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Local Economy

Last updated: Thursday, June 21, 2018


Eyeing to Draw Giant, Powerful Investors Worldwide

Posted: Friday, May 05, 2017

With its scenic landscapes, strategic location and dynamic administration, Khanh Hoa province has exerted a strong pull on domestic and foreign investors. Mr Tran Minh Hai, Deputy Director of the Khanh Hoa Department of Planning and Investment, said that in order to create breakthroughs in investment attraction, the province is seeking to draw powerful and experienced investors and multinationals to create a pulling effect on other investors to do business and establish broad partnership. Quoc Hung reports.

The recent time has witnessed global and domestic economic volatility. In that context, how has the province attracted investment capital?
In recent years, global and regional economic fluctuations have substantially affected investment attraction in the country, and Khanh Hoa province was no exception. Anticipating that trend, the Provincial Party Committee and the Provincial People’s Committee directed branches and localities to carry out specific solutions, including supporting enterprises to deal with difficulties and implement their projects, effectuating governmental directions on business and investment support in the tough time of the economy, like investment incentives, tax breaks and land clearance. Therefore, over the past years, the province has attracted a considerable number of investors. Specifically, Khanh Hoa licensed 582 projects with a total registered capital of VND181,929 billion (US$8 billion) in the 2010-2016 period, including 95 foreign direct investment (FDI) projects with US$633.2 million. The province now has over 15,000 companies, with the number rising 10-15 per cent annually.

With the support of the province and the effort of enterprises and investors, more and more projects have been put into effective operation in the past years, for example major projects invested by Vingroup Group, Havana Hotel, The Costa, Amiana and some other projects in Bai Dai Tourist Area, and have driven the province’s development by generating more budget incomes, creating new jobs, protecting the environment and security, and embellishing the urban face. This is also the foundation for the province to shape a better investment climate to draw more investors to Khanh Hoa province.

What has helped Khanh Hoa to overcome difficulties to obtain the impressive investment results as above?
In addition to geographic location advantages as being the centre of central coastal provinces and the eastern gateway for the Central Highlands, and having a convenient transportation system, particularly its proximity to international shipping routes, Khanh Hoa is also blessed with many scenic landscapes and globally famous bays. Khanh Hoa people are friendly, hospitable and industrious. The province completed the socioeconomic development master plan to ensure scientific, reliable outcomes and utilise natural and social conditions, build synchronous infrastructure systems like traffic, electricity, water supply and communication. In the coming time, the province will complete important projects like an interconnected transportation system to ease investors’ access to Khanh Hoa province.

In the 2010-2015 period, the province also had effective policies on investment attraction and socioeconomic development, for instance, resolutions of the Provincial Party Committee on development of three key economic areas of Nha Trang, Cam Ranh and Van Phong. These resolutions have been assessed and translated into specific actions. The Provincial People's Committee has issued some sector-specific incentive policies on investment projects.

In addition, Khanh Hoa province has focused on administrative reform in all areas, particularly simplifying administrative procedures, reducing the time required to settle administrative procedures (by at least 30 per cent), supporting and addressing administrative procedures for enterprises and investors under the principle that the government truly serves enterprises and their development is also the development of the province.

Unsynchronised infrastructure from locality to locality and narrowing land fund for fresh projects are considered barriers to investment inflows. What solution has the province taken to address these issues?
In order to channel investment flows into disadvantaged areas, Khanh Hoa province has issued many practical incentive policies, particularly the Resolution of the Provincial People's Council on socioeconomic development programme for mountainous areas, and agricultural programme in combination with the government-backed Programme 135 on infrastructure investment support and production development support for poor communes and rural areas. The province annually allocates State budget for building traffic, power, water and information infrastructure for such localities to ensure socioeconomic development and raise livelihoods for people, as well as attract investment capital for such localities. Every year, Khanh Hoa province composes and issues the list of investment projects in need of investment capital, including projects in poor areas, for investors to weigh up.

To create available land fund for new projects, the province has formulated and promulgated local industrial zone planning. Specifically, in addition to Van Phong Economic Zone, Khanh Hoa has four large-scale industrial parks, with one being operational, one under construction, and two in the blueprint. The province also has seven smaller industrial complexes (average individual area of 45-50 ha), including three being in operation with 48 tenants and two under construction. Industrial zones are planned in rural and mountainous areas with favourable land spaces and traffic conditions.

Project quality and investor capacity are important in investment attraction. How has Khanh Hoa province focused on these?
I think that project quality and investor capacity are important factors to make sure that licensed projects are carried out on schedule and their quality is assured. To this effect, Khanh Hoa province compiled and issued Decision 1899/QD-UBND dated August 6, 2013 on deposits for projects in Northern Cam Ranh Tourism Peninsula. Accordingly, the deposit for each project is VND100 billion.

As for projects in Nha Trang City and other localities, the Provincial People’s Council issued Resolution 09/NQ-HDND dated April 10, 2014 on results of supervising implementation of non-State investment projects in Nha Trang City. Therefore, five investment projects have gone into operation and 3-4 projects are expected to be completed in 2017. Other projects will be implemented in the province. At present, the province attaches much importance to project quality and investor capacity and carefully studies investment and relevant laws such as capital pooling and investor performance through statutory financial report and financial capacity proofs. At the same time, the province requires investors to place deposits and submit profess commitments. The province directs departments, branches and localities to keep track of projects, urge investors to stick to their registered schedule commitments and support them to tackle emerging difficulties and obstacles.

What are the province’s investment attraction orientations for the coming time?
Khanh Hoa will continue to accelerate investment promotion and attract foreign capital to unlock marine economic potential in three key economic zones. In particular, the province will focus on drawing investment capital into locally advantageous fields and projects like infrastructure development in Van Phong Economic Zone, industrial zones, seaports, shipyards, supporting industries, renewable energy and clean energy. It will attract new investment projects to fill up industrial zones, build urban infrastructure and develop tourism services. In addition, stepping up cooperation in education and training, particularly scientific and technological training, is also a priority.

The province will target powerful and experienced investors and multinational corporations to create a pulling effect on other investors to do business and establish broad partnerships. Khanh Hoa will focus on key markets like Japan, South Korea, Singapore, the United States and EU countries.

The province will create favourable conditions for investors in Khanh Hoa, and protect the environment while attracting investment capital.


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