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Last updated: Monday, November 19, 2018


FDI Attraction: Many Positive Moves

Posted: Tuesday, November 21, 2017

Over the years, An Giang Province has always been determined to increase the attractiveness of the investment environment, working to enhance solutions to strongly improve the investment environment in a friendly way and boost public administration reform to facilitate enterprises. These positive moves have brought new nuances to the picture of investment attraction into the province. To learn more about the local investment climate, Vietnam Business Forum has an interview with Mr Le Van Phuoc, Director of An Giang Department of Planning and Investment. Duy Anh reports.

Can you outline the picture of FDI attraction in An Giang over the years, as well as the important roles and contributions of FDI enterprises in industrial and socio-economic development in the province?
Up to now, An Giang province has attracted 69 FDI projects with a total registered capital of US$599,318,037; Of which, there are 37 FDI projects in force with a total registered capital of US$262,657,552, and a total actual investment capital of US$129,701,374 (accounting for 49.38 per cent of total registered capital). Thus, in the past 30 years, the province has, on the average, attracted 2.3 projects per year with a total capital of US$19.98 million. During the first ten years (1988-1997), 13 projects with a total registered capital of US$27,416,188 were attracted; In the period of 1998 and 2008, six projects with a total investment capital of US$85,580,000 were implemented; compared to the first 10 years, the number of projects reduced by 7 projects but the capital amount showed increases of more than three times (US$58,163,812). In the period of 2009-2017, An Giang has attracted 50 projects with a total registered capital of US$486,321,849 (this is also the strongest phase of FDI attraction in terms of the number of projects and capital).

Although the attraction of FDI projects in An Giang province is still below the potential of the province, the FDI sector has contributed positively to local socio-economic development. In economic terms, FDI has been an important supplementary source of capital for the whole investment capita, contributing to the development investment and economic growth of An Giang province. Of which, from 2006-2010, the total development investment capital of the FDI sector was VND1,043 billion, accounting for 1.19 per cent of the total development investment capital of the whole society; In the period of 2011-2015, the figure was VND1,069 billion, accounting for 0.72 per cent; Particularly in 2016, this figure is VND451 billion, accounting for 1.88 per cent. FDI projects have casted positive effects to other economic sectors in the province; the performance of FDI enterprises is improved through the number of enterprises increasing investment capital, expanding production scale. The FDI sector has created nearly 9,000 jobs, contributing significantly to the stabilisation of social security in the area.

Could you tell us about the local investment incentives?
An Giang province has determined that improvement of investment & business environment and competitiveness will create favourable environment for enterprises, especially FDI enterprises to seek investment opportunities and do business in the province, contributing to the realisation of the socio-economic development objectives, to create jobs and enhance the people's life in the local area. With this important nature, the An Giang People's Committee has actively developed programmes and plans to improve the investment & business environment, and competitiveness to create a favourable environment for enterprises such as Plan 91/KH-UBND dated February 27, 2017 implementing Resolution 19-2017/NQ-CP of the Government; Action Plan 377/CTr-UBND dated July 14, 2016 implementing Resolution 35/NQ-CP of the Government; Decision 2000/QD-UBND dated July 15, 2016 promulgating the action plan to raise the PCI of An Giang province in 2016-2020, implementing the Resolution of the 10th provincial Party Congress (the 2015 – 2020 term).

To exploit all potentials and strengths, An Giang province has been carrying out step by step investment with the focus on promoting land use efficiency and standing prepared to receive domestic and foreign investment capital. Regarding the mechanism and policy, all FDI investors in the province are entitled to preferential mechanisms and policies such as corporate income tax, export tax, value added tax, exemption and reduction of land rent. In addition, in order to speed up the reform of administrative procedures towards minimising the dossiers, procedures and time for settlement of investment registration procedures, Decision 32/2016/QD-UBND was issued on June 30, 2016 regulating the coordination in processing dossiers and investment procedures under the inter-agency single window mechanism in An Giang province, thereby shortening the time for settlement of investment decision-making procedures under the authority of the Chairman of the Provincial People's Committee, which is in 16 days (instead of 35 days in former regulations) and the time for registration of new establishment, adjustment and supplementation of the enterprise registration certificate within one working day. At the same time, the province also has signed a memorandum of understanding with Misa Joint Stock Company to support start-up enterprises with the desire to "donate accounting software for newly established enterprises", thereby creating all favourable conditions for investors.

The current international economic integration will be a great opportunity for An Giang to attract FDI, making a leap in socio-economic development. What is An Giang’s FDI attraction effort focused on from now to 2020? What are specific FDI attraction targets set for this period?
According to the 5-year socio-economic development plan from 2016-2020, in order to reach the target of an average annual economic growth of 7 per cent, the province needs to mobilise a total social investment capital of about VND148 trillion. Estimated mobilisation of foreign capital is about 30 - 35 per cent of the total. In the structure of externally mobilised capital, FDI capital is very important. From the local actual situation in recent years to the attraction of foreign investment and socio-economic development in the period 2016-2020, to promote FDI attraction, to make a leap for socio-economic development in the period from now to 2020, An Giang will focus on attracting qualified FDI investment in favour of high technology projects, supporting industry projects and intensive investment projects in technology renovation, environment friendly but not forgetting the job-handling factor. In addition, the province encourages FDI enterprises to produce export goods and at the same time exploit the domestic market to replace imports. To attract foreign investment into industrial parks, functional zones and border-gate economic zones of the province in order to ensure the development according to the planning; reject projects with low socio-economic efficiency and projects that have harmful effects on the environment.

For specific targets, An Giang will annually attract 5-10 projects with an investment capital of about US$200 million averagely, accounting for 10-14 per cent of the total investment capital of the society. Total export turnover of 2016-2020 on average will reach US$1 million per year, accounting for 1.1 per cent of total export turnover of the province.

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