Danang Hi-Tech Park
Dinh Vu

Local Economy

Last updated: Friday, October 19, 2018


Companion to Enterprises

Posted: Friday, December 01, 2017

Endowed with many advantages plus a dynamic and enabling government, an open business environment, and effective policy support mechanism, Binh Thuan province has become an attractive investment destination. Mr Le Tuan Phong, Director of Binh Thuan Planning and Investment Department, shared with Vietnam Business Forum about the breakthrough solutions of the province in the effort to improve the investment environment. Truong Thanh - Minh Hung report.

What are the specific advantages of Binh Thuan in attracting investment? How has the province attracted investment in recent years, especially foreign investment?
With the coastline of 192 km, Binh Thuan has many beautiful beaches, pristine white sand hills, fresh climate; many beautiful and attractive natural areas such as Ham Tien - Mui Ne, Quy Thuan - Ke Ga, Ta Cu and Bau Trang. There are also famous cultural and historical sites in the province. Mui Ne is the national nature reserve; Phan Thiet city is a tourist city and Phu Quy Island is a national tourism point.

Besides abundant tourism potential, Binh Thuan also has many mineral resources with nearly 100 mines such as peat, gold, tin, tungsten, lead, zinc, sapphire, quartz, clay and bentonite clay. In Binh Thuan province, the titanium reserves are about 599 million tonnes, accounting for 92 per cent of Vietnam's titanium ore reserves.

The characteristics and natural conditions of climate and land are very favourable for Binh Thuan to develop agriculture towards high technology. In addition, the province has an agricultural land area of over 270,000 hectares, 283 irrigation works with the design capacity of 58,704 hectares. Dragon fruit is a famous specialty, cultivated on 27,031 hectares, with an output of over 518,000 tonnes; rubber plantation covers 42,131 ha, yielding over 50,000 tonnes. In terms of seafood, Binh Thuan is one of the three big fishing grounds of the whole country (52,000 km2), seafood reserve is about 240,000 tonnes and an annual output is over 200,000 tonnes. In addition, the province has more than 4,100 hectares of water surface suitable for developing aquaculture of all kinds.

In the past, Binh Thuan had a harsh climate, causing difficulties for local economic development. However, these disadvantages have now become the province's advantages in developing clean energy. This specific strength has helped Binh Thuan attract more investment projects on solar power and wind power, contributing to the development of local economy.

On the basis of exploiting and promoting all advantages, the investment in Binh Thuan has flourished. Especially, in 2016, the province attracted 115 investment projects with a total registered capital of VND28,235 billion, up 3.3 times compared with 2015; of which there are 8 FDI projects with a total investment of about US$2.3 million.

Which mechanisms and policies has the province offered to support enterprises and investors, especially young enterprises, investing in the province?
To promote the achievements and better exploit advantages and available resources, Binh Thuan always accelerates administrative reforms, and implements the inter-agency one-stop-shop mechanism to improve the investment environment. The province also regularly reviews and revises regulations relating to business investment environment, especially procedures on investment approval, business registration, access to land, access to capital, construction permit, and tax. This helps to save time and money for enterprises, creating favourable conditions to encourage enterprises to invest in production and business. On May 3, 2017, the provincial People's Committee issued Decision 1155/ QD-UBND regulating the receipt and handling of administrative procedures under the one-door mechanism at the provincial People's Committee Office.

To support investors, Binh Thuan province focuses on implementing preferential policies for investors at the maximum level according to the regulations of the State. The province has developed a number of mechanisms and policies to attract specific investment to the industrial parks. In addition to enjoying the corporate income tax and import tax as stipulated by the central government, the People's Committee of Binh Thuan province has also issued a number of policies to support and attract investment, such as Decision 06/2012/QD-UBND dated December 3, 2012 promulgating preferential policies for investment in construction of low-income housing in urban areas, housing for workers in industrial parks and Decision 64/2009/QD-UBND dated September 18, 2009 of People's Committee of Binh Thuan province promulgating the policy of supporting investment in construction of technical infrastructure of industrial parks and industrial complexes in the area. For young enterprises, the province has also offered many training programmes on human resources according to Decree 56/2009/ND-CP dated June 30, 2009 by the Government. In addition, Binh Thuan Provincial People's Committee has issued Decision 646/QD-UBND dated March 13, 2017 regulating the level of support for organisations and enterprises under the programme on improving productivity and quality of enterprises in Binh Thuan province in the period 2016-2020.

In addition to attractive investment incentives, the province is also interested in supporting investors in the process of implementing the project; regularly organises direct dialogues and promptly resolves and removes difficulties and problems of investors. All the above efforts are intended to express the desire to welcome many domestic and foreign investors who are interested in exploring investment opportunities and implementing investment projects in the Binh Thuan province.

How has the province improved reform of administrative procedures and quality of services?
The Department of Planning and Investment regularly reviews, updates and advises the provincial People's Committee on the promulgation of the standardisation of administrative procedures under the management of the Department of Planning and Investment. Besides, the Department gives advice on amendment, supplementation or abolishment of documents which are no longer suitable. We also coordinate with other departments and localities to review, amend and submit to the provincial People's Committee for promulgation regulations on order, procedures and responsibility for dealing with investment procedures for non-capital investment projects in accordance with the new situation as stated in Decision 07/2017/QD- UBND dated February 22, 2017.

In 2017, under the jurisdiction of the Department, the Department has reviewed and shortened the processing time of 7 administrative procedures by 3-5 days: 4 procedures of business registration, 2 procedures of investment process, and one procedure in bidding, selection of contractors. We are drafting a revised regulation on the implementation of a mechanism linking with the conditional business lines in the province.

In the coming years, what areas will Binh Thuan prioritise to attract investment?
The province will prioritise the investment in hi-tech agriculture (building 2 hi-tech agricultural production zones, building hi-tech agricultural production areas for dragon fruit (3,500 hectares), rice seed (450 hectares), high-quality rice area (93,000 hectares), safe vegetables (80 hectares) to develop hi-tech agriculture; tourism sector (calling for investment in the Hoa Thang- Hoa Phu coastal area of 1,353 hecatres, Bau Trang area of 547 hectares), industrial sector (calling for investment in Phan Thiet Industrial Park second phrase, Ham Kiem 1& 2 Industrial Park, Tuy Phong Industrial Park, attracting investment and construction of wind power plants, and aquaculture.

Binh Thuan always welcomes and creates the most favourable conditions for investors to deploy projects in the area. At the same time, it is committed that there will be no obstacle to administrative procedures. In order to increase the attractiveness of the investment environment, the province shall direct the branches and levels to actively accompany and solve difficulties and problems in investment, production and business activities and continue to strongly improve the business investment environment, accelerate the reform of administrative procedures to best exploit internal resources and attract maximum external resources for development investment, to step by step build Binh Thuan into a reliable and attractive destination of investors.

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