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Local Economy

Last updated: Thursday, August 16, 2018

 

Phu Yen Boosting Closer Partnership with Businesses

Posted: Monday, August 06, 2018


With great progress in economic restructuring, Phu Yen province is trusted and appreciated by businesses and investors for its positive moves in building up an enabling government of action to better serve people and businesses; initiating and carrying out the Year of Phu Yen Business.

Notably, the economy has been growing steadily at a high pace and shifting to the right direction. In 2017, the gross regional domestic product (GRDP) was VND23,035.3 billion (US$1 billion), 10.2 times that of 1990; and its GRDP per capita was VND35.9 million (US$1,530), an increase of 10.75 times. The economic structure has sharply shifted to increase the share of industry and services and reduce the share of agriculture, notwithstanding being a rice granary of the central region. Specifically, the share of agriculture in GRDP declined from 56.3 per cent in 1990 to 24.3 per cent in 2017, while the share of industry and construction rose from 11.9 per cent to 28.9 per cent, and the share of services climbed from 31.8 per cent to 42.89 per cent.

Support business establishments and stimulate business startups
Phu Yen province had 4,414 enterprises on record as of June 30, 2018 but only 2,818 entities are active. In general, businesses are working stably and adapting to new mechanisms to boost their integration and development. Especially, many companies invested large sums of money to make consumer goods, create many products, and affirm their market footholds, helping brighten the local economic picture. However, compared with locally available potential and advantages, actual business development is still limited and weak. Compared with some provinces and cities in the region and the country, the ratio of business entities to citizens is low. The size of its enterprises is small, with 98 per cent being small and medium-sized enterprises (SMEs).

In order to overcome hardships and support business development, the Standing Board of the Phu Yen Provincial Party Committee issued Directive 04-CT/TU dated January 7, 2016, to take 2016 as the Year of Phu Yen Business, focusing on the target of clearing obstacles against enterprises, creating an open, healthy and fair investment and business climate, making sure that enterprises of all economic sectors operate under the market mechanism and under the law. The province expects to have 500 new companies a year in the period from 2016 to 2020, to have 3,500 - 4,000 active companies by 2020.

To carry out this directive, the Phu Yen Provincial People’s Committee worked out the Action Plan for the Year of Phu Yen Business 2016, asked provincial authorities to raise public awareness of the roles, positions and importance of the business community to local socioeconomic development. It figured out specific policies, mechanisms and programmes to support business development, inspire entrepreneurship, enhance the growth of quantity, quality and competitiveness, boost contributions of the business community to the State Budget, and successfully fulfil local socioeconomic objectives in 2016 and the following years.

According to data released by the Phu Yen Provincial People’s Committee, the province had 408 new enterprises in 2017, up nearly 24.8 per cent year on year; and 228 new entities in the first six months of 2018, an increase of 48 units over the same period of 2017. Given the current business startup growth, the province will likely see 500 new companies a year.

On June 12, 2017, the National Assembly enforced Law 04/2017/QH14 on SME support. This ruling is very important for startups and SMEs. To support and facilitate businesses to operate effectively, Phu Yen province set up the Credit Guarantee Fund for SMEs. Through this fund, the province will guarantee loans for local enterprises, including startups, to do business.

Besides, Phu Yen leaders are calling for industry-leading corporations in Vietnam and foreign nations to invest in the province. This will be the launching pad for local economic growth as well as a motive force for the development of the local business community.

Companioning, creating favourable conditions for investors
In early 2018, the province successfully organised the Phu Yen Investment Promotion Conference 2018 themed “Phu Yen - Investment and Development Cooperation”. At the meeting, the Provincial People’s Committee handed over investment decisions and investment certificates to 18 projects with a total registered capital of VND14,869 billion (US$646 million); presented approach, survey, and investment research reports to 13 projects with a gross investment capital of VND62,819 billion (US$2.7 billion); gave flowers to four investors seeking to invest VND2,290 billion (US$100 million) and US$2.1 billion in the province; and awarded a memorandum of understanding to one project with VND3,000 billion (US$130 million). The total capital of registered projects is US$2.1 billion and VND82,978 billion (US$3.6 billion). Many projects are so big that they will play a motive role in boosting local economic development and sustainability in the future.

To soon bring conference outcomes into reality, the Standing Board of the Provincial Party Committee issued Directive 22-CT/TU dated March 21, 2018, on implementation of tasks after the Phu Yen Investment Promotion Conference 2018. On that basis, the Provincial People’s Committee launched the Action Programme 02/CTr-UBND dated April 10, 2018 on implementation of tasks after the Phu Yen Investment Promotion Conference 2018. With that spirit, 36 projects were approved for investment of VND15,278.5 billion in the first six months of 2018.

According to the plan, the province will urge investors to complete nine projects with a total investment capital of VND9,864 billion; and start four new projects with VND6,248 billion of investment capital. Nine completed projects included Hon Ngoc Bai Tram Ecological Tourism Site; Spot Light Resort; Non-Betalactam Factory of European standards; Son Giang Hydropower Plant; Hoa Hoi Solar Power Plant; Europlast Phu Yen Solar Power Plant; Hi-tech Dairy Cow Farm; material areas for dairy cows; and Colike Phu Yen Animal Farm. Four blueprint projects consist of An Hoa Golf Resort in An Hai Commune, Tuy An District; Trade - Service and Shophouse Complex; Bai Bang Beach Resort; and Hoa Vinh Residential Area in Dong Hoa District.

As for new projects, the province actively facilitates and supports investors to carry out their projects after they are licensed. As for projects notified of approach, survey and investment research and projects awarded memorandums of understanding, the province guides and supports investors to establish necessary documents and procedures to apply for investment certificates.

To assist investors to quickly carry out and operate their projects, provincial authorities have proactively reduced the time needed to settle administrative procedures concerning investment, land, environment, and construction permit. In addition, the Provincial People’s Committee established cross-sector working groups to support enterprises to deal with their hardships and obstacles against investors when they carry out their projects.

PV








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