Restoring Order in Investment Attraction

10:16:18 AM | 12/1/2016

Kien Giang is blessed with enormous natural potential resting in the sea, islands, minerals, plains, forests and mountains. In addition to favourable natural conditions for economic development, Kien Giang is one of four provinces in the Mekong Delta key economic zone with a coastal corridor linked to Cambodia and Thailand via the Ha Tien International Border Gate, where the province sees a lot of business opportunities. In addition, its Phu Quoc International Airport and deepwater seaports will connect the Mekong Delta region with countries in the region and in the world. However, to promote these advantages and to create motivations for rapid and sustainable development, Kien Giang needs to have competitive advantages from natural resources and geographic location where the business community and investors play a very important and decisive role to enhance competitiveness, turn local potential advantages into high-value goods and services and create unique values for Kien Giang.
 
In 2013, domestic and international economic slowdown negatively impacted investment flows and business operations of the business community and investors. However, the Provincial Party Committee and the Provincial People’s Committee directed all branches and localities to apply effective measures to support companies to deal with production and business difficulties, support the market and settle bad debts according to Resolution 02/NQ-CP; and focused on mobilising resources to remove existing difficulties and obstacles to promote the progress of key investment projects to improve the local infrastructure system. Key projects include roads and bridges in Rach Gia City, Cai Lon and Cai Be bridges in the southern coastal corridor, An Hoa Bridge, Kinh Nhanh Bridge in Rach Gia City. The province also upgraded and repaired important traffic routes like National Road 61, National Road 80, Provincial Road 964, and roads and bridges leading to Giang Thanh Border Gate. Kien Giang also invested in irrigation system and power grid. (Particularly, the submarine electrical cable system from mainland Ha Tien City to Phu Quoc Island was completed and put into operation in 2014, and the power line from Hon Dat district to Hon Tre Island in Kien Hai district was invested in 2014.)
 
Kien Giang now has five industrial parks (Thanh Loc, Thuan Yen, Xeo Ro, Tac Cau and Kien Luong II) with a total area of 769.34 ha and 12 industrial complexes with total area of 549.11 ha (five industrial complexes with a total area of 167.96 ha will be invested in the first phase and seven complexes with 381.15 ha will be developed in the second phase). With cooperation invested and completed, industrial zones have attracted big investors like a VND1,400 billion MDF wood production plant, a VND150 billion garment factory, a VND1,200 billion footwear production, and VND600 billion Saigon brewery. Furthermore, the province also took advantage of State funds, and domestic and foreign capital sources to invest in infrastructure, rural development and poverty reduction, while enhancing investment for industrial zones and tourist sites and developing services to develop the economy.
 
To date, Kien Giang has licensed nearly 672 projects with a total registered capital of over VND301,619 billion, which registered to rent 31,846.4 ha of land and invest in fishery, seafood processing, agricultural product, mining and mineral processing, infrastructure investment, tourism, real estate and other industries. The effective performance of these investment projects has contributed significantly to economic development, inflation control and social security.
 
However, Kien Giang province faced certain difficulties and challenges in attracting investment capital for development to tap local potential and advantages. To unlock its potential and advantages, the province mobilised resources for development and restored order in investment attraction. Kien Giang actively reformed administrative procedures, created an open transparent, equitable and favourable investment - business environment for enterprises and investors through the one-door investment mechanism applied at the Department of Planning and Investment, the Phu Quoc Development Investment Management Board, and the Kien Giang Maritime Economic Development Management Board to shorten the time and reduce costs, eliminate unnecessary regulations and simplify administrative procedures to build the trust and confidence of investors and enterprises when carrying out investment procedures in Kien Giang province. To speed up infrastructure construction in border gate economic zones, tourist resorts, industrial zones, commercial centres, seaports and river ports, apart from revoking inappropriate plans and projects, the province reviewed construction plans and socioeconomic infrastructure projects to make necessary changes to facilitate enterprises and investors to access and seek opportunities. Moreover, the province tightened supervision over the progress of investment projects and revoked sluggish projects to provide opportunities for new investors. In 2013, the Kien Giang Provincial People’s Committee directed the establishment of an interdisciplinary inspection panel to inspect non-State-funded projects, including foreign-invested projects. The panel was assigned to monitor and detect difficulties and obstacles of enterprises to introduce effective solutions to support them to overcome such nuisances; urge belated or disobeyed projects, and settle violation cases. After inspection reports from the panel, on March 5, 2014, the Provincial People’s Committee approved the schedule extension of 22 investment projects with a total registered investment capital of VND14,340 billion, which registered 945 ha of land in combination and rescinded investment certificates of 34 projects valued VND4,269 billion, which registered to hire 707 ha.
 
To limit financially incapable and inexperienced investors and provide a foundation for selecting investors, inspecting and monitoring implemented projects, the Provincial People’s Committee issued Decision 2618/QD-UBND dated December 18, 2012 (currently abolished) on measures to ensure the implementation of local investment projects (except Phu Quoc) and issued Decision 1923/QD-UBND on the issuance of investment criteria in Phu Quoc Island (applicable to Phu Quoc Island).
 
Kien Giang province is committed to advancing strong administrative procedure reform, and supporting and accompanying businesses and investors. The province always sees the success of the business community and investors as the success of the province.
 
Source: Kien Giang Department of Planning and Investment