Fifteen years after the birth of Tan Thuan Export Processing Zone, the first industrial zone in the country, Vietnam has about 130 industrial zones (IZs) by the end of 2005. These IZs have attracted 2,202 foreign projects with a total registered capital of billion, accounting for 36 percent of FDI capital in the whole country, and 2,314 domestic investment projects with a total registered capital of VND137,000 billion (Tran Ngoc Hung, 2006). | Business environment and policies of Hanoi Chapter 5 Competitiveness of Industrial Zones in Hanoi Vu Thanh Huong Vietnam Development Forum and National Economics University Fifteen years after the birth of Tan Thuan Export Processing Zone, the first industrial zone in the country, Vietnam has about 130 industrial zones (IZs) by the end of 2005. These IZs have attracted 2,202 foreign projects with a total registered capital of billion, accounting for 36 percent of FDI capital in the whole country, and 2,314 domestic investment projects with a total registered capital of VND137,000 billion (Tran Ngoc Hung, 2006). These figures do not include billion and VND31,300 billion invested in the infrastructure of IZs. The industrial value of IZs has increased rapidly, with an annual average growth of percent from 1995 to 2000 and 32 percent from 2001 to 2005, which was higher than the growth of gross industrial output of the country. In 2005, industrial value of IZs gained USD14 billion accounting for 28 percent of the nation’s industrial value with USD6 billion of export value accounting for percent of the nation, and employ 740,000 people (Le Xuan Trinh, 2006). With these achievements, IZs have significantly contributed to the industrialization and modernization of Vietnam and facilitated the country’s integration into regional and global economies. Currently, virtually all cities and provinces of Vietnam promote the creation and development of IZs. Hanoi has six IZs with a total area of hectares (ha). Three IZs have completed infrastructure and are under operation. By the end of 2005, these IZs have attracted 105 projects with a total registered capital of 153 Competitiveness of Industrial Zones in Hanoi billion plus VND120 billion, and leased out over 400 ha of industrial land. Additionally, there are 18 industrial clusters (ICs), which are small-sized IZs under local administration, in the city, of which nine are in operation .
