In the Son La provincial planning for 2021-2030, with a vision to 2050 recently approved by the Prime Minister, the development plans for industrial zones, including Mai Son Industrial Park, are clearly outlined. Developing Mai Son Industrial Park towards sustainability will maximize its advantages and drive the province's growth.
Infrastructure in Mai Son Industrial Park is being invested in and fully developed
Operational Scale
Mai Son Industrial Park covers an area of 150 hectares, with phase I spanning 63.7 hectares and phase II covering 86.3 hectares. After 8 years of operation, the Provincial Industrial Parks Management Board has issued investment registration certificates to 11 investors, with a total area of 35 hectares and registered capital of approximately 1,024 billion VND. Among these, three projects are currently operational: BHL Son La Agricultural Product Processing Plant, Petrolimex Gas Filling Station, and Thanh Nhung Forestry Product Processing Plant.
The three operational projects employ 181 local workers from the communes of Muong Bang and Muong Bon in Mai Son district, with an average monthly income of 6 million VND per person. Additionally, these projects contribute to increasing the value of agricultural and forestry products for farmers in raw material areas, indirectly creating jobs in construction, transportation, and service commerce, thereby promoting socio-economic development.
Despite the past three years presenting significant challenges due to incomplete and inconsistent industrial park infrastructure and the impacts of the Covid-19 pandemic, investors have strived to stabilize operations. By December 31, 2023, the total revenue from manufacturing and business activities reached 2,497 billion VND, export value amounted to 77.01 million USD, and contributions to the state budget exceeded 22 billion VND.
Challenges to Overcome
Regarding the difficulties faced in Mai Son IP, businesses operating here express the need for provincial authorities, the Provincial Industrial Parks Management Board, and relevant agencies to focus on completing the industrial park's infrastructure. Progress in site clearance (phase I) is hindered by issues related to land and capital, resulting in incomplete and inconsistent infrastructure, which affects product transportation and investment attraction results.
Mr. Bui Van Man, Head of the Provincial Industrial Parks Management Board, stated: "Currently, the funding required to resolve site clearance issues for the Mai Son IP investment project is about 84 billion VND. This includes adjustments approved in 2017 and 2020 amounting to 27 billion VND, and a difference of 57.5 billion VND due to changes in compensation and support policies since 2018. We plan to mobilize 36.8 billion VND from secondary investors in advance, pending approval from the competent authorities. The remaining 20.7 billion VND is not yet balanced in the medium-term public investment plan for 2021-2025 and thus needs to be implemented post-2025."
Another reason is due to planning adjustments and changing input data, necessitating the re-preparation of a pre-feasibility study report for phase II of the Mai Son IP infrastructure project, which must be reviewed and approved by local authorities before being submitted to the Ministry of Planning and Investment for further assessment.
Mr. Dam Van Thanh, Director of Thanh Nhung Co., Ltd., which operates a forestry product processing plant in the IP, shared: "Apart from the general difficulty of incomplete infrastructure, the Thanh Nhung Forestry Product Processing Plant also faces challenges in transporting raw materials because the road leading to Mai Son IP is degraded and rugged, located far from National Highway 6, making partners hesitant about transporting products, thus limiting partnership expansion."
Additionally, BHL Son La Agricultural Product Processing Plant plans to upgrade its technology line and wastewater treatment system in 2024 but faces issues in determining the cost or price of clean and raw water consumption. The responsibility for setting and approving the wastewater treatment service prices at Mai Son IP is not yet consistent among relevant agencies.
Key Tasks and Solutions
The total leasable land area in Mai Son IP is currently about 28.51 hectares. Therefore, the province prioritizes attracting projects that can leverage the province's potential and strengths and deliver high socio-economic efficiency, especially in agricultural product processing and fruit preservation. These include projects such as the Feed and Agricultural Product Processing Complex by Mavin Mai Son Co., Ltd., the Agricultural Product Processing Warehouse by SM Group, and the Fruit Drying Plant by Minh Tien Coffee Import-Export Co., Ltd. These enterprises plan to invest over 700 billion VND, creating jobs for more than 580 local workers.
To expedite project implementation, Mai Son IP aims to complete phase I infrastructure by 2025, filling 100% of the industrial land in phase I, and prepare for phase II infrastructure investment.
The Provincial Industrial Parks Management Board is proposing that the Provincial People's Committee direct relevant departments and agencies to support state management in the IPs, streamline administrative procedures, especially those related to project proposals. Additionally, the Department of Planning and Investment is requested to prioritize additional public investment funds to complete the phase I infrastructure project in Mai Son IP in 2024, including covering the shortfall in total investment and the increase due to changes in site clearance policies.
Mr. Bui Van Man added: "We continue to urge investors to complete project procedures approved by the province; guide investors on project procedures to ensure immediate implementation after investment approval, aiming to fill the industrial land area. We regularly monitor and address arising issues in investment activities within the IP; coordinate with relevant departments, agencies, and localities to guide and resolve difficulties for investors. We plan and implement inspection and specialized audit programs to avoid overlap and facilitate investment activities for investors. Most importantly, we will complete the pre-feasibility study report for phase II of the Mai Son IP infrastructure project, submit it for local authority review and approval before presenting it to the Ministry of Planning and Investment and the Prime Minister for investment policy approval as a basis for post-2025 implementation."
During a field trip to Mai Son IP, after listening to the businesses' difficulties, Deputy Secretary of the Provincial Party Committee, Mr. Lo Minh Hung, requested that the Provincial People's Committee strictly follow the conclusions of the Provincial Standing Committee and Standing Party Committee regarding Mai Son IP. Focus on resolving issues related to land recovery and site clearance; direct relevant departments and agencies to complete state management and improve the investment environment for businesses in Mai Son IP; balance and allocate funds to complete infrastructure. For businesses, continue to strive for effective production and business, ensuring employment and living conditions for workers; aim towards green and safe production.
Flexibility in mechanisms and policies, proactive involvement from all levels and sectors, coordinated implementation of solutions, complete IP infrastructure investment; create favorable conditions for businesses to quickly deploy projects in Mai Son IP, contributing to solving local labor issues and driving the socio-economic development of the province.
*Source: Son La Newspaper (Original article link: Phát triển Khu công nghiệp Mai Sơn theo hướng bền vững (baosonla.org.vn))