Last updated: Wednesday, February 22, 2017
Stronger FDI Inflows Motivate Rapid and Sustainable GrowthPosted: Thursday, October 27, 2016
Thai Nguyen province has constantly improved the investment environment to enhance convenience, openness and transparency in order to attract high-tech and large-scaled projects from transnational corporations. Stepping up administrative reform, building infrastructure, strengthening trade promotion and attracting foreign direct investment (FDI) are the top priorities of Thai Nguyen province. Thus, many foreign investors have chosen Thai Nguyen as the destination for their projects. FDI capital has become an important capital source for the province to boost up its GDP growth and accelerate its industrialised economic restructuring. The following is an interview with Mr Hoang Thai Cuong, Director of the Department of Planning and Investment of Thai Nguyen province. Ngo San reports.
Could you talk about the success of Thai Nguyen province in the past time and FDI attraction orientations in the coming time?
Thai Nguyen is said to make most use of its advantages and make new breakthroughs to attract FDI capital. The province ranked 44 out of 63 provinces and cities in licensed FDI value by the end of 2012. But, after two projects of Samsung Group were licensed, the province climbed to No. 17 position in December 2013. And in 2014, Samsung Electronics Vietnam Thai Nguyen Ltd invested in the second phase of its Samsung Thai Nguyen High-Tech Complex in Thai Nguyen province. By September 30, 2016, the province licensed 116 FDI projects with a total registered capital of US$7.185 billion, ranked 10th out of 63 provinces and cities.
New FDI projects have contributed significantly to local economic infrastructure development. Many large-scale projects engaged in manufacturing, high-tech, mining and tourism industries have become driving forces of economic growth and restructuring, boosted export growth, restructured exports, increased revenues and created jobs. They have also created ripple effects on capital, technology, governance level, labour level and business performances.
With its modern industrial development strategy, Thai Nguyen province will give priority to attracting investment capital to develop industry and develop service, tourism and trade. Industrially, the province will draw investment capital for supporting industries for mechanical engineering, electricity - electronics, chemicals, mining, downstream mineral processing, infrastructure investment, warehousing, transport, logistics, human resource training and other related services, high-quality tourism products and services.
It is quite clear that foreign investors are disbursing more FDI capital into Thai Nguyen province. Could you explain why?
Thai Nguyen province has achieved impressive successes in investment attraction because it holds peculiar advantages that other localities do not have. First of all, the province lies in a fast-growing dynamic economic zone - a magnet to FDI capital, has a favourable traffic system which is well connected with airports and seaports, and has relatively completed industrial parks.
In addition, the Provincial People's Committee closely directs branches and levels to apply consistent solutions to create an open investment environment and speed up administrative reform towards simplicity and singularity. When they arrive in the province to explore investment opportunities, they will be directed and served by the Department of Planning and Investment. They will be assisted to complete investment and business procedures such as business establishment registration and investment certificate at only one administrative agency. Apart from measures to improve the investment climate, reviewing, inspecting and monitoring investment projects is seen as a key task. Besides, Thai Nguyen province is keen on promoting investment, defining target investors and organising workshops to provide information for target investors.
In order to assist investors to accelerate the progress of project implementation and disburse their registered capital, the Department of Planning and Investment has advised the provincial government to implement consistent solutions like supporting land compensation and site clearance to hand investment spaces to investors at the earliest, building infrastructure to the fence of their investment projects, especially roads connecting to their projects, meeting with investors to timely capture information about their difficulties to take best settlement measures. The province will further reform and simplify administrative procedures relating to investment registration and business establishment registration to ease business preparatory works for investors.
To boost ease of doing business in the province, the provincial government and relevant departments have made great efforts to reform administrative procedures, apply the single window mechanism and support investors to carry out their projects in the most favourable manner. Every week, the Chairman of the Provincial People’s Committee holds a regular meeting with investors to learn about their emerging issues. The cross-sector support board, led by a vice chairman of the Provincial People’s Committee, assembles every two weeks to help investors to tackle their problems arising from project implementation. Moreover, at its monthly briefings, the Provincial People’s Committee directs relevant departments and district governments to intensify project examination and propose solutions to emerging issues.
2016 is the first year the province carries out the medium-term plan from 2016 to 2020. Would you tell us investment attraction orientations and measures of Thai Nguyen province in the next five years?
In the 2016 - 2020 period, Thai Nguyen will continue to step up sector and local planning to provide clear investment attraction orientations for investors and match local potential and advantages.
In general, Thai Nguyen province will selectively attract investment projects based on its planning. The province will target at big companies having advanced technologies and assuring environmental protection standards. Besides, the province will encourage investment in agricultural and woodwork processing. While increasing investment capital for worker training for key economic sectors, industrial zones and rural areas, Thai Nguyen province has also built up a highly qualified workforce for key economic sectors.
Regarding partnership orientation, the province will focus on attracting investors with good strategies, market expansion plans and long-term investment commitments; investors using advanced technologies, creating added values, utilising local competitive edges, generating jobs. The investment will draw investors from traditional markets like Japan and South Korea, and look to potential partners such as Singapore, Thailand, Taiwan, Europe and the United States.
To implement the above directions, Thai Nguyen will perform consistent solutions, particularly:
First, stepping up planning and planning management, reviewing and modifying planning, approving and announcing infrastructure planning to 2020 to lay the basis for drawing investment capital to develop infrastructure and strengthening planning management
Second, focusing investment on connectivity infrastructure such as roads, water supply and drainage, power supply and communications systems for investors
Third, quickening site clearance to provide business premises for investors
Fourth, further reforming administrative procedures, raising the provincial competitiveness index (PCI), perfecting legal documents, building investment mechanisms and policies
Fifth, enhancing human resources training and retraining, especially technical workers, to meet high demands of modern industry
With its potential and investment, Thai Nguyen province has great opportunities to draw more investment capital. The province is committed to providing all favourable conditions for domestic and international investors.