Vietnam's new bridge boosts industrial parks in Mekong delta HANOI - New industrial parks (IPs) are springing up in the Mekong River Delta to take advantage of the newly-opened My Thuan Bridge across the Tien River. Located in Dong Thap southern province near the Tien River, Sa Dec IP is one of the recently built IPs in the delta. This 70ha IP, 10km away from the My Thuan Bridge, now has easy access to the various resources it needs from surrounding areas to supply its processing industries. The Sa Dec IP has called on foreign and domestic businesses to invest in machinery and equipment for other industries, medicines, and several kinds of consumer goods. To help stimulate investment at the IP, the provincial People's Committee has issued several preferential policies under which investors are exempted from paying corporate income tax for their first two years in profit and will be given a 50 per cent tax reduction for the following four years. Foreign invested enterprises will pay no corporate income tax for the first four years of profit, and will be granted a 50 per cent tax reduction for the subsequent four years. Land rental at the Sa Dec IP is between $0.35 and US$0.25 per sq.m per year. The first five projects at the IP will be exempted from paying land rental for their first five years of operation. The Sa Dec authorities said all paperwork at the IP will be based on the "one door, one seal" principle which would save investors time and money. Located in the southern province of Vinh Long, 15km from the My Thuan Bridge and near the Vinh Thai River port, the Bac My Thuan (Northern My Thuan) IP can access both waterways and National Highway No.1. Thanks to these advantages, the Bac My Thuan IP has just started work on land clearance for infrastructure construction. Three enterprises, including one wholly invested by foreigners, have already rented seven hectares to develop US$8 million worth of projects. According to the IP's management board, the IP plans to attract industries involved in electronic product assembly and processing agricultural and aquatic produce, production of fertilisers, medicines, electric wires for automobiles and stock feed. An IP official, Dinh Hoai Long, said the provincial People's Committee is looking at land prices and incentives to attract the maximum amount of investment to the IP. Another new IP, the Co Chien, has also just been given a construction licence in Long An Province. The Co Chien IP also hopes to take advantage of local natural resources and the My Thuan Bridge to promote socio-economic development in the Mekong River Delta. IPs already operating in the region are performing better since the bridge opened. The My Tho IP in Tien Giang Province is a case in point. Despite the fact that Tien Giang Province is linked directly with HCM City via Highway No.1, investment increased only when the bridge opened. Two-thirds of the total projects which registered to rent land when the IP was established in 1997, have begun construction and plan to be operating by the end of the year. Most will be involved in processing seafood and agro-products. In addition to the My Thuan Bridge, the planned Can Tho Bridge across the Hau River at Can Tho city in the Mekong River Delta, will also be a vital link between HCM City and the delta and will help boost the socio-economic development of southern Vietnamese provinces. When it is completed in 2005, the US$295 million, 2.6km bridge will provide a much needed alternative for vehicles now crossing the river by ferry. Construction of the Can Tho Bridge will begin next year and provinces that will benefit from the bridge have already outlined plans to build several new IPs and develop their existing IPs. Vietnam News Agency - June 15, 2000.