Binh Phuoc seeks investors

Southern Binh Phuoc Province is seeking investment for three industrial zones, which needs a least VND448 billion (US$24 million).

The province also wants investment in its water infrastructure in the zones along National Highway 13, Chon Thanh Town and Dong Phu District as well as Hoa Lu Border-gate Economic Zone.

The call for investment was made at an investment promotion conference held in Hanoi on Saturday.

Binh Phuoc People's Committee chairman Truong Tan Thieu told the potential investors that his province, located in the southern key economic zone, was advantageous for industrial development and investment.

The province was attempting to shift its economic structure toward industrialization, Thieu said, adding that it had set aside more than 5,200ha of land at 18 industrial zones for development.

Investors could also invest into the electronics, textile and garment sector.

The chairman assumed that local authorities would create the best conditions for investors by speeding up administrative procedure reforms and improving infrastructure facilities.

During the past five years, the province has achieved significant accomplishments in all fields. Its average GDP growth rate reached 13.2 percent and industrial production increased by 24 percent.

Currently, the province is home to 3,000 projects including 1,000 foreign-invested projects worth $1.57 billion.

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Firms fail to meet export orders due to labour shortage

Enterprises in HCMC's export processing and industrial zones are struggling to complete increasing orders because they are short of workers.

Textile, footwear, electronic assembly and seafood processing establishments typically receive more orders towards the end of the year.

Nguyen Thanh Tung, director of the Job Opportunity Centre under the HCMC Export Processing Zones Authority (HEPZA), said enterprises needed 49,000 workers from now until the end of the year, but the centre can only meet 70 percent of this demand.

Around 300 enterprises in textile, footwear and electronic assembly are facing severe labour shortages. The Tan Thuan export processing zone alone needs 10,000 workers badly.

Besides non-skilled labour, enterprises are also having difficulties in finding suitable candidates for middle management positions, from commercial to production ones.

"The middle management force accounts for 10 percent of recruitment needs and despite the low level of scarcity; there is aggressive competition between enterprises," Tung said.

Tung said that to improve the situation that has been a constant headache for enterprises in recent years, Hepza will only accept new projects that deploy high technology, especially in mechanical, electrical and electronics.

Experts have said that enterprises need to effect changes in their salary policies, improve other working conditions and apply technological innovations.

The demand for labour is expected to rise with the city planning to build seven new IZs and expand existing IZs to cover an additional area of 3,000ha.

Furthermore, the city also faces stiff competition from neighbouring provinces which have also opened new IZs. HCMC now has three export processing zones and 10 industrial zones with 1,200 projects that employ 252,000 workers.

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Firms fail to meet export orders due to labour shortage

Enterprises in HCM City's export processing and industrial zones are struggling to complete increasing orders because they are short of workers.

Textile, footwear, electronic assembly and seafood processing establishments typically receive more orders towards the end of the year.   

Nguyen Thanh Tung, director of the Job Opportunity Centre under the HCM City Export Processing Zones Authority (HEPZA), said enterprises needed 49,000 workers from now until the end of the year, but the centre can only meet 70 percent of this demand.   

Around 300 enterprises in textile, footwear and electronic assembly are facing severe labour shortages. The Tan Thuan export processing zone alone needs 10,000 workers badly.   

Besides non-skilled labour, enterprises are also having difficulties in finding suitable candidates for middle management positions, from commercial to production ones.   

"The middle management force accounts for 10 percent of recruitment needs and despite the low level of scarcity; there is aggressive competition between enterprises," Tung said.   

Tung said that to improve the situation that has been a constant headache for enterprises in recent years, Hepza will only accept new projects that deploy high technology, especially in mechanical, electrical and electronics.   

Experts have said that enterprises need to effect changes in their salary policies, improve other working conditions and apply technological innovations.   

The demand for labour is expected to rise with the city planning to build seven new IZs and expand existing IZs to cover an additional area of 3,000ha.   

Furthermore, the city also faces stiff competition from neighbouring provinces which have also opened new IZs.   HCM   City   now has three export processing zones and 10 industrial zones with 1,200 projects that employ 252,000 workers./.

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Industrial zone attracts more local investors

HA NOI — Domestic investment in the HCM City Export Processing and Industrial Zone (HEPZA) was twice that of Foreign Direct Investment (FDI) in the first seven months of the year, reports the zone's management authority.

Domestic investors provided about US$235 million for 35 projects while their money for 19 existing projects added another $62 million.

FDI was about $136.3 million for 27 projects.

HEPZA Authority deputy director Nguyen Tan Phuoc explained: "The FDI decrease resulted from the global financial crisis and the authority's new investment policy which discourages labour-intensive projects that do not utilise technology."

But domestic enterprises had taken advantage of the opportunity to expand their investment and improve existing projects.

About $2.1billion has been injected into export processing and industrial zones during the past five years.

Of this, domestic investment has totalled $1.32 billion.

Licences have been granted or implemented for almost 1,200 projects in HCM City's export processing and industrial zones so far this year.

Domestic investors have financed 710 projects and FDI 447.

In the next five years, HCM City will bring into operation a further seven industrial zones to add to the existing 15 operational industrial parks and export processing zones, including Dong Nam, Phuoc Hiep and Bau Dung.

HEPZA Authority said that the most challenging factor in attracting FDI was external infrastructure, transport systems, limited land, rental prices and a shortage of electricity.

HCM City targets to reach FDI of $8.4 billion for 2010. — VNS

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