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Dinh Vu

Local Economy

Last updated: Friday, May 25, 2018


Creating Favourable, Effective Business Environment

Posted: Wednesday, March 01, 2017

In 2016, Bac Giang province was among the Top 10 recipients of foreign direct investment (FDI) capital in the country. This outcome partly showed the province’s firm determination to accelerate administrative reform, improving the business environment and enhancing competitiveness. Vietnam Business Forum has an interview with Mr Trinh Huu Thang, Director of the Department of Planning and Investment of Bac Giang province, on this issue. Ngo Khuyen reports.

What do you think about investment attraction results of Bac Giang province in 2016?
In 2016, the province attached much important to attracting investment capital. The Provincial Party Committee issued Resolution 73-NQ/TU dated May 6, 2016 on improving the local investment climate in 2016-2020 and the Provincial People’s Committee promulgated the Plan 128/KH- UBND dated June 30, 2016 to carry out this resolution. The Provincial People’s Committee also directed concerned bodies to focus on building preferential mechanisms and policies to facilitate investment. Thus, the value of investment capital increased many folds from previous years. The value of domestic direct investment (DDI) doubled that in 2015 while the value of fresh FDI climbed 4.6 folds, making Bac Giang province a Top 10 recipient of new and additional investment capital in the country. The province attracted 172 investment projects in the first 11 months of 2016, including 128 DDI projects valued VND12,389.7 billion (more than 3 times over 2015) and 44 FDI projects worth US$911.76 million. The projects allowed 24 projects to add US$70.3 million. Needless to say, 2016 is the breakthrough year in investment attraction of Bac Giang province.

The focus on mobilising investment resources for infrastructure development, particularly transportation infrastructure connecting Bac Giang province with the neighbourhoods has brought new advantages to Bac Giang?
With the support of central authorities, Bac Giang has always concentrated investment resources for transport infrastructure development to connect with other localities, including four-lane Hanoi - Bac Giang Highway, upgraded Bac Giang - Lang Son Road, expanded National Road 17 (formerly Provincial Highway 398), and upgraded National Road 18 to Hai Phong and Thai Nguyen. Provincial roads such as 293 and 295B were also invested and upgraded to connect other regions in the province.
Better transport infrastructure has enabled Bac Giang province to create new competitive advantages and facilitated industrial zones (mainly along Hanoi - Bac Giang Highway) to connect with the centre of Hanoi, Noi Bai Airport, Hai Phong Port, Lang Son Border Gate while making Bac Giang province a supplier of foods and other essential goods for Hanoi. The trade value between Bac Giang province and Hanoi has increased year after year. Better livelihoods have also helped the province to draw talents from Hanoi, Bac Ninh and Hai Duong. And, this has also created another magnet to investors. This is also a foundation for the province to develop spiritual tourism into a spearhead economic sector. Better traffic connectivity will help attract more tourists to the province.

Could you please talk about the notable investment attraction orientations in the 2016-2020 period?
In the 2016-2020 period, the province set a target of drawing VND103 trillion of DDI and FDI capital, accounting for 45.1 per cent of total social investment capital (VND63 trillion of DDI and VND40 trillion of FDI). To accomplish this goal, the province introduced an investment promotion programme for the 2016 - 2020 period with clear investment attraction orientations.

On priority areas: Large-scale projects with competitive products and participation in global value chains of transnational corporations; supporting industries; projects shifting from outsourcing to manufacturing; financial market development projects invested by big, prestigious investors; and small and medium projects fitting specific localities.

Industry: Attracting following projects into industrial zones: Industrial manufacturing and mechanical engineering; electronic refrigeration; manufacturing and assembly of informatics products, computer equipment, software, electronic components, telecom devices and equipment; production of automobile and motorcycle components; supporting industries for garment and textile, mechanical, electronics and leather and footwear industries.

Infrastructure - urban:
- Transportation: Developing the section of Bac Giang - Lang Son Highway in the province; restoring National Road 31 and National Road 37 (BOT investment form); building Dong Son Bridge, A Lu Bridge, a bridge linking Hiep Hoa district with Soc Son district, Hanoi (PPP investment form); attracting investment in some river ports such as Dong Son Port; A Lu Port and Quang Chau Port.

- Industrial zone infrastructure: Expanding 100 ha in Van Trung Industrial Park; completing infrastructure in Song Khe - Noi Hoang Industrial Park in 2017; building an industrial park in Tang Tien commune, Viet Yen district; building Chau Minh - Mai Dinh Industrial Park in Hiep Hoa district; constructing industrial clusters: Xuan An (Luc Ngan district), Yen Lu (Yen Dung district) and Ha Thinh (Hiep Hoa district).

- Urban: Building new urban areas in Bac Giang City, Viet Yen, Yen Dung, Luc Ngan, Luc Nam and Hiep Hoa districts

Trade and service:
Building infrastructure for an international logistics centre in Bac Giang City to gradually turn the province into a centre of regional logistics services; constructing wholesale markets, retail markets and warehousing systems in Bac Giang City and districts; building integrated services zones in Tan Dinh commune; building supermarket chains, wholesale chains and retail chains.

Tourism: Developing tourism into a driving service field after 2020, focusing on developing three products: Cultural - spiritual tourism, historical - cultural tourism and ecological - recreational tourism; forming tourist attractions along Provincial Road 293: Suoi Mo Tourist Area in Luc Nam district; developing Tay Yen Tu into a key tourist destination in the province; early completing Truc Lam Phuong Hoang Zen Monastery, Yen Dung Resort and Golf Project; attracting investment into Nham Bien Mountain to set up resorts and amusement parks.

Agriculture: Giving priority to high-tech applied production fields; processing and preserving agricultural products to meet domestic consumption and export demands.
On prioritised partners
- DDI projects: Investors from other provinces, large corporations with strong financial resources, modern technology and high governance levels, especially VNR500-certified companies (Top 500 largest companies in Vietnam),

- FDI projects: From successful FDI companies in Vietnam, attracting investors with strong financial resources, high technology and clean technology from Japan, South Korea, the European Union (EU), the United States, India and Israel.

What do you think about administrative reform and business climate improvement in the in the province in recent years?
In recent years, Bac Giang province put a premium on accelerating administrative reform, enhancing competitiveness and bettering the business environment in Bac Giang province, particularly administrative procedures relating to investment. In 2013, the Department of Planning and Investment issued regulations on organisation and operation of investor reception units which received applications and returned results to investors. Accordingly, the single-window unit is responsible for guiding, receiving applications and returning results of administrative procedures two areas: business registration and investment registration outside industrial zones. Investment administrative procedures are publicly, transparently and notified by electronic information portals in the province. Civil servants working in the single-window unit are competent, experienced and professional as they are selected from State bodies. The single window unit helps investors to explore investment opportunities and learn about the order of settling administrative procedures, thus promoting the image and investment environment and enhancing transparency of settling administrative procedures related to business registration and investment registration.

The Bac Giang Public Administrative Centre was established and put into operation in September 2016. The Single-window Unit of the Department of Planning and Investment is a part of this centre. Besides, the Bac Giang Provincial People's Committee directed the construction of criteria for surveying and assessing businesses and investors’ opinions about provincial agencies and district governments in carrying out administrative procedures relating to enterprises and investors in 2016 and widely publicized in the media. In an effort to reform investment administrative procedures, the investment value has increased year after year. In particular, in 2016, Bac Giang province was one of the 10 biggest recipients of FDI in the country.

The Department of Planning and Investment also introduced public administration reform plans in 2017; continued to apply six contents: institutional reform, administrative procedure, organisational apparatus, public personnel, public finance and administrative modernisation. The department clearly assigned tasks and settlement time to every professional division to shape a democratic, clean, strong and modern administration.

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