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Tony Milton MRICS

BSc (Hons) Est Man
MRICS
APREA (CREIF)

Industrial - Delta
Monday, 16 March 2009

CUU LONG (MEKONG) DELTA

 

 

The Cuu Long Delta's indus­trial sector needs at least $4.25 billion in investment capital to lift its annual growth rate to the de­sired level over the next 10 years, roughly 12.5 to 13.5%. This growth rate would raise the local industrial sector's contribu­tion to the delta's total GDP from 18.9% to over 22.7%. The delta's industrial sector makes a far smaller contribution to the region's GDP than that of other regions in the country, with 36.6% being the average indus­trial share. The delta has more than 75,000 industrial and handicraft establish­ments, but most are only crude, small scale operations. Industrial experts attribute the slow pace of local industrial development to inadequate investment in the delta provinces. Air and water pollution as well as a labour shortage are major problems encountering industrial parks and export processing zones in the delta. The delta's 13 provinces have a total of 113 IPs and EPZs but 68 of them are caus­ing environmental problems and discharg­ing 414,000 cubic metres of waste water per day, of which only 102,960 cu.m is treated at 21 IPs and EPZs. Furthermore, the rate of unskilled labourers in the Delta is 83% compared with the nation­wide rate of 74.6%. The Cuu Long (Mekong) Delta currently has some 85,000 industrial enterprises employing about 300,000 labourers.

 

Can Tho & Hau Giang

 

The Cuu Long Delta province of Can Tho has unveiled ambitious plans to become an industrialised province by 2020. The plan will see the province boost industrial, service and agricultural sectors by 2010 ending its reliance on agricultural production. The target was set by the provincial Party Committee’s plan for the period 2001 to 2010. The southern province of Can Tho is only 169km from HCMC. It has long been the leading industrial province in the Cuu Long Delta region and its industrial production has accounted for one-fifth of the entire regions. The province’s processing sector is strong though and 70% of its sugarcane, 60% of its seafood and 10% of its livestock is currently processed. However, obsolete engineering equipment is insufficient to meet the province’s rural and agricultural development. There are few local technicians and labourers and only 11.8% of its skilled labourers have been trained. Under the plan, by 2010 the value of its industrial production is expected to be $1.75 billion and industry and construction make up 37% of its economic structure. Priority will also be given to investment in high tech industries such as electronics and bio-technology and from now until 2010 the province will establish the high tech infrastructure it needs to industrialise. The province wants to see a machinery centre and an IT and electronic centre set up for the Cuu Long River Delta. The plan will see the development of the Tra Noc, Nam Hung Phu and Vi Thanh IPs and smaller scale industrial zones such as Cai Son, Hang Bang and Thot Not. From now to 2010 the province will upgrade infrastructure to make Cai Sau and Bung Binh ports able to receive ships with capacities of up to 30,000 DWT. Factories and enterprises here will be housed in specialised complexes for such industries as steel grinding, metal­work, engineering, shipbuilding, con­struction materials, transport and com­munication services, agricultural­ & sea products processing, glass and porcelain production, cosmetics, high ­technology and energy. In 2003 the People's Committee drastically slashed land lease cost and is even offering ‘rent-free’ land for several years in some of its industrial and handicraft zones in the latest move to attract more investment. Shipping construction, garment and auto companies have announced plans to build in Can Tho IPs, raising the park's occupancy rate to twice the national average. In 2003 the Vietnam Shipping Corp announced plans to build a shipbuilding yard in Hung Phu 1 industrial park (IP) and the Central Construction Corp has said it wants to build a cement plant in Hung Phu 2 1P and a concrete processing plant in Tra Noc 2 IP. The Transport & Engi­neering Corp also announced plans to set up a concentrated zone for autopart makers in Tra Noc 2 IP, and the Vietnam Textile and Garment Corp plans to construct sev­eral textile and garments plants in Hung Phu 2 IP. If all these projects are approved the occupancy rate at the province's operating IPs would rise to an average of 50%. Can Tho has 5 IPs covering 935 hectares about 40% of which are currently occupied according to CAIEPZs. Tra Noc 1, Tra Noc 2, Hung Phu 1 & Hung Phu 2 are operating but Vi Thanh park is still at the land plan­ning stage. The province’s IPs have attracted over 125 tenants including more than 25 foreign invested projects, worth about $100 million, and with a combined investment capital of over $385 million.

 

 

Tra Noc 1:- The 135 hectare is fully occupied after having leased 81 hectares to 7 projects worth $11.75 million in early 2005 that include 4 seafood processing factories and a workshop making pre-fabricated houses creating over 4,700 jobs.

 

 

Tra Noc 2:- The 165 hectare has leased 70% of its land and is anchored by the 2004 licencing of a UDS$84 million auto factory to the Hyundai Vina Motor Co JV that plans to build 17,500 light trucks and mini-vans per year. The factory covers an initial 15 hectares with talk of future expansion to 60 hectares. In 2004 the province allowed Saca (Saigon Construction and Building Material Association) to build a residential complex for IP workers on 140 hectares near the 2 IPs costing $37 million.

 

 

Hung Phu 1 & 2:- In 2004 the PM granted permission to build the Hung Phu 1 IP next to the Cai Cui Port covering 350 hectares including construction of a 3km embankment along the Can Tho river. Construction started on the Cai Cui Interna­tional Port in 2002 on 9 hectares of land with a design capacity of over 2 million tonnes of cargo per year. The US$32 million project includes a 350m long pier and a 10 km road linking Can Tho City with the port and IP. The Can Tho IP Development Co is seeking partners for infrastructure development at the 616 hectare Hung Phu 2 with total investment capital of US$100 million. The Viet Nam Textile Corporation (Vinatex) has announced plans to invest more than $64 million on a 100 hectare textile & garment com­plex and in 2004 Vien Dong Investment & Trade JS Co with the China National Overseas Engineering Corp negotiated to lease 80 hectares of Hung Phu 2 IP to build an oil refinery worth $950 million. In mid 2005, the Japanese-Thai-Vietnamese VTN Petro-Chemical JV started test-running a US$8 mil­lion 2,000 barrels per day crude oil refinery.

 

 

Tan Phu Thach Industrial Complex:- Located in Chau Thanh A District, Hau Giang provincial authorites decided in early 2005 to invest US$18 million in the 131 hectare industrial complex, with an aim of completion by 2009.

 

 

Future Projects : Can Tho City is seeking approval to build 4 more IPs to 2020 including Thot Not (1,000 hectares), O Mon (800 hectares), Song Hau (1,200 hectares) and Co Do (1,800 hectares).

 

 

Vinh Long

 

Situated in the heart of the Cuu Long (Mekong) Delta, with a population of more than 1 million in an area covering 147,519 hectares, the province adjoins Tien Giang, Can Tho, Dong Thap, Ben Tre and Tra Vinh provinces. Vinh Long is in the centre of the most abundant agricultural and aquatic produce region in Vietnam with ample supplies of fresh water, which is enriched annually by silt from the Tien and Hau rivers. Fertile soil and a temperate climate are suitable for many tropical fruits, vegetable and acquaculture creating huge potential for farm and marine product processing and export. The province has 3 IPs with over 40 tenants and is completing a feasibility study for Binh Minh and detailed planning of the 170 hectare Hoa Phu. In 2002 the PM stopped construction on infrastructure for the 73 hectare Bac My Thuan IP on the Co Chien river between the My Thuan Bridge and Truong An Tourism Resort and 7km from Vinh Long town so it could be converted to support tourism and trade operations.

 

Binh Minh:- Situated in Binh Minh District 30km southwest of Vinh Long and 2km from Can Tho the 162 hectare park is located on the left bank of the Hau River. Singapore's Lumeka International Cor­p which specialises in construction of public utilities and infrastructure has agreed to develop the infrastructure which will include a new wharf that can accommodate 10,000 DWT ships. Several member enterprises of the Singapore Sea Producers' Association have expressed interest in investing at the IP.

 

Co Chien:- Situated amongst Long Ho and Mang Thu Districts and Vinh Long town the park covers 118 hectares and is divided into 7 sub-zones lining Highway 31 to Ca Loc River. The park is designed for factories with highly polluted waste. The formation of this park was based on 54 state owned and private companies in building materials production with a huge fuel tank belonging to the General Department of Aviation that supplies fuel to the Mekong Delta. Over 15 investors have registered to lease land.

 

 

Tien Giang

 

My Tho:- Situated 3km west of My Tho City be­tween the Tien River and Provincial Road 864 and about  4km South of National Highway 1a, plans were announced in 2002 to expand the park by 15 hectares as the 79 hectare 1st & 2nd phases were leased. In 2003 local authorities opened a $1.2 million road linking the park with National Highway 1a and central Government agreed to provide $6 million in funding to develop the 3rd phase.

 

Trung An:- In 2004 the government approved the park with a 138 hectare 1st phase and a total area of 240 hectares.

 

 

Tan Huong:- Situated in Chan Thanh District 20km from My Tho City on National Highway 1a the 240 hectares park was approved in 2000 and includes a 40 hectare resettlement area.

 

 

Tra Vinh

Dinh An EZ - In mid-2009, the PM approved the establishment of the Dinh An Economic Zone covering an area of more than 39,000 hectares and covering 5 communes in Tra Cu District and 8 communes in Duyen Hai District. The zone, the second of its kind in the Mekong Delta, aims to develop agricultural production and fisheries in the local area.

 

Long Duc:- Established in 2001 the $15 million 120 hectare park is situated in Tra Vinh town. The $3.5 million 1st phase will be carried out to 2010 and the 2nd phase from 2011-2020. The park will focus on produce processing, wood products, garments, paper and other manufactured goods and has leased land to more than 11 projects worth over $10 million.

 

Soc Trang

 

 

Provincial authorities have plans 5 IPs specialising in seafood & agricultural processing, shipbuilding & repairing, and small scale industry, covering 351 hectares.

 

An Nghiep:- Situated in My Tu District, the $21 million park was approved by the PM at the end of 2004 and will cover a total of 257 hectares. The 139 hectare 1st phase is expected to be completed by 2008 and attract $160 million and create 16,800 jobs. More than 20 businesses have already registered to rent 108 hectares.

 

 

Tran De:- Construction on the $12 million park began in 2004. The IP will focus on factories processing fish and farm produce.

 

Kien Giang

 

 

From 2006 to 2010 provincial authorities plan to construct the Rach Vuoc & U Minh parks, both of which will be over 100 hectares.

 

 

Tac Cau:- In 2004 provincial authorities announced plans to build the 106 hectare park that will focus on construction materials, household furniture, food, mechanics, and ship building.

 

 

Vinh Hiep:- In 2004 provincial authorities announced plans to build the 92 hectare park in Rach Gia town that will focus on producing consumption goods, construction materials and machinery, and companies that process agricultural and aqua­cultural products. The authorities expected more than 10,000 labouring jobs to be created. To service the park, provincial authorities are building a 172,000 sqm apartment complex.

 

Muc Dao:- In 2002 provincial authorities ap­proved construction of the 70 hectare park in Ha Tien town near the My Duc border with Cambodia. The park will focus on ship building & repairing, and for­estry products processing.

 

 

Phan Thi:- At the end of 2008 the HCMC based Phan Thi JSC received approval for the USD$29.5 million park in Thuan Yen district, Ha Tien Town. The town's first IP will cover 140 hectares.

 

 

Dong Thap

 

The province borders Long An, Tien Giang, Vinh Long, An Giang and Can Tho provinces, and shares a 48km long border with Cambodia. The province covers an area of 3,238sq.km, and has a population of over 1.6 million. Dong Thap is well known as the country's rice generating province. The province has 2 towns and 9 districts; its main town is Cao Lanh, which is 171km from HCMC. The province has plentiful fresh water, minerals, forests, animal and vegetable resources. The provinces 3 IPs (Sa Dec, Tran Quoc Toan & Song Hau) are scheduled to be fully operational by 2006. In early 2005, provincial authorities decided to invest $7.6 million of the local budget to develop infrastructure in Sa Dec, Tran Quoc Toan and Song Hau, and invest more money in upgrading infrastructure in Can Lo, Truong Xuyen and An Binh A industrial clusters. By mid 2005, the province’s parks had attracted a total investment capital of over $50 million from 28 projects, 9 of which were operational, creating 3,500 jobs.

 

Sa Dec:- Situated 15km from the My Thuan Bridge and 145km from HCMC in Sa Dec town in the centre of the Cuu Long River Delta; adja­cent to Highway 80 and Provincial Road 848; and by the Tien River with a port for up to 5,000 DWT ships, SDIP benefits from good inland water trans­port connections. Since construction started on the 330 hectare park in 2001 (79 hectare 1st phase), over 25 enterprises have leased land for projects worth more than $50 million. Tenants include an animal feed processing factory; a mushroom cannery; and two shrimp & seafood-processing factories.

 

 

Tran Quoc Toan:- In 2001 the PM gave approval for the construction of the park in Cao Lanh town. Provincial authorities are seeking investors for the construction of the 150 hectare park situated in Cao Lanh town.

 

 

Ca Mau

 

 

In early 2008 the PM approved 3 new IPs which the local authorities hope will enhance the province's economic development. Moreover, the PM also added new zones to the list of IZs to be established by 2015 including Nam Dinh Vu (1,200 hectares); Nam Trang Cat (1,000 hectares); Thuy Nguyen (1,000 hectares); An Duong (800 hectares); Tien Thanh - Tien Lang (450 hectares); Gian Bien 2 - Vinh Bao (400 hectares), and Vinh Quang - Vinh Bao (350 hectares). The province's IZ occupancy ratio is expected to reach 60% by 2010. According to a Govern­ment programme for devel­oping IZs by 2015, the State aims to establish 115 new IZs covering a cumulative 26,443 hectares, while expanding existing IZs by over 5,000 hectares.

 

Central government is also building the USD$493 million Khanh An Gas-Electricity-Nitrogenous Fertiliser Industrial Complex on an area of 1,208 hectares to use the gas brought ashore from the off-shore oil & gas fields. The project remains in doubt though, as in early 2005, PetroVietnam proposed relocating the facility to Vung Tau. Meanwhile, the Civil Aviation Au­thority of Vietnam (CAAV) have up-graded Ca Mau’s airport so Vietnam Airlines are now able to operate commercial flights from HCMC.

 

Khanh An:- Situated near the power-fertilizer-gas complex in Khanh An Village in U Minh District, the 100 hectare IP forms part of a larger USD$49 million, 360 hectare New Urban Town. The park was approved by the PM in 2004 and will focus on seafood & farm produce processing, food & foodstuffs, consumer goods, mechanical items, construction materials and house a section dedicated to petroleum companies. Construction of basic infrastructure will be fully completed by 2008.

 

 

Hoa Trung: The 235 hectare IZ will accommodate both old and new seafood processing plants.

 

 

Nam Can: The 515 hectare IZ is projected to become a major shipbuilding area housing a shipyard capable of build­ing 30,000 tonne vessels and a seaport. The Viet Nam Shipbuilding Industry Group (Vinashin) is also planning to build a cement plant here.

 

 

Song Doc: The 250 hectare IZ will serve the needs of lo­cal fishermen by providing animal feed factories built with leftover aquatic prod­ucts, seafood processing plants and repair facilities for small ships.

 

 

An Giang

 

 

The province is situated 180km from HCMC; on the Mekong River so convenient for the regional land and river transport networks; has a population of over 2 million; a 90km border with Cambodia; and international ports at Vinh Xuong in Tan Chau District and Tinh Bien in Tinh Bien District. Local authorities hope that these advantages will help the province become a communication hub in the Greater Mekong Sub Region that comprises Vietnam, Cambodia, Laos & Thailand. The economic structure of the province has been changing in recent years with the agricultural sector shrinking from 54% of GDP in 1995 to around 40% now, while the serv­ice sector has grown from 35 to 47% over the same period.

 

 

Vam Cong:- Situated in Long Xuyen City, provincial authorities are seeking $10 million in funding for infrastructure development.

 

 

Binh Hoa:- Situated in Chau Thanh District in Lo Te T-junction area, connecting Provincial Road 941 to National Highway 91; 12km from Long Xuyen City; 41km from Chau Doc Municipality; 20km from My Thoi Port; and 67km from Tinh Bien Border Gate Economic Zone, provincial authorities are seeking $8 million in funding for infrastructure development. The total are of the IP will be 146 hectares but zoning plans indicated 73 hectares reserved for a brick production zone and a resettlement area. The park will focus on textiles & garments, leather & shoes, plastics, consumer goods, foodstuff, vegetable, fruit & livestock processing, and animal feed pro­duction.

 

 

Vinh My:- Situated next to National Highway 91 and the Hau River; on the outskirts of Chau Doc Municipality; 50km from Long Xuyen City; and 26km from Tinh Bien Border Gate Economic Zone, provincial authorities are seeking $5 million in funding for infrastructure development at the 66 hectare IP. The dock inside the park can accommodate vessels of 2,000 DWT and the park will focus on aqua-product, food & foodstuff processing; mechanical engineering, and consumer goods manufacturers.

 

 

Xuan To (aka Tinh Bien International Border Economic Zone IP):- In 2004 provincial authorities approved a plan to build a 57 hectare IP attached to the 9,255 hectare International Border Economic Zone in Tinh Bien District. The 1st phase construction will be completed in 2010. The park will focus on assembly, packing, agri-product processing, and storage facilities.

 

 

Binh Long:- Situated in Chau Phu District adjacent to National Highway 91 and the Hau River; 30km from Long Xuyen City; 23km from Chau Doc Municipality; and 49km from Tinh Bien Bor­der Gate Economic Zone, the 42 hectare IP will focus on agro-aqua & livestock process­ing. The IP plans to construct a 3 hectare river port able to accommodate vessels of 300 DWT at a cost of $2 million.

 

 

Bac Lieu

 

 

Tra Kha:- The 123 hectare $17 million (centrally funded) IP was approved in 2001 and is 4km from the center of Bac Lieu Municipality; adjacent to the Bac Lieu-Ca Mau Canal; and next to National Highway 1a. The park is focusing on frozen aqua-product processing, food & foodstuff processing; agricultural machin­ery manufacture & repair; furniture, interior deco­ration; electronics; textile-garments & plastics.

 

 

Ben Tre

 

 

Cai Mon Hi-Tech Agricultural Zone:- In 2004 provincial authorities announced plans to build the 800 hectare agricultural park in Cho Lach District that will include a wholesale market, a seedling processing zone, post-harvest technology sites, and tourism facilities. The zone is expected to be operating by 2007 with an average annual production value of over $3,000 per hectare.

 

 

Giao Long:- In 2005 the PM approved the construction of the $5 million 96 hectare $4.5 million park in Chau Thanh District for food processing and the production of animal feed, garments, electronics & handicrafts. The plans for the zone include 12 hectares for resettling the affected households.

 

Last Updated ( Friday, 08 May 2009 )
 
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