Dong Nai to convert industrial park to urban area

Dong Nai Province has approved a plan to transform Bien Hoa 1 Industrial Park into an urban – commercial – services area and improve the environment around it.

One of the most economically important provinces in the South, Dong Nai has 31 industrial parks in operation that house investors from 44 countries and territories. — VNA/VNS Photo

For the purpose, it plans to relocate all the businesses inside the facility, situated in Bien Hoa City, by 2025.

According to its People’s Committee, the makeover of the industrial park is a key feature of plans to change the city’s urban appearance, increase the efficiency of land usage and reduce pollution in the Dong Nai River.

It is alongside the river and national highways 1A and 51.

It will be developed as two segments: a 44ha political and administrative hub and a 286ha urban – commercial – services area.

For the latter, developers will be selected through land use rights bidding, and the development is slated for completion by 2030.

There will be supportive policies to execute this project, including income tax, land use fee, value added tax, and import tax breaks, access to credit, among others.

The People’s Committee expects the task to be difficult since many of the industrial park’s tenants have long-term lease contracts while land compensation and relocation of businesses and households will cost around VNĐ7.5 trillion (US$302.5 million).

The relocation will factor in regulations and agreements and commitments that Viet Nam has with foreign investors.

Viet Nam’s oldest industrial park was built in 1963, and now has over 70 businesses leasing land, 67 of them until 2051.

In January 2021, it was removed from the country’s plan for industrial parks.

One of the most economically important provinces in the South, Dong Nai has 31 industrial parks in operation that house investors from 44 countries and territories.

Some have been causing pollution, affecting local residents.

(Source:VNS)