Local Economy

Last updated: Wednesday, May 15, 2019


Catching Investment Flows in Integration Era

Posted: Monday, July 23, 2018

In addition to impressive investment results, Quang Nam province has also received high appreciation from investors, as its Provincial Competitiveness Index (PCI) rankings in 2015, 2016 and 2017 have been among the Top 10 in the country and the Top 2 in the Central Region and the Central Highlands. Mr Dang Phong, Director of Quang Nam Provincial Department of Planning and Investment, said, to attain these proud achievements, the province has actively carried out public administration reform and introduced open policies to dramatically change the perception and approach from administering enterprises to serving them. The province always sees businesses and investors as loyal companions and consultants in economic development. Cong Luan reports.

By tapping and promoting available advantages, how has the province attracted investment capital in general, and FDI capital in particular, in the past time?
When it was split in 1997, Quang Nam province had only more than 100 enterprises with a combined registered capital of less than VND50 billion and most of them were State-owned enterprises (SOEs) and small and medium-sized enterprises (SMEs). Foreign direct investment (FDI) projects were counted at less than 10, with a total investment capital of less than US$20 million. After over 20 years, Quang Nam province has now become an attractive investment destination thanks to its ongoing endeavours.

At present, Quang Nam province is home to 157 FDI projects with a total registered capital of more than US$5.6 billion, of which US$2.5 billion has been disbursed. In 2017, the province licensed 20 projects with US$93.7 million of investment capital. FDI companies paid roughly VND1 trillion of taxes and fees to the State Budget in the year. They are currently hiring over 40,000 workers. They earn US$455.17 million from exports and spend US$372.25 million on imports. The FDI sector has played a significant role in accelerating the economic restructuring, industrialisation and modernisation of the province.

Quang Nam province-based foreign-invested projects such as Victoria Hoi An, The Nam Hai, Inax, Groz Berker, Rieker Shoes and Chu Lai Truong Hai Automobile Complex have achieved very good outcomes and paid a lot to the State coffers. In addition, licensed projects are being implemented gradually to promote socio-economic performance. At the Quang Nam Investment Promotion Conference 2017, provincial leaders handed investment decisions, investment registration certificates and investment agreements to 32 projects with a total pledged capital of over US$15.8 billion. Many commercial banks also vowed to provide loans worth over VND25 trillion (US$1.1 billion) for investors to carry out their projects.

How have leading businesses such as Truong Hai, Suntory-Pespsico, Inax and The Nam Hai played their roles in local investment attraction and economic development? At the Quang Nam Investment Promotion Conference 2017, Prime Minister Nguyen Xuan Phuc also affirmed that Quang Nam needs to have big businesses to function as strong pillars for its economy and create a driving force for economic growth. So, what policies and decisions have you adopted to attract leading corporations?
As known, leading businesses play an enormous role. The voice of businesses investing in Quang Nam province is eloquent evidence for the local investment environment. This is a much better channel than promoting and inviting investors in the traditional way.

Starting as an agriculture-based province, Quang Nam has been presently able to balance its budgetary revenue and expenditure and have a surplus sent to central authorities. The province ranked second in budget revenue and first in investment attraction in the Central Coast and the Central Highlands. This not only reflects the development of a coastal province, but also the appeal of the Quang Nam investment environment made from geographic location to infrastructure system. The remarkable success of many big corporations and investment projects, the presence of large regional and international brands right in Quang Nam are convincing proof.

To do so, Quang Nam has introduced many open policies based on the perception and approach from administering enterprises to serving them. The province always sees businesses and investors as companions and consultants in economic development. Based on the Government's Resolution 19-2016/NQ-CP dated April 28, 2016, the Provincial Party Committee and the Provincial People’s Committee of Quang Nam province took drastic measures to improve the investment and business climate and local enterprises to do business. The year 2018 was defined as the Year of Public Administration Reform by Quang Nam province.

What are your advantages in investment attraction in the coming time? What strategies will Quang Nam focus on to cash in on advantages and catch investment flows most effectively?
The advantages of Quang Nam are its abundant natural and cultural resources, favourable location and good resource management. Not only being an important factor in tourism development in the Central Key Economic Region, Quang Nam is also very experienced in developing tourism built on its cultural heritages and natural resources with international and national support.

Its location adjacent to Da Nang City, the tourism and commercial hub of the Central Coast and the Central Key Economic Zone, is also an advantage for Quang Nam province to develop interregional infrastructure, human resources and services. In addition, its good labour structure is favourable for long-term local economic development. Regional development policies have enabled Quang Nam to become a dynamic economic pillar and improve its people’s living conditions. Another major advantage is the commitment, rapid response and support of the provincial government in carrying out sustainable development strategies based on balanced development plans and green growth scenarios.

To capitalise on advantages and catch investment flows most effectively, Quang Nam will give investment priority to the areas that FDI enterprises are strong at, for example, mechanical engineering, automobile supporting industries, electricity and electronics, apparel and footwear supporting industries, construction material production, agricultural product processing. The province will take full advantage of the ongoing Fourth Industrial Revolution to attract new projects integrated with new technologies to optimise processes and production methods; and stress influential technologies like additive printing (3D printing), biotechnology, new materials and automation.

How will you prepare to attract more capital in the coming time? As for public administration reform, access to land and land clearance that FDI companies care about very much, how will the province deal with these issues?
Quang Nam will mobilise resources to build infrastructure and energy sources for production, improve high-quality human resources, reform economic policies and administrative procedures relating to promoting, attracting and deploying FDI projects and provide a legal corridor for investors to invest in and expand projects.

We advocate investing and prioritising what investors need (infrastructure and skilled labour) rather than what the province has; preparing to catch investment waves of Japanese investors engaged in six prioritised fields within the framework of Vietnam - Japan cooperation; seeking investment opportunities from newly signed agreements such as the FTA with South Korea, the FTA with the Eurasian Economic Alliance and the ASEAN Economic Community.

Administrative reform, land access and land clearance are among major concerns, not only for FDI companies but also for the larger business community, and this is also a key factor to boost economic performance of investment projects. Therefore, provincial leaders will firmly focus on these issues. With the objective of enhancing the quality of the investment environment to catch investment flows in the integration process, Quang Nam will accelerate the interconnection of transport infrastructure systems to create dynamic development areas, complete infrastructure works of industrial zones, and enhance the publicity and transparency of projects to provide easier access for enterprises. The province will concentrate on solving issues relating to land compensation and resettlement to hand over the ground for projects soon, and remove obstacles in the reception of investment procedures. Last but not least, Quang Nam will encourage current investors to introduce local potential and invite new investors to the province to strengthen the foundation to make Quang Nam grow rapidly and sustainably in the future.

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