According to the management board of Kon Tum Economic Zone (KT EZ), there are currently 2 Industrial Zones (IZs) in the province, Hoa Binh and Sao Mai (both in Kon Tum city), 5 Economic Zones (EZs) and the Bo Y International Border Gate EZ (in Ngoc Hoi district) operating.
Up to now, these IZs, EZs have attracted 104 investment projects with a total registered capital of approximately 2,740 billion VND, of which the realized capital reached 1,453 billion VND; the EZs have also attracted 43 projects from organizations and enterprises (with 28 projects currently operating).
Despite being invested for a long time, the entire planned land of Kon Plong Industrial Cluster is still a forest.
Previously, the IZs, EZs, and EZs in Kon Tum province were evaluated to have high potential in attracting investment from organizations, individuals. However, recently, the inspection team of the Standing Committee of the People’s Council of Kon Tum province checked the planning and investment work in these IZs, EZs, and EZs in the area, and found many obstacles that cause serious waste of resources here.
Specifically, each year, enterprises in IZs, EZs contribute about 76.5 billion VND to the state budget, while enterprises in EZs contribute about 2.9 billion VND to the budget. According to the assessment of the inspection team, compared to the potential and the state investment capital for infrastructure construction, enterprises investing in IZs, EZs, and EZs and contributing to the budget are still low.
Kon Tum province currently has 6 unused EZs. Kon Tum proposed to the central government to adjust the scale of Bo Y International Border Gate EZ from 70,438 hectares to only 16,000 hectares, and this process has not been completed since 2014; The 100-hectare land fund at Dak To IZ (Dak To district) has not attracted investment, causing waste of land resources.
Meanwhile, Dak La EZ has only 7 rented enterprises, reaching a ratio of over 37% of the area. As for Kon Plong EZ (Kon Plong district), it has implemented investment in roads, power systems, water, and mine clearance with a total cost of over 4.1 billion VND, but this cluster has not yet been put into operation.
The Dak La EZ currently has only 7 enterprises, reaching a ratio of over 37% of the area.
Talking with Tien Phong, a representative of the Management Board of Investment Project Construction of Dak Ha district (managing Dak La EZ) said that since being assigned to manage, the board has not received any revenue from operating enterprises in the EZ, while having to bear additional costs for operating the centralized wastewater treatment system of Dak La EZ.
For example, the wastewater treatment system invested in 2021, with an investment capital of 20.4 billion VND and a scale of 500m3/day and night. However, only 1/7 of enterprises use this facility. Since the amount of wastewater is very small and not enough to charge, the management unit does not receive any revenue from wastewater treatment. Currently, if the wastewater treatment system operates monthly, the management board incurs operating costs ranging from 17-22 million VND.
Regarding the fact that Kon Plong EZ has been invested in properly but has not been put into operation, Mr. Le Duc Tin, Vice Chairman of the People’s Committee of Kon Plong district said: “The location of Kon Plong EZ is near Mang Den town, but very few people know about its existence. Except for a few roads that have been built for many years, the entire planned land of the EZ is still a forest. Currently, the district is adjusting the planning and will build it in a new location, in Mang Canh and Hieu communes.”
Clearing bottlenecks
In response to these shortcomings, the Inspection team of the Standing Committee of Kon Tum Provincial People’s Council proposed that the provincial People’s Committee direct relevant specialized agencies and units to regularly provide information and report the production and business activities of organizations, households, and individuals in the IZs, EZs, and EZs; direct relevant agencies to prepare sufficient dossiers so that immediately after the approval of the 2021-2030 Provincial Planning, the province can proceed with the necessary procedures to adjust and reduce the area of the Bo Y International Border Gate EZ; accelerate the proposal to the central government to supplement planning and conduct necessary procedures to establish and develop a medicinal material IZ in Dak To district.
Speaking with Tien Phong, Mr. Huynh Quoc Trung, Director of KT EZ said that currently the most difficult point for IZs, EZs, and EZs is attracting investment. Because there are no infrastructure investors in the province, the development of IZs, EZs, and EZs is slow, the infrastructure is not synchronized, which affects investment attraction.
“In addition, the capacity of enterprises, especially capital, finances, technology, and competitiveness, are also limited to some extent. Most enterprises are small and medium-sized. It is worth noting that compensation work, ground clearance encounters many difficulties leading to a lack of clean land to introduce to investors,” Trung said.
Trung added that after the approval of the 2021-2030 Provincial Planning and the vision to 2050 by the Prime Minister (on January 16, 2024), Kon Tum Province will focus on solving difficulties and speed up the progress of compensation work, ground clearance for the remaining land area at Sao Mai EZ.
Based on that, carry out public land fund and organize calls for reception and settlement of investment attraction procedures into IZs.
In a working session on the planning and development of IZs, EZs on the area, Mr. Duong Van Trang, Secretary of the Kon Tum Provincial Party Committee suggested that KT EZ coordinates with units and localities to advise the provincial People’s Committee on solutions to overcome existing difficulties and problems in the development of IZs, EZs in the area.
Secretary of the Kon Tum Provincial Party Committee proposed to bring Sao Mai EZ into effective operation soon; focus on investing in infrastructure of the Urban – Service Area of Sao Mai to quickly complete infrastructure, auction as soon as possible to have capital for subsequent investments; strengthen investment promotion in IZs, EZs, especially create favorable conditions in terms of legal aspects for enterprises to expand production and business.
At the same time, Mr. Duong Van Trang also requested that after the plan to concentrate the production and processing of medicinal materials IZ (in Dak To district) is approved by the Government, KT EZ quickly advises the provincial People’s Committee to implement.
Talking with Tien Phong, Mr. Huynh Quoc Trung, Director of the Management Board of Kon Tum Economic Zone (KT EZ), confirmed that the most difficult point currently for IZs, EZs, and EZs is attracting investment. Because there are no infrastructure investors in the province, the development of IZs, EZs, and EZs is slow, the infrastructure is not synchronized, which affects investment attraction.
