Hanoi's authorities broke ground for the construction of the Phu Yen craft village industrial cluster in Phu Xuyen District on March 30.

The groundbreaking ceremony of the Phu Yen craft village industrial cluster project. Photo: Hanoimoi Newspaper

The Phu Yen artisan village industrial cluster in Gie Ha Village, Phu Yen Commune, covers 10.5ha and was funded by Chi Cuong Construction Investment Consultant Joint Stock Company for VND200.3 billion (US$8.5 million).

Speaking at the groundbreaking ceremony, Nguyen Xuan Thanh, Secretary of the Phu Xuyen District Party Committee, stated that the industrial cluster's establishment aims to relocate local production facilities in the fields of leather and footwear, garment, lacquer, services for industrial clusters, and other industries away from residential areas, thereby reducing the environmental pollution.

According to Nguyen Manh Quyen, Vice Chairman of the municipal People's Committee, Phu Yen is home to 154 handicraft communities and thousands of home enterprises. The two industrial clusters are currently being constructed to satisfy the high demand for production space in the craft village.

The city will soon finish and operationalize the technological infrastructure for the Phu Yen craft village industrial cluster and other 42 industrial clusters, according to Plan No. 97 of the City on the Management and Investment of Industrial Clusters in 2023.

 "The industrial clusters are expected to attract investment capital in the locality as well as create a breakthrough in the development of the city's industrial production, handicrafts, and craft villages toward sustainability," he said.

Quyen urged local governments to make it easier for contractors to speed up the production process, particularly by simplifying administrative processes.

Following the groundbreaking ceremony, Nguyen Van Phong, Deputy Secretary of the city Party Committee, Nguyen Manh Quyen, Vice Chairman of the city People's Committee, and representatives of leaders of departments, agencies, and Phu Xuyen District visited some production facilities and craft villages in the area.

Hanoi intends to create five to ten industrial clusters this year.

The city has ten industrial areas totaling 1,300 hectares in size. Nine of them are active and nearly full, while the Hanoi South Ancillary Industry Park is under construction. In 2022, these parks made $8.1 billion in revenue, up 4.1% from the previous year, with combined exports estimated at $5.1 billion and imports valued at $4.3 billion.

In 2023, Hanoi hopes to attract $400 million in foreign direct investment to its industrial parks and production zones, a 20% rise over the previous year.

According to the Hanoi Export Processing and Industrial Zones Authority, there are 711 valid projects in the local industrial parks, with 307 from foreign investors and $6.3 billion in registered capital, and 404 from domestic sources. The projects are valued at VND19 trillion ($803.5 million) and employ roughly 166,000 people.