DISCUSSION At the Conference of the Management Boards of Industrial Zones and Economic Zones in the Northern provinces and cities - August 2022 “Summing up the process of more than 20 years of construction and development of Bac Ninh industrial zones”
09:38 29/08/2022
In 1998, Bac Ninh Industrial Zones Authority was established; In 2000, Tien Son Industrial Park - the first one of Bac Ninh province was started construction. After 24 years of construction and development, up to now, Bac Ninh has been approved by the Prime Minister with 16 industrial parks with a total area of more than 6,300 hectares and 24 infrastructure projects. Currently, 10 industrial zones have been put into operation; 1,760 domestic and foreign investment projects have been granted investment registration certificates with a total registered investment capital of more than 23 billion USD, of which nearly 1,200 projects are under operation. For many years, the Bac Ninh Industrial Zones has always been in the top of the Management Boards in the country in terms of investment attraction results as well as the value created from the operation of industrial parks. Up to now, the industrial zones are growing stronger and stronger. The organizational structure of the Bac Ninh Industrial Zones has also fought matured and completed. The IZA always strives to successfully complete assigned political tasks, making an important contribution to the economic restructuring of the province in the direction of increasing the proportion of industry and services, reducing the proportion of agriculture, strives to become a city directly under the Central Government.

Particularly in 2021: Industrial production value reached 1,259,210 billion dong; Export value reached 38.5 billion USD. In the first 6 months of 2022, the export value has reached $21.3 billion (equivalent to 131% of the value of the same period in 2021), the whole industrial zone's export outlook in 2022 will reach over $40 billion. Enterprises in industrial zones are creating jobs for more than 320,000 workers. In the first 6 months of 2022, budget revenue and payment reached 6,400 billion dong, expected to reach over 13,000 billion dong in 2022.

Through the process of operation according to the provisions of Decree No .82/2018/ND-CP and now Decree No. 135/2022/ND-CP dated May 28, 2022 of the Government on management of industrial parks and zones economy; The  Bac Ninh Industrial Zones Authority realizes that there are a number of difficulties and obstacles as follows:

1. Regarding decentralization and authorization: Currently, in addition to the investment sector that is decentralized according to regulations, for other fields such as labor, environment,..., the Bac Ninh IZA needs authorization from the Ministry of central branches, Provincial People's Committee and specialized provincial departments. It leads to difficulties in the operation process in case of not authorized or delayed authorization.

For example:

(a) In accordance with the Government's Decree on management of industrial parks and economic zones; The Bac Ninh Industrial Zones Authority must be assigned tasks and authorization by the Provincial People's Committee in such areas as: resource management (granting and adjusting land use right certificates for enterprises, granting licenses to exploit underground water, surface water… ); Organizing the appraisal and approval of EIA reports for projects falling under the decision-making authority of the Provincial People's Committees in industrial zones and economic zones; Granting Environmental Licences. However, up to now, the Bac Ninh IZA has not been authorized to perform the above tasks.

(b) The Bac Ninh IZA has not been authorized to issue certificates of origin for goods exported in IZs on the basis of authorization of the Ministry of Industry and Trade.

2. Laws, Decrees and sub-law guiding documents related to investment, planning, development and operation of industrial parks have many inconsistent points, have changed a lot in recent times, The change process is not synchronized, leading to many difficulties in application, confusion, and incorrect application.

For example: According to the provisions of Point c, Clause 3, Article 51 of the Law on Environmental Protection 2022, the Management Boards of industrial parks, export processing zones and high-tech zones of provinces and centrally run cities are responsible for: "Organize to inspect the environmental protection for establishments in concentrated production, business and service zones in accordance with law". However, there are no regulations on the allocation of funds to implement this content.

3. Specialized software of some ministries cannot be synchronously connected with local and government applications, leading to difficulties in the process of exploitation, use and operation management.

For example: Currently, the Bac Ninh IZA is applying and using 02 software at the same time at the section “one-door” of the Provincial Public Administration Center, including: investment software of the Ministry of Planning and Investment; software for online public services of the province, which is integrated and synchronized with the national online public service portal.

4. Some other problems such as:

- Due to the frequent changes in the construction law, so, it is difficult for enterprises to timely grasp the procedures and order of construction investment;

- Some enterprises are not highly aware of the role and importance of management of construction investment projects, labor safety, fire safety and environment; A lot of business owners are not often at the factory sites, so it’s also difficult to approach and work with people who are competent to handle related jobs of the business.

- Some businesses have not properly implemented the labor law when their foreign labors come to work in Vietnam such as: Entering to work without applying for a work permit, entering work for the wrong purpose of entry,... Some businesses are registered to establish in the form of Vietnamese enterprises with a very small registered capital. They rent factories in Bac Ninh industrial zones, and then transfer part or all of their shares/contributed capital for foreigners; But they fail to make an investment notice or register for an investment certificate in accordance with the Investment Law and other administrative procedures for the purpose of enjoying the policy of being exempted from a work permit (who is not subject to the Law on Investment). apply for a work permit). This is a phenomenon of circumvention of the law, evasion of responsibility,

- Over the years, the situation of enterprises going bankrupt and owners fleeing has left great consequences for workers and society. In many cases, employees are owed wages and have no money to cover their lives; unable to close the social insurance book when applying to work at another company. The settlement of workers' rights in these cases is still very difficult and entangled because there are still many legal and responsibility gaps.


Bac Ninh IZA

Translated by Nguyen Mai Huong Office of Bac Ninh IZA
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Văn bản, chính sách mới Tiếng Anh Hỗ trợ thông tin đất-xưởng Doanh nghiệp trong các KCN Bắc Ninh-Enterprises in Bac Ninh Industrial Parks Chứng chỉ Sở Xây dựng Tiếng Anh CERTIFICATE OF CAPACITY OF CONSTRUCTION CERTIFICATE OF ELIGIBILITY FOR LABOR SAFETY AND HYGIENE TRAINING ACTIVITIES
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