Relocation of Bien Hoa 1 IP: Measure of corporate responsibility

Bien Hoa 1 Industrial Park (IP) was approved for relocation more than 15 years ago. Throughout that time, Dong Nai province has consistently created favorable conditions for businesses to maintain production while preparing the necessary infrastructure and other conditions for relocation.

Ho Van Ha (2nd, left), Member of the Provincial Party Committee (PPC) and Vice Chairman of Dong Nai People’s Committee, meets and encourages enterprises to relocate their factories out of Bien Hoa 1 IP. Photo: Ban Mai

At present, the conversion of this IP’s land use function is not only a legal requirement but also an inevitable demand of urban development and environmental protection. The cooperation of enterprises serves as a “measure” of their sense of responsibility toward the province’s development, the community, and the living environment.

At that time, although the policy was approved, the province continued to create the best possible conditions for enterprises to maintain production activities. In 2021, the government officially removed Bien Hoa 1 IP from Vietnam’s list of IPs. Subsequently, the province issued a project for the conversion of Bien Hoa 1 IP into an urban–commercial–service area and for environmental improvement. These two legal bases serve as the foundation for land recovery and urban redevelopment.

Ho Van Ha, Member of the PPC and Vice Chairman of Dong Nai People’s Committee, said that the relocation policy for Bien Hoa 1 IP has been implemented for many years. Now is the time to take decisive action to implement the project, enhance the environment, and revitalize the province’s central urban space. According to the provincial leadership, government determination alone is not enough, as it also requires cooperation from enterprises and residents. In cases where enterprises deliberately delay, the province will apply administrative measures in accordance with regulations to recover land, ensure overall project progress, and maintain fairness for early-compliant units.

As of now, 100% of households and the majority of enterprises in the priority area have handed over their premises or are in the process of dismantling their assets. According to Mai Phong Phu, Deputy Director in charge of the Provincial Land Fund Development Center, approximately 135 out of 296 hectares of enterprise-used land, or roughly 46%, have been cleared. This accomplishment is considered a positive result given the complexity of the industrial park, where many businesses either lease land directly or sublease it, with diverse assets and complicated legal procedures. Additionally, since July 1, the implementation of a two-tier local government structure has somewhat impacted the progress of tasks, as compensation and support plans are now approved at the commune level.

According to the Project on the Conversion of Bien Hoa 1 Industrial Park, the province will reclaim 329 hectares, divided into three zones: an urban–commercial–service area of approximately 50.5 hectares (zone 1); a provincial political–administrative urban area of approximately 103.5 hectares (zone 2); and another urban–commercial–service area of roughly 175 hectares (zone 3).

Despite several enterprises having proactively relocated and handed over land, several units remain slow to fulfill their commitments, particularly in the two priority clearance zones. Specifically, in zone 1, three out of 11 enterprises have yet to sign agreements or commit to a handover schedule; in zone 2, seven out of 17 enterprises have yet to commit to land handover.

A representative of Bien Hoa Packaging Joint Stock Company, during a meeting with the Provincial People’s Committee in late October, agreed with the relocation policy and said the company had prepared two new sites. However, the complete transfer of existing facilities requires more time. Several other enterprises have cited similar reasons for delaying the handover process.

Nguyen Thi Hoang, Member of the Provincial Party Committee and Vice Chairwoman of the Dong Nai Provincial People’s Committee, emphasized that the relocation of Bien Hoa 1 IP is a strategic task, essential for environmental improvement, urban development, and sustainable economic growth. The consensus and sense of responsibility of enterprises will accelerate project implementation and help realize the vision of a modern, green, and livable urban area along the Dong Nai River.

The conversion of Bien Hoa 1 IP’s land use function reflects the province’s commitment to environmental protection and sustainable development, and serves as a test of corporate social responsibility. With the government already providing every possible condition for production, pledging to accompany enterprises throughout relocation and reinvestment, timely relocation and land handover are tangible demonstrations of cooperation and shared responsibility for sustainable provincial and business development.

By Ban Mai – Translated by M.Nguyet, Minho