Ho Chi Minh City: Vinh Loc Industrial Park expansion at a standstill due to escalating compensation prices

The Ho Chi Minh City Export Processing and Industrial Zones Authority (Hepza) has just sent a report to the Ho Chi Minh City People's Committee on the slow implementation of industrial park projects, notably the Vinh Loc Industrial Park (IP) expansion, with an area of over 56 hectares, located in the new Binh Tan ward.

According to Hepza, the Vinh Loc Industrial Park expansion project is still unable to carry out compensation and site clearance work due to the high land prices in the area, leading to increased compensation and site clearance costs.

This makes the compensation process difficult, directly affecting the progress and investment efficiency of the Project.

Vinh Loc Industrial Park. Photo : Le Toan

Currently, although the Project has announced land recovery and has implemented steps to investigate, survey, measure and count land, the Project is currently suspended.

The reason for the suspension is that the investor has not been able to sign a compensation contract with the Compensation and Site Clearance Board of Binh Chanh District (old) because it has to wait for the model to be converted from a state-owned enterprise to a joint stock company.

It is known that Cho Lon Import-Export and Investment Joint Stock Company (the investor of the infrastructure of Vinh Loc Industrial Park expansion) is waiting for the competent State agency to re-evaluate the costs invested in the Project to carry out the final settlement of the conversion from a state-owned enterprise to a joint stock company.

Vinh Loc Industrial Park has a planning scale of more than 207 hectares, spread over 3 areas: Binh Tan district (old), Binh Chanh district (old) and Hoc Mon district (old).

To date, more than 90% of the planned land area has been compensated, cleared, and technical infrastructure has been fully invested. The industrial park currently attracts 147 domestic and foreign investors, with about 18,000 workers working in the enterprises.

Source: https://baodautu.vn/tphcm-khu-cong-nghiep-vinh-loc-mo-rong-be-tac-vi-gia-boi-thuong-leo-thang-d331954.html