The role of industrial parks in sustainable industrial development in Binh Duong province

Sep 08, 2023
The role of industrial parks in sustainable industrial development in Binh Duong province

With the industrial development strategy as the foundation for a breakthrough in economic development, over the past 25 years, Binh Duong province has had a remarkable transformation and achieved great achievements in socio-economic development. To realize the goal of Binh Duong province becoming a modern industrial center by 2030 and a smart city by 2045, many important issues have been raised, attracting a lot of attention from key planners. development books, researchers and businesses. In particular, the industrial zone system is considered as the backbone of the economy, an important issue, and plays a decisive role in the success of Binh Duong.

In Binh Duong province, there are 33 planned industrial parks with a total area of ​​15,790 hectares.

Introduce

Since the re-establishment of the province in 1997, Binh Duong has achieved many positive results in implementing the innovation policy, concretized by open policies, paving the way for the process of industrialization and modernization (CNH, OS) suitable for local advantages. After more than 25 years of development, Binh Duong has made strong progress in all fields and become a modern industrial province.

In particular, the Province has a large-scale, modern urban infrastructure system, attracting both domestic and foreign investment capital. Binh Duong is also a typical province in simplifying administrative procedures, reducing document processing time, creating the most favorable conditions for businesses, contributing to improving the business environment and raising productivity index. Provincial competitiveness (CPI), national competitiveness.

According to the results of evaluating the competitiveness index of the Vietnam Confederation of Commerce and Industry (VCCI) in 2020, Binh Duong province is in the group of 5 provinces and cities with the highest PCI index, including: Quang Ninh (75.09 points). ); Dong Thap (72.81 points); Long An (70.37 points); Binh Duong (70.16) and Da Nang (70.12).

Over the past years, Binh Duong has maintained a high economic growth rate and higher than the national average. With the position of "the leading industrial province" of Vietnam, the structure of industry and construction accounts for 67.09% of the economic structure, Binh Duong province always focuses on promoting export-import activities with the market. Large market of more than 180 partners around the world.

During the outbreak of the COVID-19 pandemic, the total export and import turnover of Binh Duong province still maintained positive growth in 2020, 2021 and 2022. In 2022, the total import and export turnover of Binh Duong accounting for 8.2% of the country's total export-import turnover, with a trade surplus of 9.14 billion USD.

Up to now, Binh Duong is one of the localities with the highest urbanization rate in the country (82%) with 04 cities and 01 town, possessing synchronous and modern transportation infrastructure. In the province, there are 33 industrial parks (IPs) planned with a total area of ​​15,790 hectares, of which 27 IPs have been put into operation with a total area of ​​more than 10,962 hectares, accounting for 1/4 of the area of ​​the Southern Industrial Park; 9% in quantity and 13% in industrial park area in the country.

The role of industrial parks in sustainable industrial development

Industrial parks play a very important role in the socio-economic development of Binh Duong province in general, and for the sustainable industrial development of the province in particular, the role of the industrial park system is evaluated in several aspects. as follows:

Firstly, Industrial parks are an important channel to attract investment capital, especially direct investment from abroad, concentrating industrial enterprises in a defined area. Originating from the characteristics of industrial parks with advantages in geographical location, transportation and service infrastructure, favorable socio-economic conditions along with the management mechanism and policy system of industrial parks are given more incentives than other places, therefore, the development of industrial parks is the main way to attract investment from businesses and economic groups in the development orientation aimed at large markets in other countries. developing.

Recently, Binh Duong has oriented to develop sustainable industrial parks according to the "3 in 1" model: industrial park - urban area - service area. The Province's industrial parks have synchronous, modern, and environmentally sound infrastructure; has a convenient location, connected to important traffic axes with the city. Ho Chi Minh and surrounding areas have attracted many large businesses and multinational corporations to invest. In 2022, although there are still many difficulties and challenges, FDI capital will continue to "flow" strongly into the Province, the industrial index continues to grow well, industrial parks are estimated to attract more than 2.57 billion USD, increasing 58% over the same period in 2021, reaching 214% of the year's plan.

Second, Industrial parks contribute to modernizing the infrastructure system, implementing urbanization, and forming industrial centers and cities. With attractive investment measures, quick administrative procedures, and incentives for businesses, Binh Duong province has attracted capital flows to invest in completing and synchronizing construction projects. The infrastructure in the industrial zone is quite favorable. The diversity of types of enterprises participating in investing in the construction of industrial park infrastructure has contributed to the modernization of industrial park infrastructure, spreading to the formation of industrial centers and urban areas. By the end of 2022, the total investment capital for construction of the industrial park system will reach 3,697 billion VND. Industrial parks have leased land and factories with a total area of ​​216 hectares, attracting foreign investment of 1.9 billion VND. USD (accounting for 66.9% of the whole province). Enterprises disbursed 2.3 billion USD, revenue reached 39.4 billion USD, export reached 23.2 billion USD (accounting for 65% of the whole province).

In recent times, the synchronous development and completion of technical infrastructure in industrial parks in the province has, on the one hand, attracted new investment projects and on the other hand, created conditions for businesses to expand their scale to increase production capacity. export and competition. At the same time, the infrastructure inside and outside the Industrial Park has contributed to creating a network of links and connections between localities as well as planning and implementing new residential area planning, satellite urban areas... Social infrastructure works to serve the lives of workers and residents in the vicinity of the Industrial Park such as: housing, schools, hospitals, entertainment areas...

Third, Industrial parks contribute to creating jobs, stabilizing and increasing income for workers, promoting hunger eradication and poverty reduction in the process of industrialization and modernization. Developing industrial parks and attracting businesses to focus on production in this model has created a large number of jobs. People have jobs, which means they have income, the market is expanding, attracting increased investment, stimulating production and business and creating new labor needs for businesses.

According to statistics, the number of jobs in industrial parks increases along with the development of the number of industrial parks and investment projects in industrial parks. Binh Duong currently has 50,000 enterprises with more than 1.2 million workers from most provinces and cities nationwide. Besides, with 27 industrial parks, there are over 2,000 enterprises, 485,670 Vietnamese workers and 14,900 foreign workers. Over the past many years, in areas with industrial parks, the unemployment rate has decreased significantly, which has a positive impact on hunger eradication and poverty reduction, while also contributing to reducing social evils caused by unemployment. According to the survey, about 40% of workers working in industrial parks are low-income people from many localities. Thus, the expansion of industrial parks not only contributes to creating jobs and improving the quality of human resources, but also contributes significantly to stabilizing and increasing income, promoting hunger eradication and poverty reduction in the country as a whole. general and Binh Duong in particular.

Fourth,  IZs contribute to the transformation of the local economic structure towards modernity, rationality and efficiency. Economic restructuring is one of the two basic contents of the process of industrialization and modernization. Economic restructuring towards modernity must shift towards reducing the proportion of agriculture, forestry and fishery, and increasing the proportion of industry, construction and services. To achieve this goal, it is necessary to continue to perfect the system of mechanisms and policies to develop industrial zones to attract domestic and foreign investment flows.

Industrial park is an area where businesses and industrial services are concentrated. In terms of quantity, industrial zones contribute to raising the proportion of industry in the sectoral economic structure of the economy. In terms of quality, the industrial park is also an area that is focused on attracting projects with large capital content, high technology level, clean and environmentally friendly. Currently, many industrial parks have become "brands", attracting many large businesses and multinational corporations to invest.

The development of industrial zones also actively contributes to raising the proportion of industrial service industries such as insurance, consulting, construction, design, transportation... These service industries are constantly improving their quality and meeting the requirements of the industry. meet the needs of enterprises inside and outside the IZ, in line with the trend of international integration in the new context of Binh Duong.

Fifth, Industrial parks contribute to transferring technology, management experience, building and developing culture and industrial style for a part of human resources in the process of international economic integration. Industrial parks are seen as a factor promoting the process of technology transfer from investing countries to receiving countries. In Vietnam, the policy of inviting foreign investment has impacted the process of absorbing advanced technology and management experience of industrial corporations when they invest in industrial parks. Although, in industrial parks, foreign enterprises mainly carry out production, consumption, textile and garment activities, leather shoe processing, electronic assembly... followed by mechanical and electrical component production. However, the process of technology transfer still takes place through many forms such as: training workers to use machinery, equipment, production technology, bringing modern machinery to carry out production. production for the purpose of creating high labor productivity... Enterprises in industrial parks can transfer or assign advanced machinery, technological lines or technical instructions to local suppliers or manufacturing companies. Product details of the Industrial Park.

On the other hand, FDI enterprises in industrial zones also attract a large number of Vietnamese workers to important positions, this highly qualified management force is absorbed with modern technology and management methods, advanced management skills... This management team, after a period of experience and moving to work in domestic enterprises, or starting a business on their own, will apply their knowledge of technology and management accumulated in the production process, on the one hand, it will create the operational efficiency of enterprises, on the other hand, create new spillover effects for enterprises of other economic sectors, thereby making a positive contribution to the improvement of business performance. high level of technology, management, industrial culture... for the locality.

Along with the process of attracting workers to work in industrial parks is the process in which workers are trained to improve their skills, industrial style and are fostered in knowledge and skills to work effectively. in industrial environments. The pervasiveness of this department in the long term creates a positive change in the labor culture of people in the vicinity of the Industrial Park, gradually changing their style and routine towards the industrial direction.

Conclude

Its industrial parks have been contributing a great role to socio-economic development, making Binh Duong one of the leading industrial provinces in the country. To realize the goal of implementing the sustainable development strategy by 2030, Binh Duong becoming a modern industrial center and moving towards a smart city by 2045, many important issues have been raised for the province. industrial zone system of the province. In particular, strategic orientations and appropriate steps will be the necessary premise and guideline to help Binh Duong province be ready for new breakthroughs for rapid and sustainable socio-economic development, contributing to into the common prosperity of the southern key economic region and the whole country.

References:

Binh Duong Provincial Statistics Department (2021), Binh Duong Provincial Statistical Yearbook, Statistics Publishing House, Hanoi;
Binh Duong Provincial Statistics Department (2022), Binh Duong numbers and events, 25 years of construction and development, Statistics Publishing House, Hanoi;
Binh Duong Provincial Statistics Department (2022), Report on socio-economic situation in the fourth quarter and the whole year 2022, No. 1017/BC-CTK dated December 26, 2022;
Binh Duong Provincial People's Committee (2022), Report on the socio-economic situation, defense and security in 2022, mission directions for 2023, No. 34/BC-UBND dated December 2, 2022.

Source: Financial magazine

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