Local Economy

Last updated: Wednesday, May 15, 2019


Improving the Business Environment Is a Thorough Task

Posted: Wednesday, March 06, 2019

Over the past years, Vinh Phuc has put in a great deal of effort to attract investors, develop industries, promote economic growth and successfully become a leading light in FDI attraction and spreading a dynamic and open investment and business environment. Entering this new development stage, the province will essentially improve administrative quality and strongly transform investment attraction methods to make Vinh Phuc not only a large industrial center of the country but also a centrally-run city. Mr. Nguyen Duc Tai, Deputy Director of Department of Planning and Investment, gives an exclusive interview to Vietnam Business Forum Magazine on the above contents. Song Uyen reports.

How do you assess the province’s investment attraction results in 2018 and notable missions and objectives in 2019 - 2020?

By strengthening discipline, building an honest and working administrative system, creating a favorable business environment and effectively carrying out the Action Program for implementation of Government Resolution 01 on key tasks and solutions on execution of socioeconomic development plan and budget estimations, in 2018, Vinh Phuc province continued to have good socioeconomic growth, with all 14 indicators reaching and exceeding initial targets. As for investment attraction, the province continued to obtain good results in both foreign direct investment (FDI) and domestic direct investment (DDI), with the licensed value nearly doubling the target.

In 2018 alone, Vinh Phuc licensed 104 investment projects. Particularly, the province granted investment certificates to 43 fresh projects and allowed 13 existing DDI projects with a combined registered value of VND5.61 trillion (US$200 million), 166.6% higher than in 2017 and 244.5% higher than the full-year plan. The locality also handed investment certificates to 61 new projects and 34 FDI projects with a total value of US$526.8 million, 17.55% higher than in 2017 and reached 210.72% higher than the yearly plan.

These results came from the province’s effective and consistent solutions for a better investment and business environment, higher competitiveness and more effective business startups. In addition to keeping investment promotion activities effective in traditional markets and seeking investment in potential markets, Vinh Phuc also took good care of existing investors by building technical infrastructure in industrial parks, creating ready land funds for investors, providing high-skilled labor sources, accelerating administrative procedure reform by reducing the service time, simplifying procedures for enterprises, tackling hardships against businesses and investors. Besides, the province directed all relevant bodies to focus on executing the project on improving the Provincial Competitiveness Index (PCI) in 2016 - 2020. Vinh Phuc also directed local commercial banks to provide favorable conditions for businesses to access capital, expand production scales, and promote production and business activities.

What is your opinion about the quality and effect of investment administrative procedures in the province in recent years, especially after two years of executing the project on improving investment environment and competitiveness index in 2016 - 2020?

Improving the investment environment is a particular concern of provincial and local authorities and sectors. The province believes that reforming investment administrative procedures is one important solution that strongly affects local people, businesses and investment attraction results as well.

The province’s results of reforming investment administrative procedures have made the local investment environment more attractive to investors. According to the report on the Provincial Competitiveness Index (PCI) rankings released by the Vietnam Chamber of Commerce and Industry (VCCI), Vinh Phuc always secured top rankings in the country. The proactivity of the provincial leadership, transparency and access to information and time cost for fulfilling regulatory obligations are highly appreciated.

In the face of opportunities and challenges in combination, Vinh Phuc province needs to further improve the investment environment to woo more investors, with the central task being effective administrative reform.

Vinh Phuc is stepping into a new phase of enhancing substantive investment attraction. Could you please tell us about investment attraction orientations and solutions in the 2019 - 2020 period and beyond?

In recent years, the Provincial People's Committee have worked out focused promotion programs based on local socioeconomic development plans. The province has ensured harmonious benefits of the government, investors and people in investment attraction; improved the outcome of investment attraction and bettered the investment environment; and selectively licensed investment projects, focusing on financially viable projects, large-scale high-quality projects. Meanwhile, Vinh Phuc has restricted land-intensive, low-value projects, rejected energy-intensive, environment-polluting projects; and focused on locally advantageous fields.

In recent years, regarding investment attraction policies, Vinh Phuc province has focused on promoting and attracting sector-based investment projects, with priority given to industries and services:

- For the industrial sector, priority is given to attracting investment projects for supporting industries for automobile, motorbike and high-tech industries like ICT and electronic device production, software production and automation to form a hub for connecting supporting industries. In particular, the province will woo investors into light industries and projects from multinational corporations.

- For the service sector: focus is paid to education, vocational training, health, entertainment and tourism.

- Basing on partners and investors to entice investors: Vinh Phuc will court investors from technologically advanced countries and territories that have successfully invested in Vietnam as well as Vinh Phuc province like Japan, South Korea, Taiwan, the European Union (EU), the United States and ASEAN countries. The province will tempt well-reputed, experienced and financially viable domestic and foreign investors such as FLC, Vingroup, Hoa Phat Group, Sun Group and Hong Hac Dai Lai.

To become one of the industrial and tourist centers of the region and the country, one of the goals in the 2015 - 2020 term is attracting US$1.3 - 1.5 billion of registered FDI capital and VND14,000-15,000 billion (US$610 - 650 million) of registered DDI capital. In particular, in 2019, the province targeted to US$350 million of FDI fund and VND5,000 billion of DDI fund.

To achieve these objectives, Vinh Phuc province will focus on the following specific tasks and solutions:

Effectively carrying out central and local resolutions for better investment and business environment and higher PCI Index; actively and creatively developing and implementing investment promotion programs and activities, especially doing with investment promotion agencies; executing Resolution 04-NQ/TU dated January 14, 2013 of the Provincial Party Executive Committee (15th term) on local SME development to 2020; consolidating and developing small and medium-sized enterprises (SMEs) equipped with appropriate and modern technology, effective, competitive and sustainable production and management models; carrying out 10 local commitments to investors to inspire them to expand operations.

Speeding up the construction investment of technical infrastructure and industrial zones; further reforming administrative procedures to reduce the time required to settle administrative procedures; enhancing State roles and strictly enforcing sanctions under the law; supporting local enterprises, especially in site clearance and compensation and related issues to quickly give the ground to investors to launch their projects; promptly updating and understanding business operations; holding talks with local enterprises to learn about their concerns.

With its achievements in investment attraction plus its efforts to reform administrative procedures and provide the most favorable conditions for the people and the business community to court investors, Vinh Phuc has endeavored to deliver objectives stated in the Resolution of the 16th Provincial Party Congress: “Striving to make Vinh Phuc one of the industrial and tourist centers of the region and the country, basically complete an urban space to become centrally governed Vinh Phuc City in the 2020s”.

Thank you very much!

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