IPs, namely An Nghiep, Tran De, Dai Ngai, Vinh Chau, Long Hung and My Thanh, with a total area of 1,106.38 hectares. An Nghiep IP has been fully developed and put into operation.

Site clearance and compensation are under way for Tran De IP. The province is calling for investors capable of developing infrastructure at the remaining four IPs.

As part of the effort to materialize the projects, Soc Trang Industrial Zones Authority (STIZA) has suggested the provincial People’s Committee implement policies and incentives for investment into IPs.

Apart from administrative reforms and business environment improvement, incentives on land, taxes, credit, vocational training and investment and trade promotion campaigns have been launched. Investors in these IPs have been heartily supported by local authorities to complete all the procedures quickly.

Updated information about local and international markets are available for investors who are sponsored to join exhibitions and fairs, and vocational training.

These policies and incentives have paid off: IPs in the province have attracted a larger contingent of enterprises. As of September this year, An Nghiep IP had been home to 39 enterprises investing in 47 projects with combined registered capital of VND3,095 billion.

Leasing a combined area of 136.64 hectares (nearly 84% of the total area for lease), these enterprises employ up to 24,704 workers. At present, 23 investors, including one foreign-invested enterprise, are operational in the park and six others are building factories. The remaining 10 investors are proceeding with investment procedures.

Of the VND2,207.6 billion worth of industrial production in the first nine months of this year, foreign investors made up VND20.1 billion. Main products were frozen shrimp (16,619 tonnes), farm produce (631.21 tonnes), plastic utensils (2,062 tonnes) and beer (29.84 million liters).

Aside from contributing a great deal to the provincial economy, An Nghiep IP has created jobs for thousands of workers, accelerated labor transition from agriculture to industry and services, and stabilized social welfare in the province.

Many of the six IPs are located along national highways 1A, Nam Song Hau and Quan Lo Phuong Hiep (along the Hau River), which are favorable for overland and waterway transport. Moreover, these IPs comply with the master plan for investment attraction, helping boost urban and socio-economic development in a comprehensive way.

IP development is one of the key solutions to boosting industrialization and modernization processes in Soc Trang which helps turn it into an industrial province by 2020. According to the master plan, funds for developing these parks are from the State budget as well as many other sources. This fact has encouraged private enterprises to invest in developing IP infrastructure.

In the near future, STIZA focuses on calling for investors who develop infrastructure at IPs. It will also boost site clearance and compensation to timely transfer cleared land to investors. STIZA also suggests the province develop technical infrastructure outside IPs, and services and supporting industries.