Impact of Industrial Parks on Farmers' Lives in Pho Yen District

- The district's economy has high growth, the district's economic structure has shifted in a positive direction, rapidly increasing the proportion of industry and services, and has been forming large industrial zones with diverse and rich industries.

- The land fund is quite large and favorable for the development of non-agricultural industries, especially those that require a lot of land as input.

- The cadres and people of all ethnic groups in Pho Yen district have a tradition of solidarity, love of learning, experience and creativity in production and overcome all difficulties to build a rich and strong homeland of Pho Yen.

- The labor force is quite abundant, with a fairly good cultural level due to universal lower secondary education, and favorable conditions for vocational training due to proximity to provincial and central training facilities.

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- Regarding investment attraction policy: In recent years, with the investment attraction policy, Pho Yen district has been actively implementing administrative reform, improving the investment environment, planning socio-economic development, general planning and detailed planning of industrial parks, industrial clusters, urban areas, and eco-tourism areas, in order to meet the requirements of investors.

b. Difficulties

- Low economic starting point, low income and purchasing power of people and small equity.

- Farmers' professional and technical qualifications are still low.

- Agricultural workers have not yet formed an industrial style, so they have not met the requirements of the labor market.

- The current geographical advantages have not been fully exploited due to weak infrastructure and unattractive macro policies for investors.

- The terrain and climate are suitable for multi-cropping production, but also cause many difficulties in building infrastructure. If the communes in mountainous areas

Without proper farming methods, erosion and leaching will lead to degradation of soil resources.

- The product industry does not have a stable output market, so businesses are not confident in investing capital, and the ability to access the market of products is still limited.

- The district's economy has problems that often arise such as imbalance between production methods and production forces, lack of investment capital, unexploited potential, surplus labor but lack of highly qualified labor, outdated technology and equipment, and uncompetitive products.

- Transport infrastructure, irrigation, drainage, banking and financial services... have not kept up with the development needs of society.

- In the fields of culture, society, national security and defense, the problem of social evils is becoming increasingly complicated, the number of unemployed workers due to loss of agricultural land tends to increase, the level of education is low, the lives of some people are still difficult and unevenly distributed, the gap between rich and poor is still clear, and commodity production is still slow to develop.

- Economic structure: agriculture still accounts for a large proportion, industry is increasing but its proportion is still small. Rare mineral resources are almost gone, so conditions for industrial development are limited.

2.2. IMPACT OF INDUSTRIAL PARKS ON THE LIFE OF FARMERS IN PHO YEN DISTRICT

2.2.1. Current status of industrial park development in Pho Yen district

2.2.1.1. General overview of industrial parks in Pho Yen district

Concentrated industrial zones

1, Nam Pho Yen Industrial Park

Nam Pho Yen Industrial Park has been listed in the List of priority investment research programs and projects (2006-2010 period) issued with Decision No. 58/2007/QD-TTg dated May 4, 2007 of the Prime Minister.

Government, Approving the master plan for socio-economic development of Thai Nguyen province to 2020.

Nam Pho Yen Industrial Park is determined to expand its area on the basis of 02 small industrial parks in Trung Thanh commune; Nam Pho Yen small industrial park in Thuan Thanh commune and Tan Dong small industrial park according to Decision No. 88/2004/QD - UB dated January 13, 2004 on approving the general planning scheme for small industrial parks in Thai Nguyen province.

- Name: Nam Pho Yen Industrial Park - Thai Nguyen province.

- Area scale: 310 ha.

- Location: Located in the south of Pho Yen district, bordering Soc Son district, Hanoi capital - 25 km from Noi Bai airport, including the following areas:

Area A: Trung Thanh commune - area of about 50ha determined on the basis of Trung Thanh small industrial park.

Area B: In Thuan Thanh commune - area of about 82ha determined on the basis (including the area of enterprises: Quan Thanh Joint Stock Company; Vinh Phuc Food and Beverage Joint Stock Company, PRIME Pho Yen Joint Stock Company, Xuan Kien Joint Stock Company (VINAXUKI). Currently, areas A and B have been put into operation and enterprises located in the area have stabilized production.

Area C: Trung Thanh commune - area of about 48 hectares determined on the basis of Trung Thanh small industrial park.

Area D: Dong Tien commune - area 130 ha

- Investor: Nam Pho Yen Industrial Park has 2 enterprises registered to invest in technical infrastructure business of the Industrial Park specifically as follows:

+ Le Trach Infrastructure Development Investment Company Limited (Taiwan): Investing in area A (area 50 ha) and area C (area 48.5 ha).

+ Xuan Kien Company Limited - VINAXUKI: Investing in area B (area of 40 hectares out of 131.5 hectares of this area).

Currently, the investor is carrying out site clearance and leveling.

- Nature of the industrial park industry: Automobile assembly, mechanics, electronics, food and beverage processing; livestock and poultry slaughter; fast food processing; pharmaceuticals; medical instruments; veterinary instruments; textiles, footwear, handicrafts; gas filling; concrete structures, construction materials production.

- Technical infrastructure of Nam Pho Yen Industrial Park:

The location of Nam Pho Yen Industrial Park Planning is a favorable location near National Highway No. 3 and the connection point of Hanoi - Thai Nguyen Expressway, near Da Phuc Port Cluster, near Noi Bai International Airport, national power grid; water supply is Cong River (near the Industrial Park) and is also the place to drain wastewater after treatment.

2, Tay Pho Yen Industrial Park

This is a newly identified area for the establishment of an industrial park. The People's Committee of Thai Nguyen province has issued a document of agreement and permission to prepare a detailed planning dossier for the high-tech industrial park.

- Name: Tay Pho Yen High-tech Industrial Park - Thai Nguyen province.

- Area scale: 320 ha.

- Location: Minh Duc, Dac Son, Van Phai communes, Pho Yen district.

- Nature of the industrial park industry: Attracting high-tech industries, auto parts manufacturing, auto assembly, defense industry...

- Industrial park technical infrastructure:

This is an industrial park located in the west of Pho Yen district, away from densely populated areas. There is a national power grid system passing through; Provincial Road 261 of Thai Nguyen province has been constructing the inter-district road Pho Yen - Dai Tu - Dinh Hoa. With an area of 320 hectares, investors will have enough area to construct all works and technical infrastructure to serve the industrial park independently: Electricity supply, water supply, drainage,

Wastewater treatment plant and works: Housing for workers and other social infrastructure works serving the industrial park as well as neighboring residents.

3, Yen Binh Industrial Park: In the process of site clearance.

- Location: located in Pho Yen and Phu Binh districts, Thai Nguyen province.

+ North: adjacent to Provincial Road 261

+ East: Bordering Cau River

+ South: adjacent to Cau River

+ West: adjacent to Hanoi - Thai Nguyen railway and National Highway 3. Total industrial park area 2,000 ha

- Investor: Yen Binh Investment and Development Joint Stock Company

- Advantages: Existing and planned main traffic routes include: National Highway No. 3 and Hanoi - Thai Nguyen Expressway, Hanoi - Thai Nguyen railway, provincial road 261, provincial road 266, planned road connecting National Highway No. 37 with National Highway No. 3, 10.2 km long. 50 km from Hanoi center, 20 km from Noi Bai International Airport; 4.5 km from Da Phuc River Port; 135 km from Hai Phong Port.

Power supply: The main power source for the area is the 35 kv medium voltage line following provincial road 261 and provincial road 266. In addition, passing through the west of the research area is a 110 kv line in the North-South direction.

The ability to connect to provincial and national infrastructure is very convenient. There is a large human resource to meet development needs.

Industrial clusters

1, Da Phuc Port Industrial Park: Located in Thuan Thanh commune. Scale 95.4ha; Investment capital 480 billion VND.

2, Tan Dong Industrial Park: Located in Tan Dong commune. Scale 100ha; Investment capital is about 3,600 billion VND.

3, Bac Son Industrial Park: Belongs to Bac Son Town. Scale 6.6ha; Investment capital is about 130 billion VND.

4, Tan Huong - Thong Thuong Industrial Park: Dac Son commune. Scale 47ha; Investment capital about 150 billion VND.

5, Van Thuong Industrial Park: Located in Hong Tien commune. Scale 69ha and divided into 2 clusters: Cum 12A area 47ha, cluster 12B area 22ha; Investment capital is about 200 billion VND.

6, Bai Bong Industrial Park: Belongs to Bai Bong Town. Scale of 4ha includes 2 small clusters: cluster 12A with an area of 2ha, cluster 13B with an area of 2ha; Investment capital is about 120 billion VND.

2.2.1.2. Investment incentive policies to develop industrial parks in Thai Nguyen province

1. Incentives on land rental prices and land rents

Average land rental price excluding infrastructure fee is not more than 10 USD/m2 / 50 years; with infrastructure cost is not more than 20 USD/m2 / 50 years, land rental price is stable for 05 years.

Land rent may be exempted for the entire project implementation period or 15 years, 11 years, 07 years, 03 years depending on the project portfolio and investment location.

2. Corporate income tax incentives Tax rates and tax incentive periods:

Depending on the project list and investment incentive location, a tax rate of 10% for 15 years or 15% for 12 years or 20% for 10 years will be applied from the date of commencement of production and business. After the incentive period expires, enterprises will pay tax at the normal tax rate.

Corporate income tax exemption from taxable income.

Depending on the project list, labor use and investment location in the province, tax exemption applies for the first 02, 03 or 04 years and a 50% reduction in tax payable for the next 02, 03, 05, 06, 07, 08 or 09 years. In addition, enterprises are also exempted from corporate income tax when implementing scientific research and technology development contracts.

3. Incentives on import tax and value added tax

Exemption from import tax and VAT on equipment, machinery, specialized means of transport in technological lines that are not yet produced domestically and are imported to create fixed assets; Imported raw materials to produce export products or supply to enterprises directly producing export products.

4. Measures to support investors

Support training costs for local workers at the rate of 500,000 VND/person.

Clean land handover; meet traffic conditions, electricity and water to the industrial park fence.

2.2.1.3. Policies for site clearance and stabilizing the lives of people in affected areas

Issued together with Decision 2044/2005/QD-UBND dated September 30, 2005 are regulations on compensation, support and resettlement when the State recovers land in the area according to Decree No. 197/2004/ND-CP dated December 3, 2004 of the Government.

Chapter II: Land compensation and support

Article 10: Compensation and support for agricultural land of households and individuals 1. Implementing Article 10 of Decree 197/2004/ND-CP dated December 3, 2004

of the Government and point 4 part II of Circular No. 116/2004/TT - BTC dated December 7, 2004 of the Ministry of Finance.

2. Agricultural land limit: implemented according to Article 70 of the 2003 Land Law, Article 69 of Decree 181/2004/ND-CP.

3. Households and individuals using land that the State previously decided to manage, but in reality has not managed or divided to lend to households and individuals currently using for agricultural production, compensation and support are calculated as follows:

a, For land before October 15, 2003 that is still used for agricultural production, support will be determined at the level of agricultural land compensation (excluding support amounts).

b, For the period from October 15, 2003 to July 1, 2004, if the land is still used for agricultural production, support will be provided at 70% of the agricultural land compensation level (excluding support payments).

4. Agricultural land interspersed in residential areas, garden and pond land adjacent to residential land in residential areas as prescribed in Clause 2, Article 10 of Decree 197/2004/ND-CP and in Section 4.3, Point 4, Part 2 of Circular 116/2004/TT-BTC, compensation is calculated according to the price of agricultural land for growing perennial crops of grade 2 and is additionally supported as follows:

a, Agricultural land on the same plot as residential land but not re-identified as residential land will be supported with 50% of the difference in price of residential land compared to adjacent compensated agricultural land in the same location.

b. Garden and pond land that originates from the same plot as residential land but is not determined to be residential land will be supported with 30% of the difference between the price of residential land and the compensated agricultural land adjacent to the same location.

c, Garden and pond land adjacent to land in residential areas, agricultural land interspersed in residential areas is supported with 20% of the difference between the price of residential land and the compensated agricultural land adjacent to the same location.

d. If the support level in clauses a, b, c of this clause is lower than the provisions in clause 5 of this article, it shall be calculated according to the provisions in clause 5 of this article.

5. Agricultural land in urban areas not covered by Clause 4 of this Article, compensation is calculated according to the agricultural land category under management and additional support is provided as follows:

a, Level 55,000 VND/m2 for Hoang Van Thu and Phan Dinh wards

Phung, Trung Vuong, Quang Trung, Dong Quang of Thai Nguyen City. b, Level 45,000 VND/m2 for Gia Sang, Tuc Duyen, Tan Wards

Thinh, Thinh Dan, Quang Vinh of Thai Nguyen City.