Approval of the Investment Project for Hiệp Thạnh Industrial Zone
Last week, Deputy Prime Minister Lê Minh Khái signed Decision 214/QD-TTg on March 1, 2024, approving the investment project for the construction and operation of infrastructure of Hiệp Thạnh Industrial Zone, phase 1 in Tây Ninh province.
The investment project is undertaken by Vietnam Rubber Industry Group – JSC. The project covers an area of 495.17ha. The total investment capital is 2,350 billion VND, of which the investor’s contribution is 352.5 billion VND.
The project will operate for 50 years from the date of investment approval, which is March 1, 2024.
The Prime Minister has instructed Tây Ninh Provincial People’s Committee to direct the Management Board of the Provincial Economic Zone to coordinate with relevant agencies to guide the investor in phased investment according to the industrial zone land targets in the national land use plan for Tây Ninh province until 2025, as allocated by the Prime Minister’s Decision No. 326/QD-TTg and subsequent adjustments (if any). This ensures efficient land use and attracts investment into Hiệp Thạnh Industrial Zone, with subsequent phases implemented after the previous phase’s investment is completed on schedule, meeting the occupancy rate as regulated, and having the ability to attract investment for the next phase.
The State Capital Management Committee in Enterprises is responsible for the Vietnam Rubber Industry Group’s use and mobilization of capital for investment in the project, ensuring investment effectiveness, preservation, and development of state capital during the project’s investment process.
Tây Ninh Provincial People’s Committee will inspect and determine if the investor meets the conditions for land lease by the state at the time of land lease, ensuring the conditions for the state to permit the change in land use purpose to implement the project in accordance with the land law regulations.
The construction organization will implement the land recovery and land use change plan in the sequence, procedures, and regulations of the land law. They will invest in constructing residential houses, service facilities, and public utilities for workers in the industrial zone. They will also support employment and vocational training for workers who lose their jobs due to rubber planting.
Prior to this, in Tây Ninh province, during the 8th session of the 10th term People’s Council of Ho Chi Minh City, the People’s Committee of Ho Chi Minh City submitted to the Council the budgetary needs and funding balance capacity for the investment project of constructing the Ho Chi Minh City – Moc Bai Expressway, phase 1.
According to the proposal of the People’s Committee of Ho Chi Minh City, phase 1 of the Ho Chi Minh City – Moc Bai Expressway project requires approximately 16,729 billion VND in funding. The project’s funding is mobilized through the public-private partnership (BOT) contract. The investor will recover the investment through toll collection according to the BOT contract, while the State will support compensation costs and land clearance from the budgets of Ho Chi Minh City and Tây Ninh province. The Ho Chi Minh City budget is expected to contribute 5,936 billion VND. The expected payback period is 18 years and 1 month.
The Ho Chi Minh City – Moc Bai Expressway project has a total length of about 50km, of which the section passing through Ho Chi Minh City is about 23.7km, and the section passing through Tây Ninh province is about 26.3km. The project starts from the belt road 3 in Củ Chi district and ends at the parallel line with the existing national highway 22, connecting to national highway 22.
The Ho Chi Minh City – Moc Bai Expressway project will be divided into 3 component projects. Among them, component project 1 will implement the construction of the Ho Chi Minh City – Moc Bai Expressway under the BOT contract, with a total investment of 9,296 billion VND.
Component project 2 will compensate and support resettlement for the section passing through Ho Chi Minh City, with a total budget of 5,901 billion VND, led by the Ho Chi Minh City People’s Committee.
Component project 3 will carry out compensation, support and resettlement on the territory of Tây Ninh province, with a total budget of 1,532 billion VND, led by the Tây Ninh Provincial People’s Committee.
The Ho Chi Minh City – Moc Bai Expressway is an important infrastructure project eagerly awaited for investment and construction to promote trade between Ho Chi Minh City and Tây Ninh, which is the gateway to Moc Bai international border gate.
