Analysis and Evaluation of the Current Status of FDI Attraction in Industrial Parks in Hai Duong Province

Consult and listen to investors' feedback on local procedures and policies to promptly reform when necessary.

Sixth, develop a labor training strategy that is appropriate to the industry in which the locality focuses on attracting investment. Once the strategy is no longer appropriate to the development situation, a new, more appropriate strategy needs to be developed.

Seventh, there must be an organization, apparatus, and staff working in foreign economic affairs in general and FDI in particular who are proficient in their profession and clean in their qualities and ethics. Because this is the bridge between foreign investors and localities, and the cause of all success or failure.

Chapter 2 : ANALYSIS AND ASSESSMENT OF THE CURRENT SITUATION OF FDI ATTRACTION IN INDUSTRIAL PARKS IN HAI DUONG PROVINCE

2.1 OVERVIEW OF NATURAL, SOCIO-ECONOMIC CONDITIONS OF HAI DUONG PROVINCE

2.1.1 Natural conditions

- Geographical location

Hai Duong province is located in the Northern key economic zone, 60 km west of Hanoi capital, 40 km east of Hai Phong port, bordering Bac Ninh and Bac Giang provinces to the north, Hung Yen to the west, Quang Ninh and Hai Phong to the east, Thai Binh to the south. The natural area of ​​Hai Duong is 1,651 km2 (ranked 51/63 provinces and cities nationwide), the terrain is sloping, gradually decreasing from the Northwest to the Southeast in the direction of the Northern Delta. With this feature, Hai Duong is divided into two types of terrain, the accumulated plain and the low mountains. The low mountains account for about 11%, including 13 communes in Chi Linh district and 18 communes in Kinh Mon district, suitable for growing fruit trees, timber trees, and short-term industrial trees. The remaining plain accounts for about 89% of the natural land area due to the alluvium deposited by the Thai Binh River, fertile soil suitable for many types of crops, producing many crops a year. In general, Hai Duong's land fund is not only suitable for agricultural production areas, creating specialized areas with high commodity yields, but also very suitable for building industrial production facilities because the soil structure has good compressibility.

- Water resources

Surface water resources: Hai Duong is quite abundant in the system of large and small rivers, lagoons and canals, distributed throughout the area, which can serve production and daily life relatively well.

- Mineral resources

Hai Duong has potential for non-metallic mineral deposits, with some major minerals in the northeastern region of the province being highly valued, including: cement limestone, construction limestone, cement additive shale, brick and tile clay, and ceramic raw materials. Of the four most important types of raw materials for cement and construction materials, ceramic raw materials, bauxite, peat, and coal.

- Climate and weather conditions

Hai Duong is located in the tropical monsoon zone, hot and humid, divided into 4 distinct seasons. The average annual temperature is 23 0 C, favorable for plant growth, the average annual rainfall is 1500 - 1700 mm.

2.1.2 Socio-economic situation

- Economy

In the past 5 years (2015-2020), the People's Committee of Hai Duong province focused on leading socio-economic development, with the total product in the province increasing by an average of 8.8%/year, higher than the national average. The economic scale is 1.6 times larger than in 2015, ranking 11th in the country. The total average income per capita reached 69.8 million VND, equivalent to about 3,020 USD.

The economic structure has shifted towards industrialization. State budget revenue has increased rapidly. Since 2017, Hai Duong has been one of 16 provinces and cities assigned to balance their budgets and partially regulate the central budget with total state budget revenue in the province in the period of 2016 - 2020 reaching over 83,375 billion VND; domestic revenue reached 63,826 billion VND, an average increase of 11.7%/year.

- Social situation

+ Education and training

Comprehensive education quality is maintained; The number of national excellent students has made remarkable progress. Preparations for the implementation of the new general education program have been well done.

Implementing the Project "Organizing and arranging public kindergartens and general schools in Hai Duong province, phase 2019 - 2021", up to now, 72 kindergartens, primary schools, and secondary schools have been merged to establish 36 new schools, reducing 36 schools compared to the previous school year. The work of building schools that meet national standards has been promoted, the rate of schools that meet national standards continues to increase.

Continue to implement the Project "Vocational training for rural workers in Hai Duong province in the period of 2016 - 2020"; vocational training schools and vocational guidance centers continue to inform and coordinate with labor-using organizations, linking training, vocational guidance and vocational training with labor demand.

+ Health and family planning

Develop plans and organize the implementation of the National Strategy for Pharmaceutical Development to 2020 and vision to 2030 in the province; Project to improve hospital quality under the Medical Support Project for provinces in the Northeast and Red River Delta regions.

Strengthening the management of medical examination and treatment in the province, proactively implementing measures to enhance early detection, diagnosis and treatment of epidemics, preventing widespread epidemics. In 2019, the whole province recorded a number of epidemics with many cases.

Continue to effectively implement the Project on building National Criteria for Commune Health. Up to now, the whole province has 243/264 communes, wards and towns meeting the national criteria for Health, reaching 92% (last year it reached 86.8%).

Food safety and hygiene work is given attention. The 2019 population and housing census was completed. Population communication work was promoted, and many measures were taken to control gender imbalance at birth.

+ Information and communication; culture - sports

Orient information for press agencies in the province and Radio stations in districts, towns and cities. Develop a plan to implement the national press development and management plan until 2025. Information and propaganda activities on mass media are timely, diverse and focused; focus on propagating the Party's guidelines and policies, the State's policies and laws to all people.

Cultural conservation, restoration, renovation and upgrading of relic sites and points have been actively carried out; continued investment in restoration of Con Son pagoda relic; survey and list of proposals for urgent restoration and prevention of degradation of 17 relics, 26 relics proposed for provincial ranking, 02 relics proposed for national ranking. Completed dossiers submitted to the Ministry of Culture, Sports and Tourism for a license to explore, survey and excavate the archaeological relic of Ngu Dai pagoda, Chi Linh city. Developed dossiers of intangible cultural heritage of Suot Temple - Communal House Festival, Hai Duong city. Prepared dossiers of artifacts proposed for recognition as national treasures .

Organize cultural, artistic and sports activities to celebrate major holidays and important events of the province.

+ Labor, employment and social security

In 2019, it is estimated that 35,700 new jobs will be created, reaching 100.6% of the plan, and 4,320 workers will be exported, reaching 100.4% of the 2019 plan. The labor market continues to be consolidated and developed, attracting the participation of 1,217 units with 3,939 recruited workers. Coordinated with the Social Policy Bank Branch to lend 39,432 million VND, with 955 projects and creating jobs for 970 workers to borrow capital.

Inspecting and examining the implementation of labor laws in enterprises, there were 501 recommendations requesting enterprises to overcome shortcomings in labor laws after inspection.

Focus on fully and promptly implementing policies and regimes for people with meritorious services and their relatives; implementing policies on poverty reduction, social protection, child protection, gender equality and prevention of social evils.

The poverty rate in the whole province is 1.9% (down 0.63% compared to 2018; the plan is down 1%); the near-poor households are 2.77% (down 0.43% compared to 2018; the plan is down 0.5%).

Continue to expand the number of participants in social insurance, health insurance, and unemployment insurance; the rate of population participating in health insurance in 2019 reached 87.6% (Plan 89%).

2.2. OVERVIEW OF DEVELOPMENT OF INDUSTRIAL PARKS IN HAI DUONG PROVINCE

Before re-establishment, Hai Duong was an agricultural province. The province's economy was underdeveloped, with poor infrastructure, low production and business efficiency, lack of investment capital, slow structural transformation, and low per capita income.

In order to develop industry, Hai Duong has soon had policies and plans to develop industrial zones associated with raw material areas and plans to synchronously develop industrial zones managed in accordance with Decree 36/CP of the Government. In 2001, the Provincial People's Committee approved the "Industrial development plan in the province for the period 2001-2010" and approved the Project "Building infrastructure for industrial zones in the province for the period 2001-2005" and at the same time established and assigned the Provincial Industrial Zone Management Board to be the focal point for implementing the project. This is the first step in the process of forming and developing industrial zones in the province.

After 18 years of construction and development, Hai Duong province has had 14 industrial parks established (including expanded industrial parks), with a total industrial park area according to the approved detailed construction plan of 2,567.33 hectares.

Of the 14 established industrial parks, 11 have completed infrastructure construction and are in operation with a total planned area of ​​1,732 hectares, a total handed over land area of ​​1,470.23 hectares; a total leased industrial land area of ​​1,018.23 hectares, a total leased industrial land area of ​​over 840 hectares, the average occupancy rate of the industrial parks is about 82% of the handed over industrial land area; the investment rate is over 6 million USD/01 hectare of industrial land; attracting 12 investment projects in construction and infrastructure business with a total registered investment capital of 9,120 billion VND. Specifically as follows:

Table 2.1: Industrial parks in Hai Duong province


STT

Industrial Park

Area (ha)

1

Nam Sach Industrial Park

62.42

2

Dai An Industrial Park (including expansion)

607.22

3

Phuc Dien Industrial Park (including extension)

297.45

4

Tan Truong Industrial Park (including extension)

310.66

5

Viet Hoa Kenmark Industrial Park

46.4

6

Lai Vu Industrial Park

212.89

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Analysis and Evaluation of the Current Status of FDI Attraction in Industrial Parks in Hai Duong Province

Cong Hoa Industrial Park

357.03

8

Lai Cach Industrial Park

132.4

9

Cam Dien - Luong Dien Industrial Park

183.96

10

Kim Thanh Industrial Park

164.98

11

Western Sub-area of ​​Phu Thai Industrial Park

21.7

7

(Source: Hai Duong Province Industrial Parks Management Board)

2.3 ANALYSIS OF FACTORS AFFECTING FDI ATTRACTION IN INDUSTRIAL PARKS OF HAI DUONG PROVINCE

2.3.1 Favorable geographical location

Hai Duong is a province located in the center of the Red River Delta, bordering 6 provinces and cities: Bac Giang, Bac Ninh, Hai Phong, Quang Ninh, Hung Yen, Thai Binh. The province has many national traffic routes passing through such as the Hanoi-Hai Phong railway, National Highways 5, 18, 37, 38; many expressways have been and are preparing to start construction running through the province such as: Hanoi - Hai Phong, Noi Bai - Ha Long expressways, creating great advantages in traffic for Hai Duong. The province also has a natural area of ​​over 1,600 km2 with a population of over 1.7 million people, ranking 3rd in the Red River Delta region in terms of area and 4th in terms of population.

With its location in the middle of the dynamic economic development triangle of Hanoi-Hai Phong-Quang Ninh, Hai Duong has created outstanding potential and advantages to attract the development of many industries such as: supporting industries for shipbuilding, metal manufacturing, energy industry, export manufacturing industry, transportation services, inland ports, logistics zones, import and export of goods and service industry.

These geographical advantages have helped the province attract the attention of foreign investors. When investing in the province, investors will reduce transportation costs, easily trade with other provinces, and facilitate production and business.

2.3.2 Synchronous infrastructure

- Transportation system: The transportation system in the province is quite complete, including railways, waterways, and roads, convenient for travel and economic exchange between regions.

+ By road, there are national highways 5A, 183, 18, Hanoi - Hai Phong expressway running through. The traffic system in districts and cities is also regularly upgraded and renovated to ensure convenient travel.

+ Hai Duong has the Hanoi - Hai Phong railway running through it with 7 stations stopping in the province to help transport goods and passengers from the province to neighboring areas.

+ Waterway: there is 400 km of river for 500-ton ships and boats to pass conveniently. Cong Cau Port with a capacity of 300,000 tons/year and a system of wharves and yards meets the need for easy waterway cargo transportation.

+ The Northern regional international airport is expected to be located in Thanh Mien district, Hai Duong province with a capacity of transporting 30 million passengers/year. It is also being studied by authorities and reported to competent authorities for consideration and investment decision.

- Electrical system

Serving industrial loads accounts for a high proportion in the electricity consumption structure to meet the electricity needs of industrial zones.

Pha Lai Thermal Power Plant with a capacity of 1040 Mw has a fairly complete power grid system, ensuring safe and stable power supply, contributing a significant amount of electricity to the national grid.

- Banking credit system: Including branches of the Industrial and Commercial Bank, the Bank for Agriculture and Rural Development, the Development Investment Bank, the Foreign Trade Bank, the Social Policy Bank, with fast and convenient domestic and international payment relations. The Joint Stock Agricultural Bank and 79 People's Credit Funds meet the exploitation and supply of capital for production activities of the people in the province.

- Water supply and drainage system:

Urban and industrial areas have had enough clean water for production and daily life. Water supply and drainage systems are regularly invested in and upgraded to ensure sustainable industrial development and environmental protection. In addition, a series of centralized water supply projects to serve the domestic water needs at the commune and village level have been implemented.

- Hotel trade system: In the province, there are 18 state-owned enterprises, 12 trade cooperatives, 54 non-state-owned enterprises and 20,298 commercial stores. There is 1 trade center in Hai Duong city, which is a connection point for transactions and trade promotion, information, marketing, market forecasting, consulting, brokerage, negotiating and signing contracts. The hotel and restaurant system includes state-owned, private and other organizations, with full luxury and polite facilities to meet the needs of domestic and international customers.

- Educational facilities: Training school system: The whole province has 13 continuing education centers (12 district-level continuing education centers and 1 provincial continuing education center); 8 District-level General Technical - Career Guidance - Vocational Training Centers (7 public and 1 private); 265 community learning centers in communes, wards and towns; The professional school block currently has 12 schools, of which 4 are vocational secondary schools.

vocational training, 4 colleges and 4 universities with a scale of about 40,000 students. These schools and centers are responsible for training human resources in many fields such as agriculture, forestry, fishery, industry, finance and accounting, culture, society, foreign languages, information technology, services, etc. In recent years, vocational training, colleges and universities in the province have increased in both quality and quantity of students and teachers. This shows that the people's need for learning and training is increasing, to keep up with the general development of the province, to meet the requirements of production and management levels of investors.

Synchronous infrastructure helps foreign investors not to spend time investing in infrastructure when they first start investing, thereby significantly reducing the costs that investors have to pay. Moreover, developed and synchronous infrastructure helps FDI projects to be carried out quickly and conveniently.

2.3.3 Abundant and quality human resources

Hai Duong is a province with advantages in human resources, especially human resource qualifications. According to statistics, the proportion of trained workers in Hai Duong by 2020 will reach 40% of the workforce, shown in the following table:

Table 2.2: Current status of labor force by training level in Hai Duong


Criteria

2017

2018

2019

2020

I. TOTAL NUMBER (people)

888.666

942,186

961,315

971,600

II. STRUCTURE (%)

100

100

100

100

1. Untrained

77.50

71.00

62.00

60.00

2. Vocational training

1.70

2.50

4.47

5.00

3. Technical workers are not equal

15.00

17.50

18.68

19.00

4. Vocational school

2.00

2.70

4.81

5.00

5. Vocational College

0.30

0.40

0.84

0.86

6. Intermediate professional

1.80

2.80

3.15

3.16

7. College

0.95

1.40

2.05

2.10

8. University

1.05

2.00

3.87

4.00

9. Above university

0.02

0.06

0.12

0.15

(Source: Hai Duong Statistical Yearbook)

The total number of workers in Hai Duong tends to increase quite rapidly over the years in the period from 2017 to present. Accordingly, in 2017, the whole province had 888,666 workers, in 2018 it increased to 942,186 workers (an increase of 6.02% compared to 2017); by 2019 and 2020, the growth rate of the labor force reached 2.03% and 1.1% respectively. The labor level is highly appreciated and is increasing in level:

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