Established in 1963, Bien Hoa 1 Industrial Park in An Binh Ward of Bien Hoa City (Dong Nai Province) stands as the nation’s very first industrial zone, sprawling across nearly 340 hectares. After decades of operation, its infrastructure has severely deteriorated and is no longer aligned with contemporary urban development plans. Consequently, local authorities are accelerating site clearance efforts to facilitate its transformation into a modern urban, commercial, and service hub.
In February 2024, the Dong Nai Province People’s Committee officially approved the project to repurpose Bien Hoa 1 Industrial Park into an urban-commercial-service complex and enhance the local environment. The project mandates the relocation of 78 enterprises, with a phased deadline: 14 companies were scheduled to move by December 2024, and the rest by December 2025.
However, as of June 13, inspections conducted at 58 of the 78 businesses by the Provincial Land Fund Development Center revealed that the relocation progress has been sluggish. To date, 43 enterprises have ceased their production activities, while another 15 are currently channeling resources into moving their production lines.
Among those in transition, Dong Nai Chemical Factory, a producer of food additives and Phosphate- and Chlorine-based products, is in the process of moving its manufacturing lines to Nhon Trach 6 Industrial Park in Nhon Trach District, in coordination with the Southern Basic Chemicals JSC.
In a parallel effort, Dielac Milk Factory, a branch of Vietnam Dairy Products JSC. (Vinamilk), is collaborating with the Dong Nai Provincial Land Fund Development Center to survey and catalog its land and assets in preparation for the site clearance.
The project’s implementation requires acquiring land from 335 households. So far, 100 have accepted compensation and relocated, while 130 have consented to move pending payment. However, 125 households have not yet agreed to vacate.
A significant complication involves many families who built homes on land purchased through informal handwritten agreements, making them ineligible for on-site resettlement. Owning no other property, these residents are appealing to the Bien Hoa City People’s Committee for assistance in purchasing subsidized or social housing.
An Binh Ward currently lacks a designated resettlement area for those displaced by the Bien Hoa 1 Industrial Park redevelopment project. The Bien Hoa City People’s Committee is planning to allocate resettlement plots in Tan Phong Resettlement Area, a land parcel on Dieu Xien Street, and a resettlement zone established for the National Highway 1A bypass project, aiming to help eligible households find new housing and swiftly stabilize their lives.
Since early 2025, the Dong Nai Provincial Land Fund Development Center has been working in concert with the An Binh Ward People’s Committee and three advocacy delegations from the Standing Committee of the Bien Hoa City Party Committee. Together with various departments and unions, they have been actively encouraging both businesses and residents designated for resettlement to vacate the Bien Hoa 1 Industrial Park premises.
Business responses to the relocation vary. Bien Hoa Industrial Gas Enterprise has pledged to move upon receiving financial aid, while Viet Thai Electric Cable has halted its furnace to prevent waste. 30 out of 34 factory tenants have terminated their leases, committing to this month’s relocation deadline of July 2025.
Director Phan Van Tu of Kim Vinh Thang Co. Ltd. noted the significant logistical challenges for firms with large-scale machinery, urging state-owned enterprises to lead the way and set a precedent for private and foreign companies to follow.
Vice Chairman Ho Van Ha of the Dong Nai Province People’s Committee affirmed that local functional agencies and the Bien Hoa City People’s Committee are expediting the dismantling and removal of assets belonging to residents and businesses within Bien Hoa 1 Industrial Park to prepare the site for the conversion project.
He emphasized that Dong Nai Province is also focused on crafting comprehensive support and compensation policies to safeguard the rights and interests of the residents, striving to meet the target of completing the relocation of all enterprises from Bien Hoa 1 Industrial Park within 2025.
The relocation project for businesses within Bien Hoa 1 Industrial Park, as approved by the Dong Nai Province People’s Committee, has an allocated budget of over VND7.5 trillion (approximately US$295 million) for corporate compensation and site clearance support, a figure subject to change.
An additional VND1.27 trillion ($50 million) is earmarked for stabilizing the livelihoods of affected workers and funding human resource training for the relocated enterprises.
