Companies operating in Dong Nai-based Bien Hoa 1 Industrial Zone (IZ) are promised adequate compensation for forced relocation from the IZ, which will be turned into an urban, service and commercial area.
Companies operating in Dong Nai-based Bien Hoa 1 Industrial Zone (IZ) are promised adequate compensation for forced relocation from the IZ, which will be turned into an urban, service and commercial area.
Corporation for the Development of Bien Hoa Industrial Zone (Sonadezi) is assigned by the provincial government to make a plan for relocation of the firms in Bien Hoa 1 IZ.
Speaking at a press conference held in Dong Nai this Tuesday, Tran Thanh Hai, deputy general director of Sonadezi, said the corporation was drawing up the plan with adequate compensation and sufficient time for companies in the IZ to move away.
Businesses are allowed to stay if they are financially capable enough to adjust themselves to meet the new functions of the zone. If not, they will receive compensation or support in development of production facilities in new locations.
Another option is those unable to adapt to the new zone will be given priority to become shareholders of a company to be set up to manage the urban, service and commercial area. Their stakes will be proportional to the areas they are currently occupying in the IZ to ensure fairness.
If they refuse to become shareholders of the aforesaid company, owner of this company will look for strategic partners to replace them.
With the above options, Hai said the firms subject to relocation would not suffer from disadvantages if land in Bien Hoa 1 IZ became expensive after its transformation.
In addition, the government of Dong Nai has issued policies on labor support so that the displaced companies can stabilize production in new locations. The province promises to offer the displaced firms the biggest incentives.
Bien Hoa 1 IZ is one of the biggest sources of pollution in the Dong Nai River, the water supply to more than 20 million people in HCMC, Dong Nai, Binh Duong and Ba Ria-Vung Tau. Every day, 97 companies active in this IZ discharge over 9,000 cubic meters of wastewater, some 7,900 cubic meters of which is treated by the companies themselves and discharged directly into the Dong Nai River.
The Dong Nai government has encountered many difficulties in its plan for converting the functions of Bien Hoa 1 IZ, especially in relocation of 104 companies, including 97 active ones with 26,100 employees. The cost of this conversion is nearly VND15 trillion.
Companies in Bien Hoa 1 IZ will be relocated to industrial parks like Giang Dien, Nhon Trach and Ong Keo, according to Sonadezi. However, so far, no company has moved away.
Many businesses say they feel uneasy about moving to Giang Dien IP or other industrial parks, which are 20-60 kilometers from their current production base, pushing up costs in the context of financial distress.
Moreover, they are concerned their workers will be struggling when their plants have to halt operations for relocation. During this process, they will have no products to supply to customers and thus will easily lose their market.
(Source:VNNet)
