Summary of Doctoral thesis: Impact of investment in developing infrastructure of industrial zones on attracting investment in industrial zones in Binh Dinh province

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INTRODUCTION
1. Urgency of the Research Topic
Investment in infrastructure development of industrial zones (IZ) is one of
the important factors for attracting investment in the industrial park, promoting
economic and social development of local national and especially the
developing countries.
This view not only the researchers affirmed in theory, but also reflected the
success of countries such as China,Taiwan, Thailand in the implementation of
investment and development of infrastructure to enhance the industrial zone to
attract investment from which creates big leap forward for growth and
economic development. However, not every country or locality is successful
with this model. So in terms of theoretical and practical development
investment IZ infrastructure impacts how to attract investment into the IPs?
In the world and Vietnam have much theoretical research and
experimental development investment shows infrastructure IPs positive impact
to attract investment in industrial zones. Investment and development of
infrastructure IPs contribute to improving the production efficiency of the
investment business ((Marshall (1890); Jacobs (1969); Krugman (1979, 1991);
Reduce costs for investors (Marshall (1890); Weber (1929); Vernon (1966);
Badri, Masood (1996); Fujita, Thisse (1996)); The Competitive Advantage of
Nations (Porter, 1990), It contributes to increase competitiveness for investors;
Mitigation of Investment Risk by Kuchiki (2005, 2006), Nguyen Ngoc Anh,
Nguyen Thang (2007); Dinh Phi Ho (2012); Pham Van On, Tran Phan Doan
Khanh (2012) also showed that the infrastructure of the industrial zone has
positive impacts to attract investment in the industrial zone. According to the
survey data of the Central Development Cooperation Consulting Group in 2012
from investors operating in the industrial zones of the region, investors think
that the important factors will positively affect the investment decisions of
enterprises in the industrial zones in order: preferential policies, support;

Geographic location; advantage of labor cost; synchronous infrastructure;
quality of human resources; potential market; abundant natural resources. It can
be said that many researchers have evaluated the investment in infrastructure
development of the industrial park plays a very important role to attract
investment in the industrial zone. However, investment in infrastructure
development of the IZ includes investment in the development of technical
infrastructure of the IZ and investment in the development of social
infrastructure in the industrial zone.
Most of the studies are only in the analysis of the impact of investment in
infrastructure development of the IZ or the investment in the development of
technical infrastructure of the IZ with little analysis separation of the two


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contents of investment in development of social infrastructure of industrial
zones and investment to develop technical infrastructure of industrial zones to
attract investment in industrial zones. In Vietnam fewer researchers analyzed
aggregate channels the impact of the investment and development of
infrastructure to attract investment in industrial parks in the industrial park. To
carry out investment activities in industrial zones is a process that consists of 3
stages: preparation of investment, implementation of investment and operation
of investment results; Different investment stages will have different criteria for
attracting investment. However, studies often measure investment attraction in
an area such as investment decisions, investment intentions, investment
attractiveness results, or investor satisfaction, but not yet evaluated criteria
appropriate to each stage of the investment. The author's research will analyze
the impact of infrastructure development investment in the IPs to attract
investment into the IZ in three aspects: investment decision in the IP
(corresponding to investment preparation stage), Results attract investment in
industrial zones (corresponding period of investment implementation) and the

level of satisfaction of investors in the industrial park (which corresponds to the
operational phase of investment or the result of investment cycles). From the
beginning of 1990 until now, investment in infrastructure development of
industrial zones in Vietnam has taken place with the increase of investment
capital in these industrial zones. According to the report on the model of
industrial parks and economic zones in 2017 of the Ministry of Planning and
Investment, "from the establishment up to now, foreign direct investment in
industrial zones, export processing zones annually from 35% - 40% of the total
registered capital of Vietnam; Particularly the industrial sector accounts for
nearly 80%. Thus, the investment in the development of the industrial park
model has attracted a great amount of capital for Vietnam and accelerated the
process of industrialization and modernization. Experience in developing
industrial zones in the country and in the world is that if the investment in
industrial infrastructure is delayed or incomplete, lack of synchronism, the IZs
are in danger of ineffective. Each industrial park has a synchronous and modern
infrastructure, the more active the investment is; poor infrastructure, not
complete, the attraction will be more difficult.
However, in Vietnam also showed an increase in the number of IPs is not
proportional to the occupancy rate of the industrial park. Even those industrial
parks that have invested in infrastructure, the occupancy rate remains low, not
contributing to the economy commensurate with the invested resources; It has
not shown the role of local economic development as the target. This is actually
happening in many industrial parks in Vietnam in general and in Binh Dinh in
particular. Binh Dinh determines investment activities to develop the
infrastructure of the IZ will be an important factor to help the province to


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attract more investment and social and economic development, making Binh
Dinh become the growth pole in the economic region Central key. According to

the plan to develop Vietnam's industrial parks to 2020, there will be 08
industrial zones in Binh Dinh with a total planned area of 1,961 hectares. Phu
Tai Industrial Zone is the Prime Minister established under Decision No. 1127 /
QD-TTg dated 18/12/1998 scale industrial park area of 80 hectares is the first
focus of Binh Dinh Province. Up to now, the size of Phu Tai Industrial Park has
been adjusted 5 times, expanding to meet the investment needs of enterprises
and increased to 345.8 hectares. Subsequently, Long My Industrial Park was
formed in 2004 to supplement the resources accelerate industrial development
and contribute to the economic restructuring of the province. Currently, Long
My Industrial Zone has basically filled up the secondary project area of over
110 hectares on the planning approval. Established and invested after Hoa Hoi
Industrial Park but Nhon Hoa Industrial Zone has progressed to build technical
infrastructure quickly and can be seen as filling the first phase of the industrial
zone. Cat Trinh Industrial Park was established in October, 2011 and is
currently implementing compensation, land clearance and resettlement,
infrastructure development. Previously, in June 2011, Hoa Hoi Industrial Park
had its investment certificate revoked because the infrastructure investor did
not have the capacity to carry out the construction work in accordance with the
schedule of commitments, although the province has created favorable
conditions profit. With these conditions, up to 2015, the industrial zones in the
province has 219 projects granted certificates with total registered capital of
VND 30,333 billion; By 2017, there were 226 projects with 11,856 billion dong
of registered capital (due to a large project canceled investment registration),
the cumulative realized capital is only 7,421 billion. However, the province's
industrial park projects no large-scale investment, high technology, capable of
promoting the development of many industries and sectors. Capital foreign
investment into Binh Dinh is still small, the majority of investment projects
foreign direct investment has attracted is small projects, financial capability is
not strong and not creates incentives to attract large investors. Investment
capital attracted mainly concentrated in three industrial parks already relatively

complete the infrastructure with the occupancy rate high (80% or more) also in
other industrial parks are in the stage of investment in infrastructure IPs
attracted some project or not attracted. According to Mr. Duong Ngoc Oanh,
Head of Investment Management Department of Binh Dinh Economic Zone
Authority, said: "The attractiveness of investors is the infrastructure. The
investment spread, drip can not effectively promote the IZ but also lead to
waste. We can see the number of industrial zones established in the province is
8 but actually only 3 IZ fundamentally improve the system infrastructure, while
the other industrial parks incomplete development investment infrastructure


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floor is also a major constraint in promoting investment in industrial zones.
"According to the specialized agencies of the Province, "the preferential
policies have paralleled the synchronization of infrastructure, human resources,
and other support new attractive enough to investors; top priorities are investors
interested in Binh Dinh but the main point is to take industrial zone
infrastructure." The delays in compensation and land clearance, delayed
issuance of land use right certificates, infrastructure in industrial zones have not
been invested in quality and integrity, causing discouraging secondary investors
to delay or postpone investment investment.The delays in compensation and
land clearance, delayed issuance of land use right certificates, infrastructure in
industrial zones have not been invested in quality and integrity, causing
discouraging secondary investors to delay or postpone investment investment.
On the other hand, due to the low starting point of social infrastructure in the
province, it also affects the attraction of investment in industrial zones. The
housing project for workers associated with urban planning and industrial park
will solve the situation tenancy with conditions of living in appalling conditions
in the residential area near the industrial zones in the province, but the
industrial zones in the province have not been properly invested. According to

Nguyen Thi Hong Si, Deputy Director, Center for Investment Promotion
(Department of Planning and Investment of Binh Dinh province), "the perfect
infrastructure to ensure that the IPs have not drastically, leading to regulation
Wherever the population grows there. Then many other issues arise when the
IPs share infrastructure with residential areas. This has greatly affected the
attraction of investment in industrial zones. “Thus, investment activities
developed infrastructure IPs (infrastructure engineering and infrastructure in
society) in Binh Dinh has a large effect to attract investment in industrial zones
in the province. Completing the investment in infrastructure development of the
industrial zone and bringing into play the positive impact of the infrastructure
system of the industrial zone to enhance attracting investment in industrial
zones in the province is a matter of concern in Binh Dinh in recent years. On
the situation in Vietnam in general and Binh Dinh in particular that researchers
paid more attention to the issue of investment and development of
infrastructure IPs positive impact of the investment in industrial zones like on
aspects: the decision to invest in industrial zones, results in the industrial zone
to attract investment, the level of satisfaction of investors in IPs? At what level?
What channels are affected? Investing in infrastructure development of the
current industrial park has met the requirements of investors or not? Is it
necessary to invest in developing more IPs? And more, policy-makers do about
investment in developing infrastructure to strengthen the industrial zone to
attract investment in industrial zones in Binh Dinh province? The analysis of
the study will contribute to the interpretation of these issues both theoretically


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and practically. Before the gaps of the previous studies and the practical
problem understand the impact of investment in infrastructure development to
attract investment in industrial zones in IZ is necessary. Therefore, the author
selected the topic "Impact of investment in developing infrastructure of

industrial zones on attracting investment in industrial zones in Binh Dinh
province" as thesis.
2. Objectives and Research Questions
Overall objective is to study the impact of investment and development
of infrastructure to attract investment in industrial parks in the industrial park.
The author also made a number of proposals on investment in infrastructure
development of the industrial zone to enhance attracting investment in
industrial zones for managers and infrastructure investors.
To achieve the research objectives, the author answers the following
research questions:
i. What factors affect the investment attraction in the IP?
ii. Investment and development of infrastructure to attract IZ impact
investing in industrial zones through which channels?
iii. The impact of investment and development of infrastructure to attract
investment in industrial zones in IZ?
iv. What are the solutions to invest in infrastructure development of the
industrial zone to increase attracting investment in industrial zones?
3. Subjects and scope of research
The subject of research is the impact of investment in developing
industrial infrastructure to attract investment in industrial zones.
The scope of the research is research in industrial zones in the province
of Binh Dinh. Secondary data collected during the period from 2010 to 2016
and survey respondents included managers, investors inside IPs and investors
outside industrial zones in Binh Dinh province.
4. New contributions of the thesis
In theory and research methods
The thesis synthesizes and analyzes the four channels of investment in
the infrastructure development of the IZ to attract investment into the IZ
including the channel of business operation efficiency, cost channel, channel of
competitiveness and risk channel. The thesis elaborates the model and

estimates the impact of two contents: investment in development of technical
infrastructure of industrial zones and investment in development of social
infrastructure of industrial zones to attract investment in industrial zones on
three sides edge is the decision to invest in the IZ, the results attracted to the IP
and the level of satisfaction of investors in industrial zones.The thesis points
out investment and development of technical infrastructure in industrial zones
positively impact the decision to invest in industrial zones to attract investment


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results in IZ and the satisfaction level of investment in the industrial park home.
Investment in the development of social infrastructure in the industrial zone has
a positive impact on the satisfaction of investors in industrial zones.
Practices
The thesis identifies and points out the nature; Analysis of the impact
channels of investment in infrastructure development of the IZ to attract
investment into the IZ. At the same time, it is estimated that this impact on the
overall factors affecting the investment attraction in the IP. This helps
managers and investors to infrastructure controlled or adjusted elements of
investment and development of infrastructure to promote industrial parks to
attract investment in industrial zones. Thesis assess the impact of investment
and development of infrastructure industrial zones to attract investment,
depending on the stage of investment activities with the criteria corresponding
to the decision to invest in industrial zones, the results draw on IPs and
satisfaction of investors. From here, the thesis proposed for managers and
investors IZ infrastructure in the province of Binh Dinh reasonable solutions
for investment and development of infrastructure to enhance the industrial zone
to attract investment in industrial zones.
5. The composition of the thesis
Apart from the preamble and conclusion, the dissertation contains five

chapters:
Chapter 1: Overview of research
Chapter 2: Theoretical bases on the impact of investment in the
development of industrial zone infrastructure to attract investment in industrial
zones.
Chapter 3: Research Methods and Research Models
Chapter 4: The impact of investment investment in infrastructure
development of industrial zones to attract investment in industrial zones in
Binh Dinh province
Chapter 5: Orientations and solutions for investment in development of
industrial park infrastructure in order to attract more investment in industrial
parks in Binh Dinh province.
In addition, the thesis also includes:

CHAPTER 1: OVERVIEW OF RESEARCH
1.1. Research related to investment in infrastructure development in
industrial zones
The issues related to infrastructure investment and developments have
been paid attention by many researchers in the world and in Vietnam.


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The theoretical issues on planning, territorial organization, analyze the
situation of planning, choosing placement IPs from which to make the solutions
planned industrial zones in order to develop industrial parks in Vietnam is
mentioned in the case studies as Nguyen Cao Lanh (2000), Pham Dinh Tuyen
(2001), Nguyen Xuan Hinh (2003) and a number of other studies.The research
team on the status of development and sustainable development of industrial
zones in Vietnam has analyzed in detail the current status of development of
IZs in Vietnam and other localities, assessing the current and future of

industrial zones orientation for policy makers to develop industrial parks and
sustainable solutions for sustainable development IPs are the authors give a
very rich and consistent with the practice of Vietnam by Nguyen Chon Trung,
Truong Giang Long (2004). Tran Ngoc Hung (2004), Vu Thanh Huong (2006),
Phan Manh Cuong (2015)... Research team on investment in infrastructure
development such as Nguyen Ngoc Dung (2010), Tran Ngoc Hung (2009), and
Nguyen Dinh Trung (2012) Nguyen Ngoc Dung (2010) analyzed the current
status and proposed a number of indicators to assess synchronism, indicating
the ability of synchronous development of industrial zones in Hanoi. Research
on the issue of investment in social infrastructure development as well as the
social impact of industrial zone development which proposes solutions to social
problems that arise along with the investment and development of industrial
zones number of writers of interest such as Tran Viet Tien (2008), Le Xuan Ba
(2007), Hoang Ha, Ngo Thang Loi and others (2009), Tran Ngoc Hung
(2009)... Thus, there have been many studies related to us by reasoning and
status related to investment activities developed infrastructure IPs in many
aspects in Vietnam and the different localities in Vietnam. These studies have
also proposed useful solutions and recommendations for policy makers
involved in investing in infrastructure development in the IZ.These studies in
Vietnam usually only stop the analysis, evaluation and comparison of
investment activities in infrastructure development of IPs and solutions and
proposals but do not use many quantitative tools. Besides, there are no studies
related to infrastructure investment in industrial zones in Binh Dinh.
1.2. Research related to attracting investment into industrial zones
According to Dunning (1993), these three factors are the advantage of
ownership, location advantage and internal advantage in answering three
questions: why multinationals want to invest abroad, where to invest and how
to invest? Porter's research (2000) Competitive Advantages, Investment Sites,
Industry / Industry Combinations and Corporate Strategy provide a dynamic
approach to investment decision motivation, highlighting the role of public

corporations. Industry / industry in the competitive strategy of enterprises, at
the same time analyze the role of investment locations in the process of
forming competitive advantage of enterprises. Walcott (2003) studied the role


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of Chinese industrial zones in attracting modern technologies to produce
quality goods for domestic and international markets.In terms of factors
affecting the attraction of investment in industrial zones are also many study
authors. Le Viet Anh (2004), Nguyen Dinh Tho (2009), Dinh Phi Ho (2012)
used survey data of 226 enterprises in IZs in Vietnam to assess factors affecting
investment attraction In the industrial zone with SPSS software, the
infrastructure factor is one of the three factors influencing the investment
attraction in the industrial park after the investment and living environment.
There have been many theoretical research and empirical analysis with
qualitative and quantitative analysis of the world and Vietnam in attracting
investment in industrial zones. But overall, the study only integrated study of
factors affecting the attraction of investment and joint evaluation the
relationship between investment and development of infrastructure and
industrial zones to attract investment in the industrial zone, mechanism of
action, and the impact of how the researchers have not yet been analyzed. 1.3.
Research related to the impact of investment in the development of industrial
zone infrastructure to attract investment in industrial zones
1.3. Studies on the impact of investment in the development of industrial
zone infrastructure to attract investment in industrial zones
1.3.1. Studies on the impact of investment in the development of industrial
zone infrastructure to attract investment in industrial zones
Research by Mai Van Nam, Nguyen Thanh Vu (2010); Nguyen Thi Ninh
Thuan, Bui Van Trinh (2012); Nguyen Tan Tuy, Nguyen Thi Tuyet (2013) with
data sets collected in different localities have concluded that the investment in

infrastructure development of the IZ has the strongest impact on attracting
investment into the IZ. In addition, Nguyen Ngoc Anh & Nguyen Thang (2007)
has demonstrated that the market and infrastructure factors influence the spatial
distribution of FDI among localities. Nguyen Manh Toan (2010), by statistical
methodology, describes the study as concluding that technical infrastructure
development is the most important factor, ranked in turn following the
investment incentives of local government, as well as the central government;
low operating costs; Factors are less important than potential markets; Factors
that do not affect the decision to choose the location of the investor are
geographic location and social infrastructure. So, there are many studies on the
factors that affect the investment attraction in the IP from which the impact of
investment in infrastructure development of industrial zones to attract
investment in industrial zones at different angles with the varying degrees of
impact in different datasets. These studies combine quantitative and qualitative
analysis to provide the most comprehensive research results. Infrastructure
investment is often considered by some authors in terms of investment in the
development of local infrastructure and no authors have studied the impact of


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investment factors Infrastructure development of the IZ to attract investment in
the IP.
1.3.2. Studies on the impact channels of investment in the development of
industrial park infrastructure to attract investment in industrial zones
i. Effective channel of business activities of investors
From the development practice of many countries in the world over the
last two centuries, economists have proven that the model of IPs and ICs
contributes to create and increase economies of scale through the collective
efficiency. Medium economic activity the focus of economic activity is derived
from the spatial concentration of activities and economic agents. Investment in

infrastructure development of the IP contributes to the concentration of
investors around a certain space. This is reflected in the views of Afred
Marshall (1890), Jaffe et al (1993), Holmes (1999), Costa and Kahn (2001). In
addition, recent studies such as Kim (1995) and Glaeser et al (2001); New
Economic Geography Theory (NEG) with representatives from Krugman
(1991); Fujita, Krugman & Venables (1999), Henderson (1999); Fujita and
Mori (2005); Paul Krugman (1979). Investment in developing industrial zones
with the formation of infrastructure systems affect the scale of business
activities of investors since then attract investors to invest in industrial zones.
ii. Cost channel: According to studies by Glaeser et al. (1992); Mills and
McDonald (1992); Moulaert and Djellal (1995), at the regional level, economic
growth and technological development are strongly influenced by economic
efficiency derived from proximity to geospatial space. By choosing a business
location close to or together with a variety of businesses in many different
professions in the centralized economic space or in the FEZs, that enterprise
will have access to business operations and services, suppliers, distributors,
research organizations ... Fast and easy and with low transportation costs. After
the economy, cost is also a factor that motivates investors to invest in industrial
zones.
iii. Investor Competitiveness Channel: In the traditional cost approach,
the main factors that have been identified in the study by Michael Porter (1990
and 2000) on competitive advantage, investment location, Industry / industry
and company strategies provide a dynamic approach to investment decision
motivation, highlighting the role of industry / industry combinations in
corporate competitiveness, At the same time, we analyze the role of investment
locations in the process of forming the competitive advantage of enterprises.
iv. Risk channel in investment: Kuchiki's (2005) study that when
investing in IPs, the risk of foreign investors can be reduced. If the investment
period is long, the risk of investing in the developing country's IPs will
decrease. These analyzes allow the country to attract FDI understandable by

international investors to adjust domestic policies as well as to design


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appropriate investment incentives, especially incentives applied in IPs are
superior to other IPs.
1.4. Research gap and conclusion
Through the study overview related to the impact of investment in
infrastructure development of industrial zones to attract investment in industrial
zones, the author draws the following research gaps:
About content
There have been many studies on investment in infrastructure
development in IZ in both theory and practice in Vietnam and some regions
and localities in Vietnam. However, research is focused on some aspects of
development investment such as investment in technical infrastructure
development, waste water treatment, housing issues for laborers. There are not
many studies analyzing all contents of infrastructure development investment
in industrial zones. The previous studies mainly assessed the impact of the
common infrastructure factors (local and industrial zones) or just assessed the
impact of investment in the development of technical infrastructure of the IZ to
attract investment are many studies assessing the differential effect of
investment in development of technical infrastructure of industrial zones and
investment in development of social infrastructure of industrial zones to attract
investment in industrial zones. In this study, the author assesses the impact of
these two contents on attracting investment into the IZ.
The analysis of channel impact of investment to develop infrastructure of
the IZ to attract investment in the IZ is still low. At the same time, there are no
studies to synthesize the impact channels of investment to develop
infrastructure of the IZ to attract investment in the IP that the author proposed
include: channel business performance, channel cost, channel risk, channel

competitiveness.
According to the sources that the author has access to, so far the research
usually only use one indicator to measure investment attraction in the IZ, no
research using three aggregate indicators as the author. For each period of the
investment cycle, the investment decision criteria (corresponding to the
investment preparation stage), the investment capital performance criteria
(corresponding to the stage of investment execution the level of satisfaction of
the investor (corresponding to the stage of investment performance and can
evaluate the whole investment cycle) . The impact of the infrastructure system
of the IZs to attract investment into the IPs is different. Understanding the
difference in impact at each stage of investment is important and has special
implications for practitioners.
About research methods
The author uses a combination of qualitative and quantitative methods to
study the nature of the investment impact to develop the infrastructure of the IZ


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to attract investment in the IZ in a locality. The author conducts investigations
both inside and outside the IP for impact assessment. This more diversified
selection will help to study more comprehensively the impact of investment in
infrastructure development to attract investment into the IZ during the cycle of
investment.
Regarding quantitative methods, the authors use OLS, Logistic, and Probit
methods to analyze the impact or influencing factors or analyze the statistics
describing the data. Secondary to draw conclusions the author uses the Binary
Logistic regression analysis, the OLS regression to estimate the impact of
investment in infrastructure development to attract investment in industrial zones
with three criteria: The results of attracting investment into IPs and the level of
satisfaction of investors correspond to the stages of attracting investment into

IPs. The comprehensive use of indicators in the study will give more perspective
on the impact of the entire investment cycle as well as the whole process of
attracting investment into the IZ. At the same time, T-test co-ordinates to analyze
the impact channels of investment in infrastructure development to attract
investment into industrial zones. Explanation from the practice combined with
research gaps decided to select the topic "Impact of investment to develop
industrial infrastructure to attract investment in industrial parks in the area Binh
Dinh Province "for research. This is an independent research project that does
not duplicate the name and content of pre-published scientific works.
CHAPTER 2:
THEORETICAL BASES ON THE IMPACT OF INVESTMENT IN
THE DEVELOPMENT OF INDUSTRIAL ZONE INFRASTRUCTURE
TO ATTRACT INVESTMENT IN INDUSTRIAL ZONES
2.1. To invest in the development of industrial park infrastructure
Infrastructure investment is the mobilization and use of resources to
carry out activities to develop the infrastructure system of the industrial park in
a certain period of time, serving investment activities. the business of investors
and for development purposes. The contents of investment in the development
of industrial park infrastructure include:
According to the scope of investment, investment activities to develop
the infrastructure of the IZ include investment in infrastructure development
inside the fence of the IZ and investment in the development of infrastructure
outside the fence of the IZ.
According to the nature of the infrastructure system, including the
investment in the development of technical infrastructure of the industrial zone
and investment in the development of social infrastructure in the industrial zone
According to the contents of investment activities to develop
infrastructure of the industrial zone, including investment in development of

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transport infrastructure, investment in development of water supply and
drainage infrastructure, investment in development of infrastructure to invest in
the development of infrastructure for information and communication, to invest
in the development of infrastructure for the laborers, to invest in the
development of infrastructure public services and other infrastructure
development According to the subject of the investment, we can allocate the
subject of infrastructure development including two main subjects: public and
private.
Assessment criteria include the results indicator and the efficiency of
investment in the development of industrial zone infrastructure
2.2. Attracting investment in industrial zones
2.2.1. The concept of attracting investment in industrial zones
The thesis uses the concept of attracting investment in the development
of production and business in the industrial zone (referred to as attracting
investment into the industrial zone) as follows: "Attracting investment in the
industrial zone is a set of actions and policies aimed at increase the
attractiveness of industrial parks, stimulate investors to invest in business in
industrial zones "
2.2.2. Some tools used in the investment attraction in the Industrial Park:
The author examines the tools: Planning, Planning, Administrative Tools,
Economic Instruments, Investment Promotion, other tools
2.2.3. The indicators to evaluate the results and efficiency of attracting
investment into industrial parks include indicators for evaluating results and
effectiveness.
2.3. Impact of investment to develop infrastructure of industrial zones to
attract investment in industrial zones
2.3.1. Views on the impact of investment in the development of industrial
park infrastructure to attract investment in industrial zones
In this study, the author considers: "The impact of investment in

infrastructure development to attract investment in IZs is the effect of the
investment in the infrastructure development of the IZ. Investing in the IZ is
represented by the indicators representing the attraction of investment into the
industrial zones. "Investment in the development of infrastructure of the IZ
creates the infrastructure system of the IZ, the infrastructure system of the IZ
will Impact on attracting investment in IZ. Accordingly, the author studied the
impact of investment in infrastructure development to attract investment in
industrial zones in all three phases of investment preparation, implementation
investment and operate the investment results with different measurement
criteria.


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Cyclical investment
activities

Criteria represent
investment attraction

Investment
preparation

Implementation of
investment

Operating and
investment results

Decision to invest in
industrial zone

Results of
attracting capital
into the industrial

Satisfaction of
investors in IPs

Figure 2.2: The investment cycle and criteria represent attract investment in
industrial zones
2.3.1. Impacts of investment and development of industrial zone
infrastructure to attract investment in industrial zones
Production efficiency
Investment in
infrastructure
development of
the industrial zone

Cost
Competitiveness

Attract investment
in industrial zones

Risk

Figure 2.3: Impact channels of investment to develop infrastructure of
industrial zones to attract investment in industrial zones
Mechanism of impact of infrastructure development investment is
researched through channels including effective business channel, cost channel,

competitive channel and risk channel as above.
2.4 Experiences on the impact of investment and development of industrial
park infrastructure to attract investment in industrial zones around the
world and some localities in Vietnam
The study authors from Taiwan and Malaysia and the two localities in Da
Nang and Binh Duong have drawn lessons for Binh Dinh province

CHAPTER 3: RESEARCH METHODOLOGY AND RESEARCH
MODEL
3.1. Research Process
The research process is modeled as follows:


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Research issues; Research objectives;
Research Questions

Research Overview
Basis Rationale
Collect data from Management

Secondary data

Board of Economic Zone,
Department of Planning and
Investment,
Infrastructure
companies and other sources
Analyzing the actual situation of investment in developing

industrial zones, attracting investment into industrial zones,
analyzing the impact of investment in developing
infrastructure of industrial zones to attract investment in
industrial zones in Binh Dinh province

Primary data

Surveying investors inside
and outside the industrial
zones in Binh Dinh Province

Quantitative research results on the impact of
investment and development of infrastructure
to attract investment industrial park in the
industrial zone in Binh Dinh province

Recommendations and solutions

MODEL 1: Model of Impact Assessment of Infrastructure Development Investment to
attract investment in the decisive aspect of investing in industrial zones
Investment and development of
technical infrastructure
Investment in development of social
infrastructure
Cost of infrastructure use
Management and support of local
government

Ngu n nhân l c

Attracting investment in industrial
zones
The decision to invest in industrial
zones

Human Resources

Advantages of the investment sector

Features of investors
Policies to attract investment

MODEL 2: Model of impact assessment of investment in infrastructure
development of industrial zones to attract investment into industrial zones in
terms of attracting investment into industrial zones and the level of satisfaction
of investors in IPs.


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Investment and development of technical
infrastructure in industrial zones
Investment in social infrastructure
development of the industrial zone
Investment policy
Management and support of local
government
Ngu n nhân l c
Human Resources

Attracting investment in industrial zones
Investment decisions, results of attracting,
Satisfaction level

Advantages of the investment sector
Cost of infrastructure use

Features of investors

3.2.1. The variables of the model and how to measure
3.2.1.1. Control variable: the author uses the characteristics of the investor is
the size of labor and area of land rent with the sample model is the investor
inside the industrial park and the scale of investment capital, the scale of labor
and the area rented by the model with the model of investors inside and outside
the IP.
3.2.1.2. The independent variables: The independent variables and statistical
criteria were statistically summed as follows
Table 3.1: Criteria for measuring factors for investment in development of
technical infrastructure and investment in social infrastructure
development
SCALE
Investment in developing the technical infrastructure in industrial zones
1
Convenient transportation infrastructure
2
Power supply system is stable
3
Water supply and drainage system is stable
4
The system of green trees is well invested

5
Favorable communication
6
Waste treatment systems are well invested
Investment in social infrastructure development of the industrial zone
1
Cafeteria systems for employees are well invested
2
Investment infrastructure meets demand
3
The school system meets the educational needs of the children of
employees and investors
4
The entertainment system satisfies the demand
Human Resources
Labor quality meets the requirements of the investor
Labor resources abundant
Highly disciplined labor
Ability to acquire and apply technology of good labor
Easily recruit good local managers

SIGN
HTKT
HTKT1
HTKT2
HTKT3
HTKT4
HTKT5
HTKT6
HTXH

HTXH1
HTXH2
HTXH3
HTXH4
NNL
NNL1
NNL2
NNL3
NNL4
NNL5


16
SCALE
The cost of cheap labor
Investment policy
Local investment incentive policies are reasonable
Legal documents are quickly deployed to investors
Clear tax system
Simple, quick administrative procedures
Management and support of local government
Local leaders are available to assist investors
Local authorities have good support mechanisms for investors
The questions and reflections of the business are always answered
satisfactorily
Qualifications, skills and attitudes of good managers
Advantages of the investment sector
Easy access to the inputs
Supporting industries
Favorable market

Favorable geographical location
Cost of infrastructure use
The price of communication services is reasonable
Electricity price, water price, reasonable freight
Reasonable rent
Waste disposal costs reasonable

SIGN
NNL6
CSDT
CSDT1
CSDT2
CSDT3
CSDT4
CQ P
CQ P1
CQ P2
CQ P3
CQ P4
LT T
LT T1
LT T2
LT T3
LT T4
CPHT
CPHT1
CPHT2
CPHT3
CPHT4

Source: Compiled by author
3.2.1.3. The dependent variable
Table 3.7: The measurement criteria to attract investment in industrial zones
SCALE ATTRACTING INVESTMENTS IN IZ
Decision to invest in industrial zone
No investment in IPs
Invest in IPs
Results of investment attraction in IZ
Total investment made
Satisfaction of investors in IPs
The industrial park meets my expectations
I am satisfied with the investment infrastructure of the IP
I will continue to invest in local industrial zones
I will introduce this local IP to other investors
Overall, I feel satisfied when investing in the IP

SIGN
QD
0
1
KQ
VTH
MHL
MHL1
MHL2
MHL3
MHL4
MHL5

Source: Compiled by author

3.2.2. Research hypothesis
Hypothesis 1 (H1): Investment in developing the technical infrastructure
has a positive impact on the decision to invest in industrial zones
Hypothesis 2 (H2): Social investment has a positive effect on the
decision to invest in the IZ


17
Hypothesis 5 (H5): Investment in developing the technical infrastructure
IPs has positive impact to the satisfaction of investors
Hypothesis 6 (H6): Investment in development of social infrastructure
IPs has positive impact to the satisfaction of investors:
Hypothesis 3 (H3): Investment in developing the technical infrastructure
IPs has positive impact to attract investment results in IZ
Hypothesis 4 (H4): Investment in development of social infrastructure in
industrial zones has a positive impact to attract investment results in IZ
3.3. Data collection methods
Both methods of collecting secondary data source, the source of primary
data through surveys, surveys, expert interviews, statistics, etc…
3.4. Statistical Data Analysis
Method of statistical analysis description, method of synthesis, analysis,
comparative surveys, interviewing experts, methods of factor analysis to
discover (EFA), the method of regression analysis Multivariate T-Test Method
CHAPTER 4: THE IMPACT OF INVESTMENT INVESTMENT IN
INFRASTRUCTURE DEVELOPMENT OF INDUSTRIAL ZONES TO
ATTRACT INVESTMENT IN INDUSTRIAL ZONES IN BINH DINH
PROVINCE

4.1. Situation of investment in infrastructure development of industrial
zones in Binh Dinh province

4.1.1. Overview of industrial zones in Binh Dinh Province
Currently, Binh Dinh province has formed 8 IPs as follows:
Table 4.1: The Industrial Zone in Binh Dinh province
Industrial park
Phu Tai
Long An
Nhon Hoa stage 1
Binh Nghi
Hoa Hoi
Cat Trinh

Area (ha)
345,8
117,7
154,4
228
265
368,1

Area of industrial land
for lease (ha)
246
100,4
147
148,4
185,5
232,63

Area of IP has
rented (ha)

221,8
80,4
143
-

Source: Compiled from reports of Management Board of Binh Dinh's
Economic Zone
4.1.2. Capital and investment capital for infrastructure development of
industrial parks in Binh Dinh province


18
Policies on investment capital, methods of raising capital for investment in
development of industrial zones are diverse, from many channels and open.
However, until now investment capital for development of industrial zones in
the province to mobilize only from 2 main sources: budget (central and local)
and funding of infrastructure investment. In the period of 2011-2015, the
investment capital for infrastructure development in industrial parks in Binh
Dinh province has experienced fluctuations over the years both in terms of
registered capital and implemented capital with specific figures below.
Table 4.2: Investment capital for development of infrastructure in
accumulative industrial zones in the period of 2010 - 2015
Unit: million VND
2010
2011
2012
2013
2014
2015
Subscription

1397.4
956.5 1093.9 1515.6 1515.3 1515.3
Current Capital
231.961 272.9 299.84 452.36 488.14 507.96
Current capital /
16.59
28.53 28.53
27.41
32.21
33.52
Register (%)
Source: Compiled from reports of Management Board of Binh Dinh Economic
Zone
4.1.3. Contents of investment to develop infrastructure of industrial zones in
Binh Dinh province
Including the contents of investment in development of transport infrastructure
of the IZ, investment in the development of energy infrastructure, investment in
the development of water supply and drainage infrastructure, investment in the
development of environmental infrastructure, investment in the development of
information and communication infrastructure, investment in development of
housing infrastructure for laborers, investment in development of public
infrastructure and services
4.1.4. A number of assessments on investment in developing infrastructure
systems in industrial parks in Binh Dinh
Including some parameters evaluated on the results and performance of
investment activities in infrastructure development of industrial zones in Binh
Dinh province in 2015 and evaluation of the investors surveyed.
4.2. Current situation of attracting investment in the industrial park in Binh
Dinh province
4.2.1. Some tools to attract investment in the industrial park in the province of

Binh Dinh: The tools include: planning, investment promotion, administrative
tools and economic instruments and other tools
4.2.2. Results of investment attraction in industrial zones in Binh Dinh province


19
Table 4.14: Scale of investment capital in Binh Dinh Industrial Zones
Unit: VND billion
Standard

2010

2011

2012

2013

Current Capital

1.982,49 2.455

2.995

4.651,37 5.560,37 6.846

Subscription

4.595,33 5.733,73 6.775,14 28.504

29.210,9 30.333

V n / V n đ ng ký (%)

43,14

19,0

42,81

42,2

16,31

2014

2015

22,56

Source: Compiled from the reports of the Economic Zone Management Board
of Binh Dinh Province
Along with the formation and development of industrial zones,
investment capital attracted to industrial zones in Binh Dinh province has
increased continuously in recent years. There are also results drawn by capital
and investment partners
4.2.3. Analysis of factors influencing investment attraction in industrial
zones in Binh Dinh province
To analyze the qualitative factors that impact on attracting investment in
the industrial park based on statistical authors describe the appreciation of

investors inside and outside IPs IPs on these factors. Simultaneously, the author
combines analytical reviews, comments of experts to make conclusions. At the
same time the authors also compared the difference between the rating of the
investors inside and outside Industrial Zone Industrial Park on the factors
affecting the attraction of investment in industrial zones.
4.3. Impact of investment to develop infrastructure of industrial zones to
attract investment in industrial zones in Binh Dinh province.
4.3.1. Impact of investment to develop infrastructure of industrial zones to
attract investment in industrial zones in Binh Dinh province by attracting
The author studies the impact of investment in infrastructure
development to attract investment in IZs based on the results attracted in the
province of Binh Dinh on three aspects: Comparing and analyzing the scale of
investment capital to develop the infrastructure of the industrial zone and


20
investment capital attracted to the industrial zones operating in the area;
Examining the difference in registered capital of internal secondary investors
and outside IP investors; Testing the difference invested implementation of
secondary investors inside and outside investors IZ
4.3.2. The impact of investment in infrastructure development of the IZ
contributes to increase the efficiency of production and business activities of
investors.
Using the infrastructure system of the IP together with the advantages of
the IP has helped businesses improve their production efficiency. To evaluate
this impact authors offer some analysis and comparison of the results of
production activities of the enterprise business in the industrial park along with
their comments on the impact of this. These data have proved to be somewhat
effective results and business production of active investors in industrial zones
in Binh Dinh province. We also see the positive impact of operational

infrastructure IPs to produce business results of enterprises through business
indicators and comparisons with the local.
4.3.3. Investment in infrastructure development of the industrial zone
contributes to reducing the production and business costs for investors
As well as numerous studies have demonstrated the theoretical analysis
of the role of investment in developing infrastructure in production costs IPs to
business investors
Illustration based on the analysis of the following: Comparing the cost of
using the infrastructure inside and outside the industrial zone in Binh Dinh
province, Comparing the difference in the cost of infrastructure use by
investors inside and outside IPs through accreditation T - test, Comparing some
other costs when investing inside and outside industrial zones, Evaluation of
investors in the industrial park on the cost of infrastructure in industrial zones
4.3.4. Investment in infrastructure development of industrial parks
contributes to increase the competitiveness of enterprises in industrial parks


21

Review by investors
100

ánh giá by
c ainvestors
nhà đ u t
Review

50

0

Không đ ng ý

Disagree

Bình th

Normal ng

ng ý
Agree

Hoàn toàn đ ng
Completely
agree

ý

Figure 4.5: Investor's assessment of the impact of industrial park
infrastructure investment on the competitive advantage of investors
Unit: %
4.3.5. Investmenting in the infrastructure development contributes to reduce
the risk for investors
Based on the information below, we can see some issues of risk
mitigation if investors use the infrastructure system in the industrial zones and
enjoy the rules, policies, security assurance Also, avoid policy risks, there is no
guarantee of investment in infrastructure and management agencies, ...
4.4. Evaluating the impact of investment in the development of industrial
park infrastructure to attract investment in industrial zones in Binh Dinh
province.
4.4.1. Estimating the impact of investment in infrastructure development of

industrial zones to the decision to invest in industrial parks
Logistic regression performed with variable QD under 8 independent
variables and control variables on 3 obtained regression results table below:
Table 4 .32: Results of Logistic regression model
Variables in the Equation
B
S.E.
Wald
df
Sig.
Exp(B)

Step
1a

DTT

0,016

0,026

0,380

1

0,538

1,016

LD

0,002

0,002

1,039

1

0,308

1,002

VTH

0,050

0,016

9,381

1

0,002

1,051

DTHTKT

2.233

0,383

34,024

1

0,000

9,328

NNLA

-0,018

0,313

0,003

1

0,953

0,982

NNLB

-0,250

0,339

0,545

1

0,460

0,779

CSDT

-0,359

0,259

1,915

1

0,166

0,699

CPHT

1,176

0,243

23,332

1

0,000

3,240

CQDP

-0,576

0,225

6,581

1

0,010

0,562

LTDT

-0,323

0,371

0,758

1

0,384

0,724

DTHTXH

-0,398

0,354

1,262

1

0,261

0,672


22
Constant

-6,420

2,391

7,212

1

0,007

0,002

X= 0 + 1 DTT + 2 LD + 3 VTH + 4DTHTKT + 5 NNLA +
7CSDT+ 8CPHT + 9CQDP + 10LTDT + 11DTHTXH +e (*)

6

NNLB +

Based on the significance level (Sig.) Of the Wald test, four independent
variables were introduced into the Sig model. < 0.05. These independent
variables are statistically significant at the 5% level. In other words, the
variables: capital performance, investment in technical infrastructure
development, cost of infrastructure use, management and support of local
authorities is influencing the decision to invest in IPs. According to the results
we have seen, investment in developing the technical infrastructure has a
positive impact on the investment decisions of investors as expected by the
author with the hypothesis H1. However, investment in the development of
social infrastructure is not significant for the investment decision in the IPs of
investors. Thus, the H2 hypothesis is not satisfied.
4.4.2. Estimating the impact of investment in the development of industrial
park infrastructure to the results of attracting investment in industrial parks
and the level of satisfaction of investors in industrial zones.
The results of the regression analysis are as follows:
Table 4 .37: Regression results with dependent variable are investment capital

Model

1

Unstandardized
Coefficients
B
Std. Error

(Constant)
DTT
LD
NNLA
NNLB
CSDT
LTDT
CPHT
CQDP
HTXH
HTKT

-79,042
,154
,030
3,070
3,852
13,461
3,171
2,392
-,113
1,101

4,445

18,806
,045
,009
2,266
2,255
1,953
2,960
1,702
2,411
2,707
2,400

Standardized
Coefficients
Beta
,224
,213
,095
,117
,466
,070
,088
-,003
,027
,119

t

Sig.

VIF

-4,203
3,456
3,405
1,355
1,708
6,892
1,071
1,405
-,047
,407
1,852

,000
,001
,001
,178
,090
,000
,286
,162
,963
,685
,066

1,112
1,043

1,301
1,249
1,218
1,133
1,055
1,107
1,134
1.096

a. Dependent Variable: VTH
Source: Compiled from the results of the research
General regression models were estimated as follows:
VTH =

0

8CQDP+

+

1DTT

+

9HTXH+

2LD

+

10HTKT

3

NNLA +

4NNLB

+

5CSDT

+

6LTDT

+

7CPHT

+

+ ei

Variable investment and development technical infrastructure IPs with
10 = 4.4445 represents investment in developing the technical infrastructure to


23
positively impact investment results. This means that the H3 hypothesis is

satisfied with the meaning that when the investor evaluates the investment in
the development of technical infrastructure of the IZ by 1 unit, the investment
Variable investment in developing social infrastructure IPs have no meaning in
the model so theoretical H4 is not satisfied.Using the results of the preliminary
evaluation of the scale, we also have 8 independent variables and 2 control
variables for inclusion in the regression analysis model with the dependent
variable is the satisfaction level of the investor (MHL) . General regression
models were estimated as follows:
MHL = 0 + 1DTT + 2LD + 3 NNLA + 4NNLB + 5CSDT + 6LTDT
+ 7CPHT + 8CQDP + 9HTXH + 10HTKT + ei
According to the regression results, investment in infrastructure
development of industrial zones has a positive impact to the satisfaction of
investors. The investment in technical infrastructure development with =
0.182 demonstrates the investment in technical infrastructure development that
is conducive to the level of satisfaction of investors. It means that when the
investor evaluates the investment in the development of technical infrastructure
of an industrial zone increases by 1 unit, the satisfaction level increases by
0.183 units with the reliability  = 0.1.
Model

Unstandardized

Standardized

Coefficients

Coefficients

B
(Constant)

,930

,420

-,001

,001

,000

NNLA

Sig.

VIF

Beta
2,213

,028

-,043

-,615

,540

1,112

,000

-,058

-,853

,395

1,043

-,052

,051

-,079

-1,036

,302

1,301

NNLB

,037

,050

,055

,737

,463

1,249

CSDT

,008

,044

,013

,177

,860

1,218

LTDT

,164

,066

,177

2,478

,014

1,133

CPHT

,029

,038

,053

,766

,445

1,055

CQDP

,111

,054

,146

2,066

,041

1,107

HTXH

,306

,060

,361

5,065

,000

1,134

HTKT

,182

,054

,238

3,398

,001

1,096

DTT
LD

1

Std. Error

t

a. Dependent Variable: MHL
Source: Compiled from the results of the research
4.5. General assessment of the impact of investment and development of
industrial zone infrastructure to attract investment in industrial zones in
Binh Dinh province.
4.5.1. Positive aspects


24

positive impact on the decision to invest in the IZ, the results of investment
attraction and the level of satisfaction of investors.
impact on the level of satisfaction of investors in the industrial zone.
efficiency of production and business of investors
costs
competitive advantage
ture development of the IZ contributes to reducing
costs
4.5.2. Existence and Causes
Surface exists
Investment activity in infrastructure development IZ no synchronization

between technical infrastructure and social infrastructure, the infrastructure
between the inside and outside industrial zones. The issue of mobilizing
resources and attracting qualified infrastructure investors to invest in the
development of IP infrastructure remains a problem for the Binh Dinh
authorities. The industries attracting investment in industrial zones in Binh
Dinh also overlap, attracting policies are not synchronous, lack of cohesion.
Attracted to the industrial zones in the province of Binh Dinh period 2010 2015 mainly investors in the country with the majority of the enterprises of
small and medium-scale investment is not large, use the medium technology.
Investors who decide to invest in IPs face many administrative procedures with
infrastructure investors and state management agencies, thus causing
difficulties for investors. Infrastructure investors have not promoted the
connection between secondary and state investors and have not provided good
support to investors in administrative procedures. Investment promotion
activities in the IP are rather faint, the promotion of environmental investment
in Binh Dinh IP is limited. Lack of cohesion, mutual cooperation between the
industrial zones, enterprises in industrial zones in the province and linking
development with other localities in the region in investment activities
developed infrastructure industrial zones and attract investment in industrial
zones.
Cause of the shortcomings
The quality of planning for IP development is not good
The capacity of some infrastructure investors is limited.


25
Central and local budgets for investment in infrastructure development of
IPs are still limited. Mechanisms and policies to mobilize investment capital are
not diversified.
The investment in the development of infrastructure outside industrial
zone planning depends on local development, so sometimes no synchronization

between the investment and development of infrastructure inside and outside
the industrial park.
Policies to attract investment by local inconsistent
The policy of encouraging investment in building houses and social
works for employees is not attractive enough for infrastructure investors to
welcome the Party to this issue.
Investors focus on infrastructure investment in developing technical
infrastructure that has not focused on social infrastructures. Besides, the agency
has not managed closely in the planning and implementation of the investment
plan for the implementation of infrastructure investment in developing social
infrastructure serving employees.
Chapter 5: ORIENTATIONS AND SOLUTIONS FOR
INVESTMENT IN DEVELOPMENT OF INDUSTRIAL PARK
INFRASTRUCTURE IN ORDER TO ATTRACT MORE INVESTMENT
IN INDUSTRIAL PARKS IN BINH DINH PROVINCE.
5.1. Oriented investment activity in infrastructure development of
industrial zones and attract investment into the industrial park
5.2. Some solutions for investment in infrastructure development of
industrial zones to promote investment in industrial zones in the province
of Binh Dinh
5.2.1. Group of solution for management agencies of industrial zones in the
province of Binh Dinh
(1) To improve and enhance the quality of the planning development of
industrial parks and the detailed planning of investment in infrastructure
development of industrial zones.
(2) Solutions to expand capital flow and create motivation for investment
in development of industrial zone infrastructure
(3) Solutions to increase attracting foreign investors to invest in
infrastructure development in industrial zones.
(4) Solutions for support and management of development investment,

management and operation of industrial zone infrastructure.
(5) Solutions to attract investment in production and business investment
in industrial zones
5.2.2. Some solutions for investors to develop industrial infrastructure in
Binh Dinh province