VIETNAM ACADEMY OF SOCIAL SCIENCES
GRADUATE ACADEMY OF SOCIAL SCIENCES

VU THI LA

“DEVELOPMENT MANAGEMENT OF INDUSTRIAL
PARKS IN HUNG YEN PROVINCE TOWARDS
SUSTAINABILITY”

Major : Economic Management
Code : 9340410

ECONOMICS DOCTORAL THESIS SUMMARY

HANOI - 2019


THE THESIS IS COMPLETED AT
GRADUATE ACADEMY OF SOCIAL SCIENCES

Scientific Advisors: 1. Associate Professor, PhD: Cu Chi Loi
2. Associate Professor, PhD: Vu Thanh Son

Opponency 1: Professor, PhD: Nguyen Quang Thai
Opponency 2: Associate Professor, PhD: Nguyen Duc Tuan
Opponency 3: Associate Professor, PhD: Phi Manh Hong

The thesis is protected at Doctoral Thesis Appraisal Council at
Graduate Academy of Social Sciences
At time, date ..... month ..... year 201


Hung Yen is the province who plays an important role in the socio-economic development of the
Northern key economic region. The province always has high industrial mannufacturing value as a result of the
industrial park develoment. Hung Yen province has implemented IPs planning and development in the area
which has already been approved by Prime Minister to be included into the Master Plan of the industrial park
development in Vietnam with orientation until the year 2020 (with total 13 IPs and total area of 3,685 ha). IPs
have created stable jobs for some 37,000 laborers. In addition to those achievements, industrial park
management in Hung Yen also shows many weaknesses and a shortage of factors for sustainable development
assurance. Industrial park development in Hung Yen has just focused on economic objectives, but not yet
comprehensively considered environmental and social aspects as shown below:
- The IPs construction and planning quality has not been good, has had no long-term visions and has not
taken the region connection factors as well as conditions, potentials and advantages of each region in Hung Yen
into considerations. This is also one of the reasons for the low occupancy rate of industrial parks.
- Compensation for land acquisition and infrastructure construction in industrial parks has not been
implemented well.
- Investment attraction into industrial parks is still slow, not yet compatible with potentials and
advantages of the industrial zone development.
- Issues such as human resource training, housing, culture, spirit, education and health care for
workers working in industrial parks has not been much interested.
- Environmental pollution, water pollution, air pollution and solid waste from industrial parks have
still occured and no effective solution has been taken yet.
- The current industrial development policy system of Vietnam in general and of Hung Yen in
particular still has many problesm, particularly policies on employment, land, environment and investment,
etc. Ineffectiveness management of the State agencies has resulted into the situation that some foreign
enterprises run away from industrial parks.
These are the very urgent issues with big impacts on the sustainable development of Hung Yen
which should be concluded and researched, and then improvements shall be proposed. Thus, the research
of solutions for industrial park management in Hung Yen Province towards the sustainable development is
- 1-



4. Methodology and research method of the thesis
4.1 Approach
- Systematic approach: Industrial park maangement consists of many different tasks such as
planning, investment attraction, and enterprise support in industrial parks, human resource training, and
housing for laborers, infrastructure construction and wastewater treatment in industrial zones. All these
issues will be recognized, analyzed and assessed by the author in a close relationship.
- The thesis approaches the research topic from the economic management perspective.
- Practical approach: The thesis applies the data showing the actual status of the sustainable
industrial park management in Hung Yen Province.
4.2 Research method
The research methodology means both qualitive and quantitive approaches, but mainly the qualitive one.
The research methodology is both qualitative and quantitative approaches, mainly qualitative.
- Qualitative research serves the purpose of systematization and selective interpretation of the
theoretical basis for Industrial Park Development Management in a Sustainable Way; Clarify the factors
affecting State management of the sustainable development of industrial parks and research international
and domestic experiences for the sustainable development of industrial parks, and learn lessons for IPs
development management in Hung Yen Province towards sustainability.
- Quantitative research aims to analyze the actual status of management of IPs development in Hung
Yen Province in a sustainable way, thereby clearl demonstrate successes, outstanding problems and causes
of the problems.
The applied research methods include the below:
- Desk research methods: The author collects and systemizes documents: Collect research works in
the form of reference books, articles and theses by domestic and foreign authors as the bases for research
- 2-


issues. Besides, the author also systematizes documents and policies on management of industrial parks,
especially the regulations with direct and indirect impacts on the sustainable development of industrial
parks. Analysis and comments on management policies of industrial parks in towards sustainability are
thereby given. The desk research methods include:


Theoretical frame of IPs
development management
towards sustainability

Expert methods
Documents
and data
collection

Stastical &
analytical
methods

Criteria on IPs
development management
towards sustainability

Expert methods

Actual status analysis of IPs development
management in Hung Yen towards sustainability

Proposed orientation and solutions for IPs development management in Hung Yen
towards sustainability

Figure 1.1: Sequences of reasearch and resolution of issues mentioned in the thesis
(Source: Proposed by the author)
- 3-


Chapter 3: Actual situation of industrial park development management in Hung Yen Province in a
sustainable way.
Chapter 4: Solutions for industrial park development managementin Hung Yen Province towards
sustainability.
Chapter 1
OVERVIEW OF RESEARCH SITUATION RELATED TO INDUSTRIAL PARK
DEVELOPMENT MANAGEMENT TOWARDS SUSTAINABILITY
1.1. Foreign research works
IP is one of the specific models of the special economic zone (EZ) in the world.
The book Economic zones in the giant and Asean published by the Unido National Office in
Vietnam in 2015 writes about competitiveness of economic zones. It gives out overviews of ASEAN's
economic zones and recommendations for construction and development of Economic Zones in
ASEAN nations.
The article Development of Eco-efficient industrial parks in China clarifies China's efforts in
coordination and promotion of ecological and low-carbon industrial parks. The work China's special
economic zones an national industrial park – Door openers to economic reform is about economic opening
policies, effectiveness of State industrial parks, organizational structure of industrial parks, and specific
characteristics of industrial parks in China and industrial parks developing key industries of China.
The works "The application of industrial ecology principles and planning guidelines for the
development of eco-industrial parks: an Australian case study", the clean production journal by B.H
Roberts Elsevier introduces a new point of view in the sustainable development of industrial parks
- 4-


towards development of ecological industrial parks with specific criteria and evidences in the
conditions of Australia.
The International Conference on "Ecological Industrial Parks" held in Hyderabad, India on July
6-8, 2009 attracted participation of over 80 delegates from nations such as Germany, Tunisia and India,
Indonesia, Morocco and Philippines, etc. The main purpose of the Conference is to facilitate
experience exchange in the field of the sustainable management of industrial parks and strengthen

construction for workers in industrial parks and export processing zones". These works have
systematized welfare issues for laborers in IPs and served as the important theoretical basis for the
author when analyzing one of the functions of industrial park management which is the sustainable
industrial park management in the social term.
The economic doctoral thesis by the author Phan Quoc Tuan (2012) "Supportive solution for
enterprises in industrial park development in Ho Chi Minh City until the year 2020" has pointed out the
theoretical aspects of supportive policies for enterprise development in IPs including supports from the
Government and supports from the Management Board of Industrial Parks.
Researches on support for enterprises in industrial parks have suggested many research ideas for
the PhD student in economic management of industrial parks. These studies concentrate on the
function of State management of industrial parks, paying much attention to mechanism and policies of
central and local industrial park management.
1.2.2 Research works on the sustainable development of industrial parks
The sustainable development of IPs is an urgent task after a hot development period of IPs
resulting into many environmental and social issues in the recent years.
- 5-


1.2.3 Research of ecological industrial parks
Construction and development of eco-industrial parks is a new direction in research and
development of IPs towards sustainability in Vietnam. Some typical authors in research of ecological
industrial parks are Nguyen Cao Lanh and Tran Thi My Dieu, etc.
Researches of eco-industrial park development have given out many useful recommendations
for the author in finding out new directions in IP management towards environmental sustainability in
a modern approach.
1.3 Basic theories for management of IPs development in towards sustainability
The thesis is carried out based on the following theories:
+ Theory of State management functions
+ Theory of industrial park development
+ Theory of the sustainable development

development managementin a sustainable way.
Analyze and make clear the existing status of industrial park development management Hung
Yen Province towards sustainability and then evaluate achievements, limitations and find out causes of
limitations in industrial park development management in Hung Yen towards sustainability.
Propose points of view, orientations and solutions for industrial park development management
in Hung Yen Province in a sustainable way.
Chapter 2
THEORETICAL AND PRACTICAL BASES FOR INDUSTRIAL PARK DEVELOPMENT
MANAGEMENT TOWARDS SUSTAINABILITY
2. Theoretical basis for industrial park development management towards sustainability
2.1.1 Some basic concepts
a. Industrial park concept
After studying the IP concepts in the world and in Vietnam, according to the author of the
thesis, the industrial park is a part of the national territory with defined geographical boundaries and an
appropriately built infrastructure for industrial production, is a concentration area of enterprises
specialized in manufacturing industrial goods and providing services for industrial production with
defined boundaries and without residents.
b. Development concept
According to the Vietnamese dictionary, "development" is understood as the process of
movement, progresstowards increase. As specified in the Literally Encyclopedic Dictionary of
Vietnam, "development is a philosophical category that indicates the nature of the transformations
taking place in the world. Development is an attribute of matter. Everything and phenomena of reality
do not exist in a different State from the time of appearance to the time of death ... the origin of
development is the unity and struggle between opposites. "
Development is not consistent with the concept of "movement" (alteration) in general, it is not a
mere transformation of quantity or cycle alteration that is repeated in the old substance but existence
and nonstop movement, changes in scale and quality towards increasing completion of things at higher
and higher levels.
c. Industrial park development concept
Industrial park development is an increasing process in terms of quantity, quality and system

- Industrial park development management is the organized operation by the State laws on the
development of industrial parks to make sure that the industrial park can promote its role in compliance
with the orientation of the State and ensure enterprises' objectives in the IP and socio-economic
development of the local and the nation. Industrial park development management includes 4 below
contents:
- Industrial park development planning including planning of location, scale and investment
attraction field.
- Industrial park infrastructure construction: There are two forms of investment industrial park
that is invested by the State or private (domestic or foreign). Each form of investment has its own
advantages and disadvantages which can affect the sustainable development of industrial parks to
which management shall pay attention.
- Business and production development includes creation of incentive mechanisms and policies
and investment promotion activities
- Evaluation, inspection and supervision.
f. Sustainable development concept
Sustainable development is understood as a development way which harmonizes three main
objectives of (1) high, stable & long-term economic growth, and reasonable and efficient use of
available resources, (2) social issue settlement towards progress and fairness, (3) environmental
protection towards ecological diversity maintenance and mitigation of negative impacts on the
environment.
g. Concept of IPs development towards sustainability
Industrial park development managementin towards sustainability is an organized impact in
compliance with the State laws on the quantity, quality and development of systems inside industrial
parks for the sustainable development objectives including the sustainable economic, social and
environmental development.
2.1.2 Role of IPs development management towards sustainability
- 8-


2.1.2.1 Role of IPs in socio-economic development Vai trò của KCN đối với phát triển kinh tế xã hội

effective legal institutions & corridors and enhance IP occupancy rate. IPs management boards should
maximize the active, flexible and creative role in implementation of investment promotion, attraction
& support activities. Frequently enhance the quality of services, infrastructures, and promote
connection to improve production and business efficiency of enterprises.
Technology transfer promotion: This is an important direction and work to make sure the
sustainable development of industrial parks, especially in the current period when the technology
transfer is meaningful for the technological level enhancement for the local and the nation and it will
spread impacts on enterprises in the IPs and outside the IPs.
2.1.3.2 Management of IPs development towards social sustainability
In order to manage industrial park development towards social sustainability, management
should carry out:
Policies on compensation and land acquisition: The policies on compensation and land
acquisition shall ensure benefit harmonization between the State and residents by price compensation
policies, resettlement policies and livelihood compensation for residents
Local labor use policies: Job & income creation for local laborers, especially the residents
whose land is acquired as IPs is the top task of the locality in addition to investment promotion and
attraction policies. Normally, when building industrial parks in a certain locality, there will be a large
part of local residents who have lost their farming land and have no jobs. Therefore, in order to avoid
the situation that local residents after a short time of land compensation are unemployed and have no
- 9-


income, the policies on development and employment of local laborers in the industrial parks are the
most urgent social requirement.
Policies on human resource training and development in the direction of labor demand approach
of industrial parks in accordance with scientific and technical changes
Ensure benefit harmonization between employees and employers: It is necessary to organize law
education and propaganda programs for laborers and enterprises parties can fulfill their responsibilities
and obligations as regulated by Laws. Strengthen the role of trade unions and IPs Management Board
in order to ensure interests of workers

a. Local socio-economic development plan
b. Local industrial park planning
c. Local policies in IPs management
2.1.4.3 Factors belonging to enterprises in industrial parks
a. Enterprises's awareness of the role of sustainable development
b. Capacity of an enterprise includes:
c. Request by the market and partners outside enterprises
2.1.5 Evaluation criteria on IPs development management towards sustainability
Evaluation criteria for the industrial park development managementin towards sustainability are
criteria for evaluation of industrial park development towards sustainability. Results and effectiveness
of the State management of industrial parks are the development of industrial parks towards
sustainability at present and in the future. Criteria for development of industrial parks towards
sustainability are divided into 3 groups: (1) assessment of the sustainable economic development, (2)
- 10 -


assessment of the sustainable social development, (3) assessment of the sustainable environment
development. In which, each index group is divided into 2 sub-groups, which are indices of sustainable
development assessment in the IPs and assessment of the spread of IPs to the locality where the IP is
located. Results of indices in these 3 criteria groups reflect effectiveness of State management for
sustainable development of industrial parks, as follows:
- Suitability of strategy, planning and State management policies for industrial parks.
- Feasibility of policies and State management measures for industrial parks.
- Validity of policies and State management measures for industrial parks.
- Effectiveness of policies and State measures for industrial parks.
2.1.5.1 Indices for evaluation of IPs development management towards economic sustainability
a. Indices for assessment of IPs development management towards economic sustainability inside IPs
Industrial zone planning quality
Occupancy rate of industrial parks
Total registered capital, implemented investment capital

- IPs infrastructure completion
- Investment environment improvement
Experiences in management of IPs development towards social sustainability
Chapter 3
ACTUAL SITUATION OF MANAGEMENT OF IP DEVELOPMENT IN HUNG YEN
PROVINCE TOWARDS SUSTAINABILITY
- 11 -


3.1 Overview of establishment and development of IPs in Hung Yen Province
3.1.1 Overview of natural conditions and socio-economic conditions in Hung Yen Province
Hung Yen is the province in the Northern Delta which is located in the center of the Red River Delta
and one of 7 provinces and cities in the Northern key economic region located in the low plain of the Red
River Delta.
Hung Yen has 23 km of the 5A national road with 4 lanes, and 26 km of the 5B national road with 6
lanes running from the west to the east and connecting Hanoi with Dinh Vu Port. Besides, it has 56 km of
the 38 national road from Bac Ninh and Hung Yen, and 43km between the 5 national road and the 1
national road in Hanam Province, the provincial roads such as the 202 PR, the 200 PR, the 203 PR, THE
195 pr and the connecting road between the 5B national road and Cau Gie-Ninh Binh highway. The Hanoi
- Hai Phong railway running through the Hung Yen territory is 17 km long, considered an important point
for economic connection with other localities. It can be said that in addition to favorable geographical
locations, the transportation system of Hung Yen has many advantages for socio-economic development
and investment attraction. Hung Yen province has 10 district-level administrative units, including 1 town,
09 districts and 07 wards, 09 towns and 145 communes.
In 2016, GDP increased by 8.1%; agricultural and aquaculture production value raised by
2.53%; Industrial production index increased by 8.5%. Industrial production index increased by 8.5%;
Total per capita products reached 44.5%; export turnover reached 3,197 million USD; Total budget
revenue is estimated at 9,009 billion.
The natural population growth rate is 0.92%; the poverty rate is expected to be 5%; the rate of
trained workers is 56%, creating new jobs for 2,180,000 laborers.

200 ha
9
Ngoc Long IP
100 ha
10
Ly Thuong Kiet IP
300 ha
Source: IPs Management Board, 2016
3.2 Actual status of management of IPs development in Hung Yen Province towards sustainability
3.2.1 Actual status of management of IPs development in Hung Yen Province towards economic
sustainability
3.2.1.1 Management of IPs development in Hung Yen Province towards economic sustainability
a. IPs development planning
IPs accepted for planning shall comply with regulations on industrial park planning and have
coordination with the provincial socio-economic development planning. The locations of industrial
parks have convenient traffic and near the locations where labor resources are abundant and services
for laborers' life are supplied. The planned industrial parks have satisfactory infrastructure facilities
such as frontage roads and traffic interchanges with provincial roads and national road. Actual
construction and implementation of planning, adjustment and supplementation of planning for 3 times
shows that industrial park planning is still spreading, short-term, high latency as compared to reality.
The planning quality has been positively changed according to the industrial planning demands.
Industrial parks are planned at the first stage, typically Pho Noi Industrial Park has low quality
- 12 -


planning, infrastructure is not synchronous and modern, especially lack of modern waste treatment
system, unsatisfactory green environment and water surface, missing sustainable development factors,
however the planned industrial parks after that have overcome these limitations. Thang Long Industrial
Park II is a typical example for modern and sustainable industrial park planning. Planning has
sufficient technical infrastructure works including available site areas for construction of factories,

infrastructure, ensuring sufficient areas for receipt of investment projects.
Hung Yen is active in investment environment improvement
Investment encouragement policies
Incentives on investment capital and credit:
Preferential policies on import tax exemption and reduction, corporate income tax:
Investment support policies
Preferential investment in industrial park infrastructure construction.
Incentive on advertising information and mobilization of investment in IZs:
3.2.1.2 Assessment of criteria on management of IPs development in Hung Yen Province towards
economic sustainability
a. Criteria on assessment of management of IPs development in Hung Yen towards
sustainability inside IP
(1) Planning quality and IPs occupancy rate
* IPs planning quality
Most of IPs in Hung Yen are planned at the areas with favorable geohraphical conditions on big
traffic roads which are convinient for goods conveyance from Hung Yen to airports, ports and vice versa.
- 13 -


IPs are mainly concentrated in the northern areas of the province such as in Yen My and My
Hao districts. Of which,Yen My has 6 out of 11 IPs in the whole province and My Hao has 5 out of 11
IPs in the whole province. The high concentration of industrial parks in some districts puts great
pressure on social and environmental issues in localities with dense industrial park content. Prices in
Yen My and My Hao Districts are often much higher than other localities in the province. Especially,
demands in kindergartens and schools are big due to crowded workers while the current situation
cannot meed those demands yet. Industrial parks are too close together resulting into fiercer
competition among enterprises. There has been a phenomenon that some enterprises are concerned
about difficulties into workers recruitment, so they do not dare to continue investtment in the IPs.
IPs occupancy rate
Table 3.4. Summary table of IPs in Hung Yen

operatio
n

Total
registere
d
investme
nt
(millions
USD)

Total
implement
ed
investment
(millions
USD)

596

170

148

1,391

1,155

8.19


g to
planning
Phố
Nối
A
Dệt
may
Phố
Nối
Thăn
g
Long
II
Minh
Đức
Total

1,260

310

255

3,488

Registered
investment/1
ha of land
use



42

2.10

1.67

0.33

0.21

11.25

11.15

2.77

2.26

Average
Average
investment/registe
investment/operat
red project
ed project
(millions USD) (millions USD)

2,842

Source: Conclusion Report of the year 2016 and main tasks of the year 2017 by IPs

in 2015 and VND1,700billions in 2016.
Contributions to industrial production value
3.2.2 Actual status of management of IPs development in Hung Yen towards social sustainability
3.2.2.1 Actual status of management of IPs development in Hung Yen towards social sustainability
a. Actual status of compensation, land acquisition and resettlement for residents when land
acquisition for IP construction
For compensation management, land acquisition and resettlement for residents when land
accquition for IP construction, Hung Yen Province Peoples's Committe has already abided legal
regulations on land acquisition and supported resettlement for residents and also make many law
documents in order to create legal corridors for implementation by the relevant agencies.
Ađitionally, Hung Yen Province proactively propagandized benefits of construction and
development of IPs by media and meetings among State agencies, the owner and the residents whose
land is acquired, persuaded the residents to comply with the State's policies on land acquisition. Of
which, it is affirmed that the State policy on implementation of the land acquisition task for IPs
construction for the socio-economic development demands, but not negotiation on land sales between
residents and enterprises.
b. Career training, human resource development and local laborer encouragement by
enterprises
For human resource development at IPs, Hung Yen Province People's Committe has carried out
simplization of land fund support policies and administrative procedures, etc. so that investors, schools
and career training centers can feel comformtable to invest into business of career training filed for the
purpose of skilled human resource supply for many enterprises in IPs. Hung Yen Province also
regulated enterprises who use land acquired from residents to facilitate jobs for those residents.
One of the enterpise attraction goals into IPs is the hope to create jobs for local residents. Hung
Yen Province career center usually holds job festivals as a bridge between enterprises at IPs and
laborers. IPs Management Board is the contact person between enterprises and career centers for
laborers.
Nevertheles, most of enterprises at IPs are lack of laborers, mainly workers due to few supply
sources, limitted high skilled laborers, and the relevant agencies have failed to stop this status despite
of having taken many measures.

3.2.2.2 Evaluation of criteria on management of IPs development in Hung Yen towards social
sustainability
(1) Job creation and income increase for local laborers
Hung Yen currently has 2,631 enterprises, corresponding to 153,596 laborers; of which, IPs of
the province have only 310 enterprises (accounting for 11.8%), but the current number of laborers are
42,500, presenting for 27.7%. That shows that IPs have attracted a large number of laborers of the
province. Esspecially, FDI enterprises are only 172 (accounting for 6.5% of the province), but the
number of laborers are 30,114, corresponding to 19.6% of the province and 70.9% of IPs).
Average income per person for laborers in IPs is much higher than residents in the province.
This income has annualy increased during the past years and has been higher than region minimum
wage as regulated by the State. It proves that living standards of residents have been improved.
(2) Labor restructuring by industries
According to stastics, up to 2015, the whole province has 153,196 laborers at enterprises.
Laborers at FDI enterprises have increased 3 times between 2011 and 2015. Laborers in IPs have
raised by 3.1 times, thereby making laborers in the whole privince increasds by 1.58 times. Of which,
laborers for engineering industry have rasied by 1.8 times.
(3) Assessment of improvement of local resident's living standard
IPs are formed and developed, so resident's living standards are improved. Ability to access
healthcare services is enhanced and average number of doctors per ten thousands of residents and
number of patient beds per ten thousands of residents have increased. The number of cases suffered
from diseases has reduced strongly.
(4) Ability to ensure security of the locality where IPs are located
With development of IPs, along with attraction results of FDI projects into IPs, residents' living
standards have been improved. However, some negative impacts like social security have occured.
3.2.3 Actual management of IPs development in Hung Yen towards environmental sustainability
3.2.3.1 Management of IPs development in Hung Yen towards environmental sustainability
a. Environment management mechanisim
Summary and making Report of environmental protection of IPs has had many difficulties
because of totally depending on reports monitoring reports and results by infrastructure companies and
- 16 -

whole area has greener area of 175.44ha, accounting for 13.9% of the entire area.
Natural resource saving, recycled energy use have played an important rol in clean production
and maintained SD of IPs in Vietnam in general and in Hung Yen in particular. However, this has not
been strictly implemented by enterprises.
3.3 Analysis of factors affecting management of IPs development in Hung Yen towards
sustainability
3.3.1Factors belonging to State management tools for IPs
a. Policies and strategies of IPs development by the Governement
b. Clasification and decentralization of management
c. Impacts by legal documents of the State
3.3.2 Factor group belonging to the local authority
a. IPs development planning in association with socio-economic development in Hung Yen
- 17 -


b. Policies related to compensation and land acquisition
c. IPs Management Board of Hung Yen
d. Factor group belonging to enterprises
3.4 Evaluation of actual status of IPs development management in Hung Yen towards
sustainability
3.4.1 Assessment of good points of management of IPs development in Hung Yen towards
sustainability
Infrastructure planning and development of IPs
IPs of the province are formed, built and developed in compliance with general planning
approved by Prime Minister. IPs planning quality has been improved. Planning includes all technical
infrastructures such as available areas for construction of factories, power and water systems of high
capacity, waste treatment system and greenery system with high rate. Infrastructures of IPs are
increasingly invested which helps development promotion of IPs infrastructures
Infrastructure construction
State management agencies in Hung Yen selected projects to resources mobilization into

Industrial zone planning
Planning industrial zones in the direction of sustainable development: Actual planning
implementation, adjustment and supplement for many times have shown planning is still spreading,
shorrt-term and slow.
Construction of industrial park infrastructure
Infrastructure construction in IPs in Hung Yen has many outstanding problems sucgh as land
policies, and land acquisition policies, slow implementation of infrastructure Investment attraction in
industrial zones
Investment attraction into IPs
Investment attraction into IPs has had some limiations:
+ Few projects with big investment and high-tech contents at IPs
+ Ineffective investment promotion, sometimes passive.
Training, development and supply of human resources
The training, development and supply of human resources for enterprises in the IPs are still
limited, resulting into failure to meet requirements of investment attraction. Industrial parks were
established and put into operation in the northern area of the province; this area concentrates nearly
80% of enterprises/projects in the province. Therefore, laborer recruitment in this area faces many
difficulties, especially enterprises with a big demand for labor. In addition, some vocational training
centers in the province are still incapable, so they cannot meet demands of enterprises, especially the
demands in high skilled human resources;
Social infrastructure management at IPs
+ Inadequate supply of housing for laborers in the industrial park. Construction and supply of
social housing for laborers and assurance of living environment for laborers in industrial parks such as
markets, schools, medical facilities, cultural houses, etc. only had unfeasible results due to limited
budget and difficult invesor mobilization caused by slow capital recovery, low investment efficiency,
difficulties in bank capital approach while investment profits from these projects are low. Abandoned
land is a waste of social properties which reduces investment use effeciency.
+ Inadequacies in management of rental accomodations for laborers in IPs
Laborers away from home in industrial zones in Hung Yen mostly rent accommodation at local
resident's houses in rural areas. These are spontaneously formed next to industrial parks and industrial

not been fully aware of the role and the meaning of the sustainable development.
Socio-economic policies are still prone to the rapid economic growth, but not paying attention
to the sustainability while expoitation and use of natural resources and environment protection. In the
other word, environment protection policies fucus on resolution of environment incidents, but not have
any long-term orientation for satifaction of future social demands. Planning and making plans of socioeconomic development and making environment protection policies are not yet closely coordinated.
Management mechanisim and SD supervision have not been clearly established and taken into valid.
Missing institutions of State management of IPs development
Currently, legal law system on IPs development in our country still has many outstanding
problems. Policies are slowy updated and renewed in accordance with general development of IPs.
There are no master planning of IPs in the direction of IPss developent in association with growth
model renewal and socio-economic development of the nation.
Ineffective management tools for IPs development in Hung Yen towards sustainability
Despite Hung Yen always proactively pushes up investment attraction activities towards SD via
introduced policies, IPs development strategies of the province have not been specifically given out.
Resource training and development in terms of quality and quantity are still limitted.
Incentive policies have been given out for investment attraction into IPs, but policies,
assessment sanctions and violation treatment have not been sufficient. This has resulted into that
enterprises run ây from obligations of taxes and insurances for employees and investment into
industrail waste. Cororrdination between IPs Management Board and departments and district people's
committes where IPs are located is inefffective, so there is no connection in production.
- 20 -


Limitations of mamnagement capacility of IPs Management Board in Hung Yen
Currently, all leaders and officials under IPs Management Board in Hung Yen clearly
understand importance and nessessity of SD implementation; however, capability of working in the
integration environment is limited and they have no ability to directly communicate with foreign
enterprises. Furthermore, incapailities of some officials have resulted into failure to affirm position and
rold of Management Board in modernization and industrialization of the province.
Chapter 4

friendly with the environment and users.
- 21 -


4.2 Potentuions and advantages of Hung Yen Province for IPs development
4.2.1 Potentials and advantages
4.2.2 Difficulties and challenges
4.3 Points of view and orientation of management of IPs development towards sustainability in
Hung Yen Province
4.3.1 Points of view of management of IPs development in Hung Yen Provine towards sustainability
In view of the worldwide and domestic contexts along with actual status of management of IPs
development towards sustainanability, the author hereby gives out points of view of management of
IPs development in Hung Yen Province towards sustainability as follows:
Management of IPs development in Hung Yen Province shall be suitable to internaltional
integration tendency and sustainable development, comply with national & economic region planning
principles of IPs establishment and development. Manage IPs development in the Hung Yen Province
teritory towards sustainability and with harmonization of "three key factors" namely economy, culturesociety-human and environment.
Manage IPs development towards development quality enhancement and concentration on
quality, operation effeciency, investment restructuring via technology reenewal, product quality
enhancement, industry connection enhancement and sector development orientation suitable according
to the local conditions. Accordingly, construction and development of specialized and creative IPs
IPs development management in Hung Yen Province towards modernization and effeciency via
construction and implementation of mechanisms and policies on IPs management in compliance with
national regulations and sepecific policies/characteristics of Hung Yen Province in order to create
specific advantages for IPs development in Hung Yen towards sustainability.
IPs development management in Hung Yen Province towards sustainability starts from
homogenous and modern IPs infrastructure construction and development including both technical
infrastructures and social infrastures.
4.3.2 IPs development management orientaion in Hung Yen Province towards sustainability
The author hereby suggests for IPs development management orientations in Hung Yen

orientation (sustainable); investment attraction careers, functional areas for comprehensive
development in the industrial park.
* Completion of hierachical classification and decentralization of State management for
IPs
Clearly fix authority and resonsibilities of each agency and organization for EZs & IPs
management
Build effective cooperation mechanisms for IPs management between IPs Management Board
and the local agencies
Finish IPs management organization models in accordance with IPs development planning
orientation across the country.
4.4.2 Solutions to awareness of sustainable development
a. The State agencies should clarify responsibilities of objects related to IPs sustainable
development
b. Change the State agencies' awareness of IPs development management towards sustainability
4.4.3 Solutions directly related to IPs development management towards sustainability
4.4.3.1 Solutions for IPs development management towards economic sustainability
a. Quality enhancement of IPs development lanning towards sustainability
b. Solutions for sustainable development of IPs infrastructure
Enhancement and diversification of investment capital for Hung Yen IPs infrastructure
construction; of which, maximize public-prive cooperation.
Synchronous and modern technical and social infrastructure construction both inside and
outside industrial park fences.
c. Investment attraction towards sustainability into IPs
4.4.3.2 Solutions for IPs development management towards soicial sustainability
a. Policy mechanism related to land acquisition and compensation
b. Solution to housing for workers at IPs
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