Quang Tri pushes for infrastructure development in industrial zones

In recent years, Quang Tri Province has intensified its efforts to invest in infrastructure development and establish industrial clusters to attract businesses to develop industry and handicrafts, particularly in rural areas. The establishment of these industrial clusters has contributed to economic and labor restructuring, creating local employment opportunities. Additionally, it has addressed the issue of scattered production and facilitated management and environmental control. However, to date, the total investment in infrastructure construction for these industrial clusters has only met approximately 35.6% of the total capital required for technical infrastructure development across the province.

Hai Le Industrial Cluster, located in Quang Tri Town, was established in 2012 with a total area of 48.9 hectares. By the end of the second quarter of 2024, the total investment in infrastructure development for the cluster reached approximately US$1.6 million. The occupancy rate currently stands at 44%. The town is also developing the second phase of Hai Le Industrial Cluster, which spans an additional 16.1 hectares.

The workers employed at Sangshin Central Vietnam Factory, located in the Dong Ai Tu Industrial Cluster, Trieu Phong District. Source: H.T

To date, six investment projects have been attracted to Hai Le Industrial Cluster, with a total registered capital of US$8.1 million. Of this, around $3.4 million has been implemented. Among the six projects, four are already operational.

One of the prominent businesses in the cluster, Quang Tri Carton Packaging Joint Stock Company, began official operations in 2023. The company specializes in manufacturing and supplying carton packaging and 3-layer, 5-layer, and 7-layer corrugated sheets in A, B, C, and E wave profiles. Its products cater to various manufacturing enterprises within the province, neighboring regions, and even export to Laos. The factory operates on a 5,000 square meter area using advanced technology and modern equipment imported from overseas.

With a designed production capacity of 1.5 million square meters of carton products per month, the company has received strong support from local authorities and agencies. This includes guidance on government policies and funding programs, assistance in accessing incentives, reductions in land rental fees, and support in expanding market connections. The company plans to further expand its production capacity by acquiring additional land to construct new facilities and invest in machinery.

In Cam Lo District, three industrial clusters and one multi-sector trade-service-industrial complex have been approved for detailed planning, covering a total area of 216.53 hectares. These clusters have attracted 61 investment projects with a total registered capital of 114.2 million USD, of which approximately $51.5 million has been implemented. These investments have created nearly 1,500 jobs. Significant projects in the district include the Camel Beer Factory by TTC International Beer Joint Stock Company, An Thai Tapioca Factory, and Tien Phong Cam Lo Laminated Wood Production Factory.

Under Decision No. 1737/QD-TTg issued on December 29, 2023, by the Prime Minister, the development plan for industrial clusters in Quang Tri Province for the period 2021–2030, with a vision to 2050, includes 25 clusters spanning a total area of 899.15 hectares.

According to the Department of Industry and Trade, 16 industrial clusters in the province are operational with an average occupancy rate of 61.1%. These clusters have attracted 175 investment projects with a total registered capital of $192 million, of which around $91.8 million has been implemented. From 2021 to an estimated 2024, businesses in these clusters generate average annual revenues of nearly $123 million, contributing approximately $2.46 million to the state budget annually (with $2.91 million contributed in 2023 alone). The clusters have created jobs for nearly 6,000 workers, with average monthly incomes ranging between $205–288 per worker.

Despite the province’s efforts to balance budget allocations for infrastructure development, the funding remains inadequate to meet actual needs. To date, the total investment in industrial cluster infrastructure amounts to approximately $10.7 million, meeting only 35.6% of the total funding requirements. Of this, state budget contributions amount to about $9.9 million, while the remaining $0.75 million comes from other sources.

On July 23, 2020, the Provincial People’s Council issued Resolution No. 39/2020/NQ-HDND, introducing a program to support the development of technical infrastructure in industrial clusters during 2021–2025, with a funding cap of $615,000 per cluster. This served as a foundation for allocating mid-term public investment funds during this period. However, under Resolution No. 137/NQ-HDND, dated August 30, 2021, on the medium-term public investment plan using local budget resources for 2021–2025, the province allocated only $1.14 million for industrial cluster infrastructure development.

Given the limited funding available at the local level and the increasing demands for industrial infrastructure improvements to attract investment projects, adjustments to the support levels stipulated in Resolution No. 39/2020/NQ-HDND are crucial. This would align funding with actual needs and provide a basis for districts, towns, and cities to propose mid-term public investment plans for infrastructure development in industrial clusters during the 2026–2030 period.

Currently, the Provincial Department of Industry and Trade, under the guidance of the Provincial People’s Committee, is collaborating with relevant agencies to draft a new resolution on policies supporting technical infrastructure development for industrial clusters. This new resolution will replace Resolution No. 39/2020/NQ-HDND and be submitted to the Provincial People’s Council for consideration. The goal is to ensure the development of industrial clusters aligns with the province’s development strategy as approved by the Prime Minister.

In parallel, efforts are underway to gradually complete technical facilities in industrial clusters, attract investments, and address environmental issues. These measures will contribute to the province’s rural development initiatives and overall socio-economic growth.

According to the Industrial Development Plan of Quang Tri Province through 2020, with an orientation toward 2025, the province plans to establish and develop 21 industrial clusters covering a total area of 587 hectares. To date, 17 industrial clusters have been established, with a combined area of 527.5 hectares. Among these, 16 industrial clusters are operational and actively attracting investments. The average occupancy rate across these clusters is 63.9%. The operational clusters include Dong Le, Ward 4, National Highway 9D, Cau Lon - Bau De, Hai Le, Dien Sanh, Hai Thuong, Hai Chanh, Ai Tu, Dong Ai Tu, Cam Thanh, Cam Hieu, Cam Tuyen, Cua Tung, Krong Klang, and Huong Tan.

Four of these industrial clusters have essentially completed transportation infrastructure, while one has a centralized wastewater treatment system. As of March 2023, the total investment in infrastructure construction for these industrial clusters amounted to approximately $10.3 million, of which about $8.7 million came from the state budget and $1.65 million from other sources.

The clusters have attracted 153 investment projects, with a total registered capital of approximately $155.6 million, of which approximately $89 million has been disbursed. Currently, 94 projects are in production and business operations, 22 projects are under construction, 18 projects are completing administrative procedures, and 19 projects have temporarily suspended activities.

Ha Trang - Ngoc Mai