Local Economy

Last updated: Wednesday, May 15, 2019


Building an Enabling Investment Environment

Posted: Wednesday, November 28, 2018

­­­­­­­­­­­The establishment and development investment of Thai Binh Economic Zone is one of key tasks and a turning point for socioeconomic development of Thai Binh province. Vietnam Business Forum Magazine has an interview with Mr Le Van The, Deputy Director of the Thai Binh Economic and Industrial Zones Authority, on this issue. Duy Anh reports.

Could you please tell me about investment attraction results in Thai Binh industrial zones and operations of tenants in industrial zones?
A total of 178 investment projects were operational in Thai Binh province-based industrial zones as of the end of September 2018. They registered to invest VND29,220.977 billion (US$1.3 billion), of which VND19,834.5 billion was disbursed, equivalent to 68 per cent of registered capital. Of the sum, domestic investors registered to invest VND19,048,338 billion (US$830 million), or 65 per cent of the registered capital, in 133 projects, or 75 per cent of projects. They had spent VND12,365.10 billion, or 65 per cent of the registered capital. Foreign investors invested VND10,172,639 billion, or 35 per cent of the registered capital, in 45 projects, or 25 per cent of projects. Foreign investors expended VND7,469.40 billion, or 73 per cent of the registered capital.

As of the end of September 2018, 145 projects in industrial parks were operational. Industrial production of tenants in industrial parks reached VND16,799.6 billion in the first nine months of 2018, up 19.5 per cent year on year and equal to 74.5 per cent of the full-year plan. In particular, FDI firms accounted for VND8,735.79 billion, up 18.7 per cent. The export value of tenants was US$703.8 million in the first nine months of 2018, up 17.5 per cent year on year and equal to 74.7 per cent of the yearly plan. They paid VND572 billion to the State Budget from January to September, of which Thai Binh Customs Department collected VND220 billion and Thai Binh Taxation Department collected VND352 billion, representing a year-on-year increase of 9.4 per cent. Of the sum, FDI companies paid VND257.4 billion. The workforce in industrial parks was VND60,713, up 9 per cent on year, including 34,000 people working for FDI enterprises. 51,606 workers are given social insurance, accounting for 85 per cent of workers. The average monthly income of a labourer is VND5 million.

How do you assess the quality and efficiency of administrative reform conducted by the Thai Binh Economic and Industrial Zones Authority in recent years?
Determining the importance of administrative reform, especially reforming administrative procedures to facilitate enterprises to invest in local industrial zones and contribute to local sustainable socioeconomic development, the authority has actively reviewed and streamlined administrative procedures, shortening the time required to resolve work, especially in investment and construction.

Specifically, the time of settling administrative procedures is already 35 per cent shorter than the regulatory timeframe. Investment administrative procedures concerning investment policy decision take 67 per cent less time than the regulatory timeframe. 100 per cent of administrative procedures under the jurisdiction of the Thai Binh Economic and Industrial Zones Authority are received and returned results of administrative procedure settlement at the Provincial Public Administrative Centre (with about 60 per cent of procedures returned sooner than the regulatory schedule and 40 per cent returned in time. No procedures are overdue). The authority developed and applied the ISO 9001-2008 quality management system to operations of administrative units. Information technology is applied effectively to their management and operation.

In the coming time, the management board will further review administrative procedures under its jurisdiction in order to reduce more time needed for settling administrative procedures; effectively reducing the time of dealing with administrative procedures online for individuals and organisations; actively supporting and promptly detecting hardships and problems arising from the course of enforcing current policies and laws so as to support and facilitate enterprises to develop stably.

What solutions and tasks has the Thai Binh Economic and Industrial Zones Authority focused on to effectively operate the Thai Binh Economic Zone?
The establishment of Thai Binh Economic Zone not only accelerates local socioeconomic development but also creates ripple effects on the entire region, thus helping unlock advantages of the two corridors and one economic belt of the Gulf of Tokin.

The Thai Binh Economic Zone has the following functional sections: Thai Binh Electric Power Centre; industrial zones; port and port services; resorts and entertainment centres; fish farming and forest areas; urban residential quarters; rural residential areas; central system; administrative centre; and green parks.

Thai Binh Economic Zone is a general economic zone (section in section) with preferential investment policies, create an attractive investment environment for external resources to unlock local development potential; gradually form functional areas for the economic zone; focus on industrial development: Building oceangoing ships, fishing ships and gas-fired industries (gas-fuelled electricity, wind power, thermal electricity, fertiliser, construction material, and inputs for mining industry); port economy; tourism, trade; service; urban development and other economic sectors associated with the Gulf of Tonkin Economic Belt.

To effectively develop Thai Binh Economic Zone soon, the Thai Binh Economic and Industrial Zones Authority set up the master plan for construction of Thai Binh Economic Zone and will soon submit it to the Prime Minister for approval as a basis for attracting and deploying potential investment projects into the economic zone; consolidate management; formulate investment encouragement mechanisms and policies; boost investment promotion; and build socioeconomic infrastructure in the economic zone. In particular, roads, including coastal roads that run through Thai Binh province, are expected to be built from January 2019.
The authority will continue to form industrial sections in the economic zone as guided by the Thai Binh Provincial People’s Committee.

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