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Local Economy

Last updated: Wednesday, September 19, 2018

 

Thai Nguyen Builds Favourable Business Environment

Posted: Tuesday, June 26, 2018


Thai Nguyen province has adopted many attractive mechanisms and policies, actively removed administrative obstacles, cleared the ground for investment projects and improved personnel to create a favourable business environment to draw necessary resources to unlock local potential and advantages in recent years. Vietnam Business Forum Magazine has an interview with Mr Hoang Thai Cuong, Director of the Thai Nguyen Department of Planning and Investment.

What would you say about the investment attraction of Thai Nguyen province in the current period?
At present, the province has 869 projects, including 740 domestic projects with a total capital of VND146 trillion; 129 FDI projects with the total registered capital of over US$7.2 billion, equivalent to US$158 trillion. The total number of enterprises in the province is 6,166 of which 5,944 are domestic enterprises with the registered capital of VND78,117 billion and 121 foreign-invested enterprises with the total registered capital of over VND10,800 billion. Major investors include Samsung Electronics Vietnam; Vingroup; Masan Group; Xuan Truong Construction Corporation, etc. The local infrastructure has been upgraded, with a focus on key projects, major traffic routes, urban and rural infrastructure including the Hanoi - Thai Nguyen Highway, the National Route No.3, the Thai Nguyen - Cho Moi (Bac Kan province). The socio-economic infrastructure in rural areas such as roads, electricity networks and schools has been significantly upgraded; cultural life, health, education, security, etc have also been improved; investment attraction and investment promotion have been promoted. The average economic growth rate over the 2015 - 2017 period is over 14 per cent; GRDP is VND68 million/person/year; annual budget revenue increases by more than 25 per cent.

The attraction of many investment projects and the rapid development of start-ups, the establishment of enterprises, investment projects has played an important role in the business development. Socio-economic restructuring, job creation and income for labourers has contributed to improving the urban face of the province, increasing the budget revenue.



What do you think about project deployment process and administrative reform results in investment over the past years?
In the past years, the entire political system of Thai Nguyen province has firmly carried out a number of measures to accelerate administrative reform, especially in tax, customs, insurance, construction permits, land and investment procedures. The Provincial People’s Committee has implemented the single-window mechanism in reception and delivery of administrative procedure settlement results at nearly 100 per cent administrative agencies.

The province also invested in building data transmission networks dedicated to Party and State agencies at all levels; constructing the e-mail system (mail.thainguyen.gov.vn) for 100 per cent of agencies and units to apply information technology to administrative operation; and deploying the computer system connected to the broadband internet to publicise administrative procedures and public services.

Besides, the Department of Culture, Sports and Tourism worked with relevant bodies to review, study and shorten the time of business registration, improve service quality, and support enterprises in business registration, certification and practice license granting. The province signed a cooperation agreement with the Vietnam Post Corporation on receipt of dossiers and delivery of administrative procedure settlement results via public postal services to ease conditions for people and enterprises. Up to now, administrative procedures concerning business starting, fiscal revenue and expenditure, social and health insurance settlement, and conditional business licensing have been simplified. Unnecessary and irrational administrative procedures are eradicated. The time required for business establishment has been reduced to less than three days, on average, after receiving valid documents; 90 per cent of procedures are settled electronically; and the time needed to assess and approve investment decisions is 25 days at most.

On January 19, 2016, the Thai Nguyen Provincial People’s Committee issued a Decision approving the Thai Nguyen Public Administration Reform Project in 2016 - 2020, with tasks focused on reducing cumbersome administrative procedures to facilitate businesses and people to deal with paperwork with authorities. In addition, the province held meetings seeking to enhance measures for higher Public Administration Reform Index, Vietnam Provincial Governance and Public Administration Performance Index as well as public satisfaction with the service of administrative agencies at the grassroots level in the province. Every year, Thai Nguyen delivers questionnaires on citizen and business satisfaction with administrative procedures.

To date, administrative procedures concerning business start-up, tax collection and payment, settlement of social insurance and health insurance, and conditional business licensing have been simplified to eradicate overlapping, complicated and unreasonable ones.



At the Thai Nguyen Investment Promotion Conference 2018, in what fields, locations and projects will Thai Nguyen province call investment capital?
To effectively unlock local potential and enhance local competitive advantages, Thai Nguyen province has invited domestic and foreign investors to study and invest in the following fields and localities:

1. Industry: The top task is investing in industrial zone infrastructure operations. The province invites infrastructure investors for the 105-ha Quyet Thang Hi-Tech Industrial Park, 8 km from the heart of Thai Nguyen City, and 11 industrial clusters covering 283.5 ha across the province. In addition, the province also attracts supporting industry projects to increase the localisation rate of products made by Samsung Group and calls investors to invest in electronic, software, high-quality mechanical engineering and garment supporting industries.

2. Agriculture and forestry: The province will give priority to investment in high-quality tea processing for export in Dai Tu, Phu Luong, Dong Hy, and Thai Nguyen City. It will develop tea-growing areas with ecological tourism. Furthermore, it will encourage fruit processing investment projects and forest product cab projects to exploit 110,000 ha of forests and 15,000 ha of fruit trees.

3. Ecological tourism and leisure infrastructure: Thai Nguyen will appeal investors to invest in infrastructure development in the Nui Coc National Tourist Area, and projects in the eastern part of Tam Dao National Park that stretches from Phuc Thuan - Pho Yen to Dai Tu, and other tourist sites there.

4. Urban development: The province will develop 1,500-ha West Thai Nguyen City urban area, 8,009-ha Yen Binh industrial, agricultural and service complex which comprises 700-ha Yen Binh Green Industrial Park, 970-ha Yen Binh Smart Urban Area, 750-ha high-tech park and 550-ha urban area.

5. In addition, Thai Nguyen will attract investors to study traffic infrastructure investment projects in various forms such as BT (build - transfer) and BOT (build - operate - transfer); general trade and service centres, healthcare, education and other fields in accordance with the province’s socioeconomic development plan.

Based on this foundation, the Provincial People’s Committee issued the list of 65 projects seeking investment capital: Industry (15 projects), agriculture (19 projects), trade, culture, sports and tourism (12 projects), transport (15 projects) and health and education (4 projects). However, this list is only for guidance and reference. Investors may still select other fields and projects not included in this list.

At the Thai Nguyen Investment Promotion Conference 2018, the provincial government will make commitments to businesses and investors. As Director of the Department of Planning and Investment, do you have any message to enterprises and investors?
Without doubt, the investment environment of Thai Nguyen province has constantly improved. In addition to economic development, the province attaches great importance to investing in technical infrastructure and human resources. Particularly, local leaders always stand side by side with investors, provide most favourable conditions for them to do business, and ensure the shortest time to complete the procedures. For Thai Nguyen, the success of business is the success of the province, and the benefit of business is the immediate and long-term goal of the province.

Thank you very much!








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