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Local Economy

Last updated: Friday, October 20, 2017

 

Enhancing FDI Flow Quality and Value

Posted: Friday, August 04, 2017


With efforts to support companies and introduce solutions to create transparent, attractive and reliable investment environment, investment flows, particularly FDI, into Tay Ninh province picked up in the past years. This success is illustrated in the following conversation with Mr Bui Cong Son, Director of the Tay Ninh Department of Planning and Investment. Hoang Lam reports.

In 2016, Tay Ninh province rolled out the “red carpet” policy to draw investment flows, particularly FDI funds. How has this effort been rewarded?
To support local businesses in their operations, Tay Ninh has implemented many measures to reduce administrative procedures and create favourable conditions for licensed investment projects to come into operation quickly.

Investment promotion works are always changed for better results. The province has created best conditions for investors to carry out and operate projects; promptly removed difficulties and problems; provided best public services; and supported existing investors to attract new ones to the province. In addition, Tay Ninh province has actively coordinated with relevant agencies, international organisations and multinational corporations successfully operating in Tay Ninh province to organise investment promotion delegations overseas to actively seek and promote the local image and business investment environment. In 2016, Tay Ninh successfully hosted three investment promotion delegations to India, Japan and South Korea, initially achieved positive results and drew the attention of large investors there.

With the above efforts, investment flows into Tay Ninh province picked up and produced remarkable outcomes. By the end of the first quarter 2017, the province had 682 registered projects (259 FDI projects and 423 domestic projects) with a combined investment value of US$4,449.17 million and VND43,495.8 billion, of which 443 have already gone into production. The accumulated disbursed capital as of March 31, 2017 reached US$2,646.7 million, accounting for 59.4 per cent of the total registered capital (US$4,449.17 million).

Very effective investment attraction has importantly contributed to local socioeconomic development. By the end of the first quarter of 2017, revenue from this activity reached US$516.5 million (68.76 per cent higher than a year ago). Similarly, exports topped US$544.26 million (102.89 per cent higher); imports valued US$379.26 million (138.92 per cent higher) and tax payment amounted US$8.97 million (49 per cent higher). These positive results helped raise its provincial competitiveness index (PCI) to the group of good localities in 2016 (59.66 points in 2015 and 60.14 points in 2016). Particularly, the dynamism of the provincial government and business support services looked up in the year.

What do you think about the performance of the local business community? What policies has the province has adopted to support business development, especially for small and medium enterprises (SMEs) and newly established ones?
By the end of 2016, the province had 4,396 enterprises with a total registered capital of VND40 trillion and US$4.1 billion. In 2016 alone, it had 562 business start-ups with a combined registered capital of VND3,173 billion.

In general, business performance progressed in 2016. Many companies outperformed the industry, expanded operating scales, and significantly contributed to the State Budget. The Provincial People’s Committee and governments at all levels continuously supported them to tackle emerging difficulties and problems in their operations. Accordingly, the time and procedures for business establishment have been reduced thanks to the deployment of the one-stop single-window mechanism. At the same time, the province held several dialogue meetings and business matching programmes to bridge credit institutions with local enterprises.

In the coming time, to further develop the business community, especially small and medium enterprises (SMEs and newly established ones, Tay Ninh will accelerate administrative reform, especially reforming administrative procedures to provide an ideal investment and business environment for enterprises; actively support them to deal with hardships and easily access capital, especially SMEs; and enhance the efficiency of capital mobilisation and use. Tay Ninh province will effectively carry out vocational training and employment support policies; build human resource training networks for SMEs; and effectively implement personnel training support plans for SMEs aligned with annual and five-year socioeconomic development plans of the province. In addition, the province will pay attention to supporting SMEs to upgrade and apply new technologies to gradually enhance their competitiveness. It will intensify the provision of information on business support and market expansion, and improve the efficiency of trade and investment promotion and business support.

In addition to the above solutions, the provincial government always pays heeds to all business opinions and readily accompany the business community in the development process.

Free trade agreements (FTAs) signed by Vietnam will trigger new waves of FDI flows into Vietnam in the coming time. How will Tay Ninh province capture these FDI flows?
Despite a dramatic increase in FDI value in the past time, the result still fails to meet existing potential and strengths. Therefore, Tay Ninh will continue to implement a number of solutions to improve the local investment and business environment. Therefore, Tay Ninh province will continue to mobilise and effectively use investment resources for infrastructure development, especially transport infrastructure. Specifically, the province will raise all investment resources, build a highways linking to Ho Chi Minh City, other provinces in the region and within the province to provide best conditions for investors.

The province will effectively perform the coordination of State management in foreign investment among ministries, branches and localities; focus on reviewing relevant plans to supplement and adjust them in a unified manner and create conducive conditions for investors to register the progress of their projects. In addition, the province will set up help desks to support investors to carry out projects and regularly host tasks with investors to learn about their issues and their aspirations. Then, provincial leaders will have best solutions to assist investors to carry out their projects with the highest outcome.

In this period, Tay Ninh province will give priority to draw FDI projects that register to efficiently use local resources, minerals and land; encourage industrial projects to shift from outsourced production for foreign firms to processing and manufacturing and gradually raise the quality of FDI inflows. While alluring more projects, the quality of projects is also a matter of concern of the province. It encourages projects advanced environment-friendly technologies. We advocate not attracting investment at all costs but integrate FDI inflows with advanced technologies and attract projects that widely spread effects on in socioeconomic development.

A highlight of Tay Ninh's investment attraction orientation is its focus on high-tech agricultural investment to form and develop value chains. At present, more than 10 investors have pledged to spend VND17 trillion on hi-tech agricultural development value chains in Tay Ninh in 2017 - 2020.

Together with smart agriculture, the province concentrates on tapping tourism strengths and sees it as the shortest way for Tay Ninh to make development breakthroughs and keep up its growth momentums with other localities in the southern key economic zone. In the immediate future, the province will announce a list of projects calling for tourism investment and focus on spiritual tourism, eco-tourism and agricultural tourism development.








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