Actively Increasing Attractiveness of Investment Environment

11:03:32 PM | 1/6/2015

Along with the positive achievements in economic development, the 18 year development journey of Binh Phuoc province has witnessed newfound maturity and breakthroughs in investment attraction. Not chasing after figures or attracting investment at any cost, Binh Phuoc carefully selects proper investment projects. According to Director of Planning and Investment Department of Binh Phuoc Vu Thanh Nam, although many businesses have come to seek investment opportunities in Binh Phuoc, the province has given priority to investment projects which cause less pollution, use high technology, consume less power and hire employees with qualifications found in the province.
Can you introduce some outstanding achievements that Binh Phuoc has achieved in attracting investment, particularly FDI, until now?
Eighteen years after the re-establishment of the province, thanks to available advantages and potential, investment attraction of Binh Phuoc has achieved certain results. At the time of re-establishment of the province, there were only 181 enterprises registered with capital of VND35 billion. Now these figures have reached 3,984 (20 times) and VND29 trillion (800 times), respectively.
In terms of attracting foreign investment, initially there was only one project, with registered capital of US$20.58 million; now the numbers have increased to 116 projects with registered capital of more than US$1 billion, of which 84 projects are operating effectively.
To improve the efficiency of investment attraction into Binh Phuoc province, how has the province paid attention to administrative reform, creating a favourable legal framework, synchronous infrastructure development, especially technical infrastructure development, training and improving the quality of human resources?
Binh Phuoc province has identified that to attract investment effectively, administrative procedure reform to create a favourable legal framework, develop infrastructure and train human resources is the key factor. Therefore, over the past few years, this issue has received much attention from the province and been promoted effectively.
In terms of infrastructure investment, due to limited local budgets which have not been able to assure synchronous investment for technical infrastructure, over the past time, we've enlisted the assistance from the central budget, ODA capital, and investment capital by enterprises in the form of BT, BOT to invest in development of infrastructure for transportation, electricity, water, and communications. Particularly, from Congress VIII (2005 - 2010) to Congress IX (2010 - 2015), the province has built and deployed the breakthrough program on investment in infrastructure, with a focus on transportation, electricity, water supply, telecommunications and industrial park infrastructure.
In terms of human resources development, although Binh Phuoc has abundant human resources with more than 600,000 people of working age, the proportion of trained workers is not high. Recently the province has built the Human Resources Development Program, which focuses on training human resources with professional qualifications. Besides, we focus on upgrading, expanding and investing equipment for vocational training centres, secondary schools and vocational colleges in the province. We also combine developing local human resources and attracting high-quality human resources from other provinces to work permanently in the area.
As for the reform of administrative procedures to create a favourable legal framework, since the re-establishment of the province until now, to create a favourable legal framework for investors, Binh Phuoc has developed investment incentives and encouragement policies, which are regularly adjusted to fit changing reality. Especially to create an open investment environment, the reform of administrative procedures is always a focus of the province, which is shown through: regular review and cutting of unnecessary administrative procedure, strict implementation of the transparent listing of process and time of administrative procedures for investors on the website to create favourable conditions for investors to understand and follow the investment procedures, initial implementation of electronic One-Stop-Shop in resolving investment procedures. So far, the province has shortened administrative procedure time even more than the time stipulated by the Government.
Attracting investors towards the screening and selection of the best investors is the general trend of the localities in the country to raise investment efficiency. Is this the same for Binh Phuoc Province? How does the province deal with project investors who intentionally delay the implementation of their projects?
Not standing outside of the general trend of the provinces and cities nationwide, over the past years, investment projects of Binh Phuoc have always been chosen carefully. Priority is given to investment projects which cause less pollution, use less power and use employees with qualifications equal to those in the province. For projects on which investors delay implementation or lack the ability to deploy, the province absolutely withdraws and chooses other investors which have the capacity to continue implementing. Specifically, in the past time, we have recovered large projects such as Saigon - Binh Phuoc Industrial Park project (Chon Thanh district), investment project in infrastructure construction of Tan Thanh Residential and service area (Dong Xoai Town), and Thuan Phu service warehouse's technical infrastructure construction project (Dong Phu district).
Among the investors in Binh Phuoc in the past 5 years, South Korea, Taiwan and Japan have invested the most, and are operating effectively. Can you please tell me more about this success?
Up to the present time, Binh Phuoc has attracted 61 investment projects from South Korea with the total capital of US$ 441 million (accounting for 53 percent of the total projects and 44 percent of the total attracted investment capital) and 18 investment projects from Taiwan with registered capital of US$ 180 million (accounting for 16 percent of the total projects and 18 percent of the total attracted investment capital). The province has been able to attract only 3 Japanese projects. Most of these projects are operating effectively. This achievement is thanks to the fact that in the past time the province has successfully planned the Minh Hung - Han Quoc industrial park to attract Korean investors. This industrial park's infrastructure is owned by South Korea investor and has so far attracted 40 projects of Korean investors with the occupancy rate of nearly 90 percent.
In the future, to continue to be a destination for investors from South Korea, Taiwan and Japan, the province will regularly meet with investors to discuss and address any problems. The province will also plan commerce- industry - service areas, and planned area to develop economics and ecotourism to attract investors from South Korea, Taiwan and Japan to invest in production and business in the province.
In the coming period, which field's attraction will Binh Phuoc give priority to? To get ready to welcome investors and diversify forms of investment, what is the key mission the province should focus on?
In 2015 and the following years, Binh Phuoc will call for investment in projects under the PPP model, focus on attracting projects producing agro-forestry products of local strengths such as processing products from rubber, cashew nuts, pepper, fruits, livestock and poultry; industrial projects, especially supporting industry projects, and encourage socialization in the fields of health, education, environment and sports.
To get ready to welcome investors in the above-mentioned areas, the most important task is to invest in infrastructure, develop human resource and promote administrative reform. Additionally, the province will also implement good planning, both public land planning and sectoral planning, and accelerate infrastructure investment progress in border gate industrial clusters and economic zones so that they become the base for investment attraction.