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HCM City pushes polluters out

by Le Hung Vong

HCM CITY — HCM City authorities once again urged entrepreneurs and factory owners guilty of polluting the environment in the inner city to move quickly to suburban areas.

This time, deputy chairman of the People’s Committee Mai Quoc Binh warned companies already in the authorities’ "black book" that any further delay on their part would result in the use of force to accelerate the relocation process.

The city’s Relocation Programme was recently sped up after the Department of Science, Technology and Environment found 32 enterprises and factories in Go Vap, Tan Binh and District 12 heavily contaminating Tham Luong Canal waters with industrial waste.

Offenders like Thanh Cong and Thang Loi Textile companies were revealed to have dumped 14,400cu.m and 3,600cu.m of waste water into the canal, respectively.

Inspections resulted in the People’s Committee of District 12 suspending the operations of My Thinh Weaving and Dyeing Factory and Tan Phu Cuong Co Ltd, until the firms took appropriate measures to treat sewage water.

"We will not tolerate any more enterprises and factories discharging toxic products, causing environmental damage and affecting the lives of people in the city," Binh said.

Fifty-two enterprises and factories listed in the "black book" were scheduled to leave their premises in 2002 and 2003. But, according to the many companies choosing to stay longer, the high cost of relocation is causing delays.

The Relocation Programme has certainly hit the pockets, authorities concluded. Re-settlement implies a big cut back on profits while production is disrupted. Much capital is needed to install new facilities and equipment, and move existing ones.

Binh said the city has designated a 500ha area in Northwest Cu Chi Industrial Park to host polluters from the inner city. By mid-2003, land plots will be transferred to factory owners for them to relocate in the course of the year.

"If they refuse to move, enterprises must either propose ways to curb the environmental problems in existing plants or convert factories to other business purposes," said Binh.

By 2004, another 30,000 enterprises and factories responsible for environmental damage in central HCM City will have to either re-settle or adapt. Authorities will take tougher measures against those who refuse to comply, such as licence withdrawal, operations suspension or legal procedures.

To help companies lower relocation costs and speed up the process, authorities have lessened annual interest rates on loans to 3-4 per cent.

Gratuities from the Environment Pollution Reduction Fund (up to VND500 million per enterprise) will be awarded to those prompt in their move to outer city zones.

Aside from reducing pollution in HCM City, the Relocation Programme may create employment opportunities for suburban residents, paving the way to urban development.

"From now on, licences will no longer be issued to polluting food processing and leather tanning factories in residential areas," Binh said.

Authorities are prepared to undergo the potentially negative affect of the programme on industrial output, which contributes 34 per cent of the city’s GDP, to protect the environment and public health. Hopefully, in the long run, the success of the programme will ease industrial development in the city and ensure a sustainable growth rate.

HCM City will assist re-settled enterprises and factories by providing capital for investment in modern technology, machinery and equipment.

Over the past three years, authorities of District 11 have encouraged 55 factories to move to suburbs; 120 factories have stamped out sources of environmental harm; and 260 enterprises have either switched to more environment-friendly products or suspended operations altogether, according to Vo Thi My, Chairwoman of the district’s People’s Committee.

"The programme has, to some extent, affected revenues and employment plans in the district. But it has also improved the environment situation and thus people’s overall living standards," Mysaid.

She has suggested building "handicraft villages" on the outskirts of HCM City to draw together enterprises and factories re-settling in 13 export processing zones and industrial parks. In addition, a number of small industrial parks will be expanded to accommodate other factories scheduled to move after 2004.

"One of the major current issues is raising awareness of the need to protect the environment among the people and among owners of enterprises and factories which are contributing to the worsening of the environmental situation," said Binh. —VNS