REPORT ON SUMARIZING 20 YEARS OF ESTABLISHMENT AND DEVELOPMENT OF BACNINH INDUSTRIAL PARKS
15:32 28/08/2018
Your Excellency Representatives of the Leaders of Ministries, Central Agencies, Leaders of Provincial Party Committee, People’s Council, People’s Committee of Bac Ninh Province, Distinguished guests, Ladies and gentlemen, Bac Ninh is a province in the Northern key economic region and in the Northern gateway of Hanoi. The province has many advantages in geographical position, land potential and people, favorable for socio-economic development in general and industrial development in particular. The Provincial Party Committee, People's Council, People’s Committee have identified one of the important solutions for socio-economic development, speeding up the process of industrialization and modernization of Bac Ninh province, that’s to focus on investment, construction and development of industrial parks of the province. On August 25th 1998, the Bacninh Industrial Zones Authority was established under the Prime Minister's Decision No. 152/1998/QD-TTg with the function to perform state management over concentrated industrial zones in the province, based on the Decree No. 36/1997/ND-CP of April 24th 1997, in 2008 complying with the Government's Decree No. 29/2008/ND-CP of March 14th 2008, on industrial zones, export processing zones and economic zones. Its specific functions and tasks are stipulated in the Decision No. 60/2008/QD-UBND dated May 9th 2008 by Bac Ninh Provincial People's Committee. At present, the Bacninh IZA has a total of 10 divisions and subordinate units with 93 cadres, civil servants and employees. The Bacninh IZA is also developing a project to consolidate its organizational structure and operation in accordance with Decree No.82/2018/ND-CP dated 22/5/2018 by the Government regulating the management of industrial zones and economic zones. .

In the past 20 years, with the timely support and guidance of the Government and other Ministries and Central Organizations; with close attention, leadership and direction of the Provincial Party Committee, People's Council and People's Committee, all cadres, civil servants and officials of Bacninh Industrial Zones Authority have brought into full play their responsibility and creativity in implementing their tasks and building the Bac Ninh Industrial Zones Authority into a strong collective. With many remarkable accomplishments, prides itself on the following aspects:

1. The management of construction and planning in industrial zones shall be implemented in strict accordance with the order and regulations and meet the requirements of investors and the socio-economic development orientation of the province.

In December 2000, Tien Son Industrial Zone - the first concentrated industrial zone of the province was started to operate. In order to improve the efficiency of land use in industrial zones, the Bacninh Industrial Zones Authority has advised the Provincial People's Committee to elaborate the project "Adjusting the development planning of industrial zones in Bac Ninh province to 2015 with orientation to 2020" which was approved by the Prime Minister in Document No.1511/TTg-KTN dated 20/8/2014. Accordingly, Bac Ninh now has 16 industrial zones that are approved by the Prime Minister, supplemented with a total planning area of ​​6,397.68 hectares. There are 11 IPs granted with investment certificates and establishment decisions (including 14 industrial parks infrastructure projects). 10 industrial zones have been put into operation (3,681.94 hectare of industrial zones has been in use, 2,609.4 hectares of industrial land is leased). The occupancy rate on the planned land area is 63.61%, on the recovered land area is 87.96%. Registered infrastructure investment capital now reaches US$ 2,811.08 million (FDI projects with registered capital of US$ 2,738.4 million, domestic projects with registered capital of US$ 72.65 million).

The order of construction in the industrial zones has become more and more routine. The planning and construction of the Bac Ninh IZs in a rational manner combined with the management of construction in accordance with the detailed planning in a way that contributed to the success of attracting investment in industrial zones. The establishment of a model of industrial park and urban areas has contributed to the formation of new urban areas in association with the development of industrial clusters and craft villages and the creation of new rural areas. Creating jobs, transfering labor restructure from agriculture to industry and services. To synchronously develop technical infrastructure of the industrial zone with social infrastructure (electricity system, ware providing system, communication, workers' houses, cultural institutions, services such as bank insurance, etc.), in order to ensure the life of workers and stabilize social security. Contributing to the creation and distribution of economic space, creating harmonious development among regions in the province, is the basis for Bac Ninh to integrate and sustainably develop.

2. Industrial zones have attracted large investment capital, especially foreign direct investment. That is an important premise for Bac Ninh to maintain its growth rate and strive to become a centrally-controlled city in the year 2022

In the early years of building the industrial zones, red carpet were spread to attract investment. Major number of projects were small projects, domestic projects with low capital scale, focusing mainly on processing agricultural products, consumer goods, high-grade construction materials; Only two Canon projects accounted for 14% of total investment in Bac Ninh IPs (US$ 130 million/US$ 896 million). At that stage the investment rate was only 1-2 million US$/ha and about 3 million US$ /project.

Implementing the instructions of the Provincial People's Committee and other Ministries and Central Branches, Bacninh Industrial Zones Authority has actively advised the Provincial People's Committee to carry out well the investment promotion and attract many projects of big corporations with famous brands from 33 countries and territories in the world to invest in Bac Ninh IPs. By the end of July 2018, Bac Ninh IZs have attracted 1,278 investment projects with total registered capital of over US$17.43 billion, of which 848 FDI projects with total registered investment capital US$15.4 billion; 430 domestic projects with total registered capital of 2.03 billion US$. All the projects use new machinery and equipments, advanced production technology, clean production, and no environmental issues. The investment in machinery, equipments and technology (including technology transfer) of FDI projects in this period accounted for over 60% of total registered investment capital of projects. This is an important factor contributing to the increase of technological value in the value of products, minimizing factors affecting the environment, enhancing the competitiveness of products, thus enhancing the industrial production value, export value of Bac Ninh Industrial Zones.

Results of investment attraction in industrial zones in the past 20 years affirm the open, modern investment environment of the province; and then building up the image of each industrial zone, pulling the chain of other satellite investors, creating spillover power, forming specialized industrial zones and supporting industries; Bac Ninh has become one of the leading provinces in attracting investment, especially foreign direct investment (in 2017, Bac Ninh ranked the second in attracting FDI). This is an important premise for the province to maintain its growth rate, create a breakthrough in economic development, implement social security policies in the area, strive to become a city directed to a central-controlled city in 2022.

3. The activities of the IZ enterprises have developed strongly, contributing significantly to the economic growth of the province

 The Bac Ninh IZs currently have 887 projects in operation, creating large industrial production value (accounting for over 70% of the province's industrial production value); the export value always reaches a high and stable growth rate (over 90% of the province's export value). In 2017, the industrial production value of IP enterprises (excluding DTH companies) reached 664,674 billion VND; export volume reached $28.4 billion; import volume of $23.5 billion; Government budget contribution reached VND 8,700 billion. In the first 6 months of 2018, industrial production value reached 500,000 billion VND; Export volume reached USD19 billion; Import volume of US$ 11 billion; Government budget contribution reached 6,000 billion. The development of IZs is a major factor contributing to the province's economic structure transition; to contribute to promoting the expansion of international economic relations with other countries in the region and in the world, bringing the economy of the province to integrate into the international economy.

If the number of employees working at the enterprises in the IZs after 15 years in the beginning of building and developing was 144,740 people, in just 5 years (from 2013 to now), this number has nearly doubled, to 282,000 employees; of which 65% are female; local labor accounted for 26%; foreign workers are about 1.42% of total labor force. The average income of labors in indirect works is 6.8 million VND/person/month. The average income of laborers is 5.7 million VND/person/month.

4. Bac Ninh Industrial Zones Authority always goes along with the enterprises and well performs the state management

- Regularly review the implementation of the projects and catch up the situation of production and business activities of investors/enterprises, promptly support, remove difficulties and problems of industrial enterprises, specially issues related to power supply, water supply, land lease, investment incentives, etc. By the end of July 2018, the Bacninh IZA had reviewed, terminated the investment project and recovered the invesment certificates of 194 projects with total registered capital of 831.7 million USD.

- Advise the Provincial People's Committee to sign the Memorandum of Authorization for the Bacninh IZA to carry out some tasks of state management of labor in industrial zones in the province; coordinate with the Provincial Department of Labor, War Invalids and Social Affairs to sign the Regulation on the Coordination of the state management of labor in the industrial zones. Guide enterprises to complete procedures in accordance with the Law on Labor. Regularly organize propaganda sessions on labor law policies. Cooperate with Trade Union of Bac Ninh IPs to develop grassroots trade unions of IP enterprises, supervise the implementation of labor agreements between employers and employees; to assist enterprises in settling disputes arising in the course of employment. Trade union organization which is a bridge between workers and business owners is strongly thriving in industrial zones. The original number consisted of 05 grassroots trade unions with 1,725 ​​union members. At present, 95% of enterprises operating in stable production are qualified to establish trade unions. So far, there are totally 483 grassroots trade unions in the industrial zones with 113,991 union members. The union has become a reliable supporter of workers and business owners, caring for their lives, protecting their legitimate rights and interests, contributing to the make harmonious, progressive and stable labor relationship in industrial zones.

- The Bacninh IZA has developed and implemented the Coordination Regulation on Environmental Management and Protection in IZs with the Department of Natural Resources and Environment, the Provincial Public Security, and the People's Committee of districts, cities and towns. Carry out comprehensive environmental monitoring for Bac Ninh Industrial Zones and IP enterprises; guide, appraise and coordinate to implement the appraisal of EIA reports of IP enterprises. Collaborate with other relevant departments and agencies in the province and with the IZ infrastructure development companies to disseminate environmental regulations in the IZ and solve problems related to wastewater discharge and treatment of IP enterprises. Lead and participate in environmental inspection and supervision in Bac Ninh IPs. Currently, 7 of 10 active industrial parks have completed the construction of water supply plants. 9/10 industrial zones have concentrated wastewater treatment system; one IP is completing dossiers and procedures to start construction. There are 8 industrial zones with centralized wastewater treatment system installed with automatic monitoring stations.

- Together with the formulation and implementation of the annual plan on inspection and examination of enterprises, the Bacninh IZA shall perform well the reception of citizens, the settlement of letters and petitions of enterprises and laborers in the industrial zone. To well propagate and popularize anti-corruption law along with thrift practice and waste against. To clarify the administrative procedures and processes, promote the operation of the one-stop section. The People's Inspection Board regularly supervises and inspects to ensure early detection of negative phenomena and corruption so as to take timely preventive measures. Develop coordination regulations with many procincial departments to well manage and coordinate with relevant agencies to deal with complaints and denunciations related to IPs.

- Bacninh Industrial Zones Authority has cooperated with functional agencies such as Provincial Public Security (signing and implementing the Coordination Regulation in 2002), with district and town Public Security Offices, IP Public Security Stations, with the industrial park infrastructure companies to ensure good security and order in the industrial zones, not to cause serious cases. At the same time, to regularly guide industrial enterprises to strictly comply with the law on fire prevention. Coordinate with functional agencies to inspect, guide and urge enterprises to strictly implement fire prevention and fighting according to regulations.

5. Some other contents

- Bac Ninh Industrial Zones Authority has instructed its subordinate business units to efficiently implement the service activities inside and outside the IZ; promote the implementation of administrative reform, science and technology application in management and administration; To carry out scientific projects related to the operation of enterprises in Bac Ninh Industrial Park and subjects of high application in the operation of agencies and units.

- Strictly comply with the current law provisions in the fields of operation; effectively organize the annual emulation movements; all the officials and staffs of Bacninh IZA are actively studying the Party's directives, resolutions and conclusions, studying the thoughts, morals and styles of President Ho Chi Minh, seriously implementing guidelines, policies of the Party, laws of the State.

The process of establishement and development of Bac Ninh industrial zones has brought practical effects in promoting economic restructure of the province along the direction of sustainable development. Besides, there are still some difficulties and limitations to be overcome in the coming time such as:

Investment attraction in general and FDI in particular are concentrated in a number of developed industrial zones; newly formed IZs have not attracted much or have not attracted investment leading to uneven development of industrial zones and localities which have IPs. Investment promotion channels are not diversified; economic linkages remain limited, FDI enterprises have not really leveraged the development of domestic enterprises, especially local enterprises. Law enforcement is not synchronous, overlapping leading to difficulties in performing tasks; the sanction on the reporting regime of IP enterprises is not strong enough, making it difficult to improve the effectiveness of state management of IP enterprises. The implementation of the Coordination Regulation on state management of IZs according to the Decision of the People's Committee is still limited, leading to the situation that the Bacninh IZA is difficult to grasp and monitor the activities of the IZ enterprises in some areas. Service activities of the subordinate units are still difficult as market share is divided by many service providers; ...

Ladies and gentlement,

In order to further promote the sustainable development of industrial zones, contributing to speed up the process of industrialization, modernization and economic restructure transition of the province, bringing Bac Ninh to become a centrally-controlled city in 2022 Bacninh Industrial Zones Authority focuses on implementing and completing the following main tasks and solutions:

1. To improve the organizational structure and operation of the agency as stipulated in Decree No. 82/2018/ND-CP dated 22/5/2018 by the Government. To well perform the work of cadres, finance, salaries, emulation and commendation work. To attach importance to the work of training and fostering to raise professional qualifications and so forth for the contingent of cadres, public employees and officials.

2. To promote the administrative reform, especially the reform of administrative procedures; create a favorable business environment. Maintain effective operation of the one-stop section at the Provincial Public Administration Center. Maintaining Quality Management System ISO TCVN 9001: 2008 to upgrade to ISO 9001: 2015. Strengthening the application of information technology in the performance of tasks. To closely coordinate with the functional agencies in performing the state management of industrial parks.

3. To strengthen the investment promotion in industrial zones. To create a coordinated, close cooperation among branches, localities and take the initiative in carrying out the investment promotion work. Continue to renovate the content, diversify the form and identify key areas to carry out investment promotion.

4. To direct the infrastructure investment and development companies of the industrial zones to speed up the investment and construction of infrastructure in the industrial zones. To focus on planning and construction management. Regularly reviewing and guiding the IZ enterprises to strictly comply with regulations on planning and construction.

5. To well grasp the situation and assist in solving difficulties and problems of IZs in the process of production and business activities in order to complete the annual targets, contributing to complete the objectives of the Party Congress at all levels. To supervise the projects after the investment license and resolutely terminate the operation of the project and revoke the investment certificate in case of necessity.

6. To strengthen the environmental management in industrial zones; to direct the synchronous implementation of investment and construction of waste water treatment stations and industrial waste treatment works; establishment of environmental monitoring system. Strengthening the supervision, require enterprises to seriously implement the regulations on environmental protection in the industrial zones. To strive for 100% of the industrial parks operating with concentrated waste water treatment systems up to environmental standards.

7. To develop and implement the inspection plan for IP enterprises, avoiding overlapping and ensuring its effectiveness. To participate in the inspection and examination delegations of the central and provincial ministries.

8. To well perform the state management of labor. Coordinating to develop union members and set up grassroots trade unions in IP enterprises. To ensure the legitimate rights and interests of workers in industrial zones.

9. To actively cooperate in ensuring social order and security, fire prevention and fighting in industrial zones. Participating in building a model of industrial park security and security model, advanced model of industrial park to ensure fire safety in the province.

10. To renovate the mode of organizing the implementation so as to raise the quality and efficiency of emulation movements at the agencies and in the industrial parks. To contribute to the excellent completion of the assigned political tasks, improve the quality of activities of agencies and units, and raise the efficiency of production and business activities of the IZ enterprises. At the same time, successfully performing the contents of the emulation agreements signed between Bacninh IZA and other member units.

11. To well carry out the task of educating political ideology, raise the professional qualifications and train the morality and ethics of officials and staff in Bacninh IZA. To promote the study and follow the ideals, ethics and style of President Ho Chi Minh associated with the implementation of emulation movements. To identify, foster and multiply the typical, advanced collectives and individuals in Bacninh IZA and IP enterprises to encourage collectives and individuals to actively emulate and work.

12. To direct the subodinate non-productive units to provide a wide range of services within and outside the IZ. To maintain good state management and other tasks in order to build up a clean and strong party organization, strong government and mass organizations, and industrial zones with sustainable development. To improve the material and spiritual life of cadres, civil servants and officials.

Ladies and gentlement,

Over 20 years since its foundation, the organizational structure of Bac Ninh Industrial Zones Authority has been gradually improved and operated, and staff has grown up. During its operation, Bac Ninh Industrial Zones Authority has been awarded the Certificate of Merit by the Prime Minister, continuously awarded the Emulation Flag, the Certificate of Merit by the Minister of Planning and Investment and the Chairman of Provincial People's Committee. In particular, the Bacninh IZA was honored to be awarded the First, Second and Third Labor Medals by the President of the Socialist Republic of Vietnam. At the same time, many subordinate units and many individuals of agencies are recognized, commended and rewarded by all levels and branches. In addition to professional achievements, activities in the fields of the Party, mass organizations are also closely concerned. The Party Committee consists of 7 sub-branches with 69 members. For many years, the Party has been clean and strong. Trade Union, Youth Union, Veterans Association always won the title of excellent collective.

Ladies and gentlement,

Bac Ninh Industrial Zones Authority would like to express sincere thanks and look forward to receiving timely and prompt attention from the Government, Ministries, Central Committee, Provincial People's Committee, People's Committee, People’s Council of Bac Ninh Province; the close coordination of departments, localities, agencies and units in the province; the support and cooperation of the community of investors and enterprises. At the same time, in the coming years, Bac Ninh Industrial Zones Authority will always accompany the investors and enterprises, strive to overcome difficulties, implement and well complete the assigned tasks, and promote the achievements in the past 20 years.

Thank you very much./.

Nguyen Duc Cao, Deputy Director of the Board of Management of Bac Ninh Industrial Zones
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