Prime Minister Nguyen Tan Dung has issued instructions asking for tighter management and increased effectiveness of existing economic zones, industrial zones and industrial clusters, rather than expand, re-adjust or establish new EZs, IZs, and ICs.
Accordingly, as of now, no new economic zones, industrial zones, and industrial clusters will be constructed.
The Prime Minister has asked the Ministry of Planning and Investment to coordinate with related ministries and agencies to review activities of EZs, IZs, ICs, and find solutions for those that are not working effectively, wasting land and polluting the environment.
PM also asked the ministry to strengthen supervision of regulations on environmental protection in the economic zones, industrial zones, and industrial clusters.
Among the solutions being considered to avoid stagnation in existing EZs, IZs and ICs, are toughening of regulations, revoking of business licences, changing investors and narrowing areas allocated to the above.
The next step will be to retain only those zones that are working effectively, and develop them further under a plan targeted for the year 2020, while those not effective will be streamlined or re-vamped so as to avoid waste.
The Ministry of Planning and Investment has been asked to submit a plan to develop EZs and IZs till the period 2020, to present to the Prime minister during the fourth quarter of 2012.
“This year is going to be a tough year, but will give us an opportunity to carefully review all EZs, IZs and ICs and find solutions to make them more attractive to foreign investors in future,” said an official.
At present, Vietnam has 15 EZs along the seacoast, 28 EZs at border areas and 800 ICs. They attract 40 per cent of the nation's FDI inflow, contribute 30 per cent of industrial production value, 20 per cent of export turnover and create 15 per cent of national labour resources.
However, many of them have only been able to use 30-40 per cent of their originally allotted area, resulting in wastage of land and adding to environmental pollution.
