Dong Nai wants to turn Bien Hoa 1 IP into a smart urban area.

The province has submitted a document to the government proposing the removal of Bien Hoa 1 industrial park (IP) from the national IP planning, according to a report by Dong Nai Newspaper.

Removing it from the planning would be the first step to changing the IP's function.

According to the province’s plans, after companies relocate from the IP, the province will be able to call for new investors to develop a smart complex of urban residences, shopping, and provincial administration.

The plan to change the land use purpose of Bien Hoa 1 IP has been delayed for 10 years now because parties failed to negotiate a roadmap for compensation. The initial plan, under which the province was to shut down the IP by 2020, has failed after complications in administrative procedures. The province estimated that it may take VND15 trillion ($652.17 million) to switch the function of the IP.

Bien Hoa 1 IP was established in 1963. At present, 82 enterprises are operating in the IP, 21 of whom will have their land rental license expire by 2051 and five whose licence will be over by 2021. Besides, 14 enterprises stopped operations and are leasing out their land areas.

Dong Nai is home to 1,804 foreign-invested projects worth nearly $33 billion from 45 countries and territories, with the Republic of Korea, Taiwan (China), and Japan ranking as the top investors. The occupancy rate at local industrial zones has reached 81 per cent, with only 1,300 hectares of space remaining available for lease.

By Ha Vy/Vietnam Investment Review