Enterprises at Bien Hoa 1 Industrial Park in Dong Nai Province are frightened at the possibility of being forced to relocate their factories to new places in the next couple of months, as such a move will cost them dearly in terms of labor and infrastructure.
Enterprises at Bien Hoa 1 Industrial Park in Dong Nai Province are frightened at the possibility of being forced to relocate their factories to new places in the next couple of months, as such a move will cost them dearly in terms of labor and infrastructure.
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| An artist's impression of the urban-service-commercial area to be developed at Bien Hoa 1 Industrial Park - |
Most tenants in the IP have objected to the plan, citing huge damages to the production, while the park owner Sonadezi has reiterated its plan to develop a commercial-urban complex on the premises of the IM now.
Nguyen Thi Kim Vinh, deputy general director of Dien Quang Lamp Joint Stock Company, told the Daily that the company had two workshops at Bien Hoa 1 IP with 500 workers. If the workshops are moved to Giang Dien Industrial Park as suggested, the distance from there to the company’s main office in HCMC as well as its other factories is longer, not to mention costs for new workshops, she added.
According to Vinh, what is more concerning is the loss of laborers. Workers of Dien Quang are experienced and well-trained but most of them may not work for the company any more if the workshops are relocated. Meanwhile, if Dien Quang operates shutter buses, production costs will be pushed up, making it hard for the company to compete with cheap imported products.
For others, the relocation would mean a waste of existing facilities.
Bien Hoa Steel Joint Stock Company (Vicasa) has recently spent VND40 billion on an emission treatment system. If Vicasa moves its factory from Bien Hoa 1 to Nhon Trach Industrial Park, the investment in the emission treatment system is meaningless.
According to Le Van Cam, general director of Vicasa, the company has hired 26 hectares at Nhon Trach for its relocation plan.
However, Cam said that the budget for relocation at this point of time was limited as Vicasa had earned tiny or no profits in recent years.
Vicasa earned only VND500 million in profits last year. Due to the steel oversupply, its factory runs at a capacity of 120,000 tons per year compared to the designed capacity of 180,000 tons.
Vicasa forecasts to lose over 140 among some 490 skilled local laborers if the relocation is enforced.
“The company will comply with the province’s relocation plan but enterprises need supporting policies,” Cam said.
A survey of Sonadezi, investor of Bien Hoa 1 Industrial Park, shows that only 15% of the enterprises operating at this industrial park agree to move while 44% do not want to.
Many enterprises say they are anxious when moving to Giang Dien or other industrial parks, which are 20-60 kilometers away. They also worry over moving and installing equipment and machines, and having no products for customers or losing the market when conducting the relocation.
Speaking to the Daily, a leader of Sonadezi said that Sonadezi would start to change the functions of Bien Hoa 1 Industrial Park into an urban-service-commercial area in the middle of this year with an initial investment estimated at some VND14.65 trillion.
Sonadezi is currently seeking opinions of ministries and agencies about tax and credit policies for relocated enterprises, solutions regarding capital sources, and land for their relocation.
Bien Hoa 1 Industrial Park established in 1963 covers an area of 324 hectares and currently has 104 enterprises with over 26,000 laborers.
(Source: SGT)
