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Local Economy

Last updated: Monday, March 25, 2019

 

Vinh Phuc: Government and Businesses Work together to Make Breakthroughs

Posted: Wednesday, March 06, 2019

From a purely agricultural province, Vinh Phuc quickly rose to become a major industrial center of the North and is on the path to become a centrally governed city. Despite facing many hardships, the province still achieved many important socioeconomic development results in 2018, especially the total budget revenue of over VND33,000 billion (US$1.44 billion). These achievements came from economic policies and solutions like accelerating efforts for drastic administrative procedure reform and promptly removing difficulties for enterprises. Vietnam Business Forum Magazine has an interview with Mr. Nguyen Van Tri, Chairman of Vinh Phuc Provincial People’s Committee, on this issue. Ngo Khuyen reports.

Could you please introduce the remarkable socioeconomic development highlights of the province in 2018 and development orientations in 2019?

In 2018, with innovative and decisive leadership and administration by the Provincial Party Committee, the Provincial People’s Committee and the Provincial People’s Council, together with ongoing efforts of all-tier so of authorities, the business community and the people, Vinh Phuc achieved comprehensive results and fulfilled all 14 objectives.

First of all, the economic growth was high, reaching 8.06% (higher than the target of 7.5 - 8%). The economic scale increased significantly, with the gross regional domestic product (GRDP) topping VND93.5 trillion (US$4.1 billion), up 9.56% or VND8.2 trillion from 2017, to bring the per capita GRDP to VND85.62 million. The economic structure shifted toward a desired pattern, with a shrinking share of agriculture, forestry and fishery to 8.17% from 8.52% in 2017 and a higher share of industry and construction to 60.71% from 59.62%, and the dipping share of services to 31.12% from 31.86%.

In particular, the industry - construction sector expanded 13.5% year on year to VND209,957 billion (US$9.1 billion) in 2018. The agricultural, forestry and fishery production rose 3.9% from a year earlier, recording the highest growth in three years. Trade and service activities prospered in the year, with an export value amounting at US$2.246 billion, 14% higher than in 2017. In 2018, Vinh Phuc welcomed more than 5.2 million visitors and made VND1,670 billion of tourism revenue, up 15% in visitor arrivals and 11% in value, helping realize the Action Program aiming to make tourism a spearhead economic sector.

The province had tremendous success in investment attraction with 104 new investment projects. Specifically, it granted investment decisions and investment certificates to 43 new projects and allowed 13 existing DDI projects with a total registered capital of VND5.61 trillion (US$245 million), 166.6% higher than in 2017 and 244.5% higher than the target. It also licensed 61 new projects and permitted 34 existing FDI projects with US$526.8 million of a total registered capital, 17.55% higher than in 2017 and 110.72% higher than the plan. In particular, although tax revenue from the FDI sector slumped sharply on a duty reduction policy on automobiles, most other budget revenue items reached or exceeded initial targets. Hence, the State budget revenue reached VND33 trillion (US$1.43 billion).



Effectively carrying out the Project No. 01 of the Provincial Party Committee on arranging organizational apparatus, streamlining personnel and improving personnel quality in the 2016 - 2020 period, the administrative apparatus has gradually been streamlined and operated effectively while the responsibility, spirit and attitude of public employees has been substantially raised.

In 2018, Vinh Phuc effectively operated the job exchange and provided support for vocational training and job creation. Hence, the province generated nearly 25,000 new jobs, including 2,000 people sent to work in Japan and Taiwan.

To have all communes fulfil new countryside criteria in 2019 and become a new countryside province in 2020, the Provincial People’s Committee firmly directed its subordinates and local authorities to carry out this target. By the end of 2018, the province had 103 out of 112 communes recognized as new countryside communes.

2018 witnessed a milestone in urban development of Vinh Phuc: Phuc Yen City was founded. This historic event marked an important milestone in urban construction and development of Phuc Yen in particular and of Vinh Phuc in general.

In addition, the operation of Vinh Phuc Public Administration Center and 9 Cities and Districts Public Administration Centers have helped accelerate administrative reform, tighten administrative discipline, and facilitate e-government construction to serve the people and align the streamlined and effective organizational apparatus.

Outstanding socioeconomic development results in 2018 were important prerequisites to fulfil critical tasks in 2019 and beyond, with a focus on promoting administrative reform, substantially improving the business and investment environment, clearing the ground, speeding up key investment projects for socioeconomic development; raising people's lives and preparing for upcoming all-tier Party meetings.

What does the establishment of the Vinh Phuc Public Administration Center (December 29, 2017) mean to administrative procedure reform? How did it perform after one year of operation?

Carrying out Resolution 01-NQ/TU dated September 1, 2016 of the Executive Board of the Provincial Party Committee on fundamental solutions to better investment environment and competitiveness in the 2016 - 2021 period, the the Provincial People's Committee issued Decision 3189/QD-UBND dated October 11, 2016 approving the project on improving the investment environment and provincial competitiveness index of Vinh Phuc in 2016 - 2021, where the establishment of the Vinh Phuc Public Administration Center was a key solution to deploy the above project. The center was established from the reshuffle of the Vinh Phuc Investment Promotion and Support Agency (IPA), a province-level place to receive administrative procedures, supervise the settlement of administrative procedures and delivery of results to individuals and organizations.

From January 22, 2018, the center has officially received documents served by 18 agencies, units and the Office of the Provincial People’s Committee. Concerned agencies and units assigned 31 seconded officers and brought 1,038 province-level administrative procedures to the center, including 240 inter-agency procedures under the jurisdiction of the Provincial People’s Committee and the Chairman of the Provincial People’s Committee. From January 22, 2018 to December 20, 2018, the center received 30,838 records and settled 27,588 records, including 26,386 records delivered to applications ahead of schedule, accounting for 95.64%.

After one year of operation, record reception, settling monitoring and result delivery at the Vinh Phuc Public Administration Center fundamentally changed the process of resolving province-level administrative procedures. Settlement time has been significantly reduced 30 % -40% to save time and effort for individuals and organizations. According to statistics integrated by public administration software, in 2018, the total time of prematurely settled records was 642,917 hours (equivalent to 26,788 days). According to results of service quality surveys launched by the center from December 10 to 20, 2018, with 1,816 respondents, 90.09% thought that administrative procedure settlement at the center was better than before, 8.64% said that it was the same and only 1.28% said it was worse.

In recent years, Vinh Phuc is known to have a dynamic and open investment environment, a bright spot of FDI attraction, evidenced by large-scale projects. Would you mind sharing core points of improving the business and investment environment over the years?

Vinh Phuc province defined industrial development as a foundation, tourism service development as a key drive and agriculture and rural development as an important task. With the support of central authorities, the dynamism and creativity of local authorities, the solidarity and effort of the Party, government and people in the province, Vinh Phuc has become one of the leading lights in investment attraction in recent years.

Thoroughly grasping the Party and State guidelines on administrative reform, the Provincial People’s Committee timely concretized policies and mechanisms by promulgating documents to direct and administer administrative procedure reform policies. The Provincial Party Committee, the Provincial People’s Council and the Provincial People’s Committee regularly instructed all levels and sectors to settle administrative procedures for people and investors, provide favorable conditions for investors to carry out investment procedures, site clearance compensation and investment projects.

Vinh Phuc seriously launched the single-window mechanism on all three levels. The provincial level is the provincial administrative center consisting of 16 provincial departments and two central agencies based in the province. The district level is the public administrative center of nine districts and cities. The commune level is the single-window division of 137 communes, wards and towns with a total of 1,652 administrative procedures in 170 fields. The province assigned the Vinh Phuc Industrial Zones Authority to provide investment and business administrative services for investors in industrial zones. In Vinh Phuc province, investors needed less time to get investment licenses than centrally regulated. Administrative procedures and their order of settlement are publicized in a bid to remove harassment and annoyances to investors. After being licensed, location recommendation, land allocation, construction permit and environmental impact assessment are all carried out through the Vinh Phuc Public Administration Center.

Implementing the Government's Resolution 35/NQ-CP dated May 16, 2016, leaders of the Provincial People’s Committee and concerned bodies meet with entrepreneurs at the Entrepreneur Meeting Hall at the Head Office of the Provincial People’s Committee at 4:00 p.m. every Friday from October 2016. This significant activity has been practically useful for investors, businesses and entrepreneurs. Besides, this event has created a friendly, close government - business relationship.

What are the province’s commitments to enterprises and investors?


With the motto “All investors coming to Vinh Phuc are citizens of Vinh Phuc”, the province defined enterprises as a driving force of development. Therefore, the provincial government always provides the most favorable conditions for business development. Enterprises are equal to access land, infrastructure, power supply, water supply, vocational training, tax incentives, credit sources and communications. With its ongoing efforts, Vinh Phuc’s Provincial Competitiveness Index (PCI) has always secured high rankings in the country. The province is striving to become a basically industrial province and complete an urban space for Vinh Phuc City, making Vinh Phuc one of industrial and tourist service centers of the region and the whole country to restructure its economy towards sustainable development by 2020.

Thank you very much!









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