Industrial Parks Struggle to Attract Tenants in Binh Thuan Province
Binh Thuan Province in Vietnam is home to six fully equipped industrial parks, but only 37% of their total area is currently occupied, according to local authorities.
Low Occupancy Rates Impede Development
During an investment promotion workshop for industrial parks in Binh Thuan, Nguyen Hong Hai, Vice Chairman of the provincial People’s Committee, revealed that out of the six industrial parks with complete infrastructure, only Phan Thiet Industrial Park Phase 1 has reached full occupancy with 39 investment projects. The remaining industrial parks still have a significant amount of vacant land.
For instance, Phan Thiet Industrial Park Phase 2 is almost 74% occupied by 11 projects, while Ham Kiem I and II Industrial Parks have occupancy rates of 60% and 23% respectively. Song Binh Industrial Park, which has completed its technical infrastructure, currently has a 42% occupancy rate with three titanium processing projects. Meanwhile, Tuy Phong Industrial Park is undergoing infrastructure development and will soon invite secondary investors.
In total, Binh Thuan Province’s industrial parks have attracted 87 projects, with a total investment capital of nearly VND16,000 billion. Out of these projects, 66 are already in operation.
Một khu công nghiệp tại huyện Hàm Tân, tỉnh Bình Thuận. Ảnh: UBND tỉnh Bình Thuận
The Future of Industrial Parks in Binh Thuan
Binh Thuan Province has a total of nine industrial parks, with a planned area of over 3,000 hectares approved by the Prime Minister. Apart from the six completed projects mentioned above, three other industrial parks, namely Son My I and II, and Tan Duc, are currently in the preparation and land clearance stages.
However, even the existing industrial clusters in the province have low occupancy rates. Binh Thuan has 36 planned industrial clusters, covering a total area of 1,183 hectares. Among these, 15 projects are currently under construction or have completed infrastructure development. Nevertheless, the overall occupancy rate stands at only about 36%, with a total area of over 270 hectares for 175 secondary projects.
Phung Huu Cu, Head of the Provincial Industrial Parks Management Board, acknowledged the low occupancy rates in the industrial parks, which hinder investment attraction. This is primarily due to the lack of synchronized infrastructure, small-scale projects, limited adoption of new technologies, and low investment costs of around VND42 billion per hectare.
The provincial authorities aim to enhance the investment environment, resolve difficulties faced by investors, and expedite administrative procedures. Binh Thuan Province, recognizing the industrial sector as one of its three pillars of economic development, is committed to completing the infrastructure of existing industrial parks and establishing high-tech industrial parks.
With its vast land reserves and efforts to improve infrastructure and transportation, Binh Thuan Province is poised to attract more investments and promote industrial development in the coming years.
Source: Business Today