“Lying in the central key economic zone of Vietnam, Quang Nam has a long history and culture, copious natural conditions and human resources, and a friendly investment and business environment. The province has all the conditions to attract much more investment in the coming years,” said Mr Tran Van Tri, Director of the Quang Nam Department of Planning and Investment with reporter Thanh Hoang. Quang Nam province is determined to cash in on all advantages and speed up effective investment attraction in the new era.
Would you be kind enough to talk about Quang Nam province’s advantages in attracting investment?
The first primary advantage is the relatively favourable geo-economic position of the province. It adjoins Da Nang City - the largest economic centre in central Vietnam - in the north; Quang Ngai province in the south where the first oil refinery of Vietnam is located; Chu Lai Open Economic Zone, Chu Lai International Airport, Ky Ha Seaport, Free Trade Zone, Truong Hai Automobile Industry Centre and Hoi An tourism complex in the southeast; and Se - Kong River and Laos on the west where Dac Ta Oc Border Economic Zone is taking shape. The area has rich forest resources with diverse ecosystems, many rare herb species, large mineral reserves, and abundant water resources. Quang Nam is focusing on planning and investing for the robust development of this region in the 2011-2015 stage.
Apart from favourable geographical position, Quang Nam is also home to two world cultural heritage sites, namely Hoi An Ancient City and My Son Sanctuary - a complex of ancient Cham towers. In addition, it also has Cu Lao Cham world biosphere reserve recognised by UNESCO in 2009, as well as many historical and cultural sites, beaches and beautiful landscapes for developing world-class luxury resorts. The Nam Hai, Palm Garden, Golden Sand and Hoian Beach Resort are common venues for many national and international conferences, making Hoi An City a Top 10 tourist destination in Asia. Specially, Quang Nam province attracted the largest number of tourists in central Vietnam with 2.5 million persons in 2010.
Since its establishment, Quang Nam province always attaches much importance to restructuring its economy to increase the industrial contribution to GDP. Industrial production establishments are mainly located in Chu Lai Open Economic Zone and Dien Nam Dien Ngoc Industrial Park - the most successful industrial park in central Vietnam. With its endlessly innovative efforts, Quang Nam province is rated by the Central Government as one of provinces with highest industrial growth.
The province made major strides in attracting investment from 2006 to 2010, thanks to its policies of tapping all potential and advantages for this purpose. As regards domestic investment attraction, the province drew VND13,899 billion in 2007, but the figure jumped to VND20,000 billion in 2010. The total registered investment capital of newly established companies exceeded VND16,000 billion in the five-year period, an increase of 4.5 times from a previous five-year period. These included many large-scale projects like Chu Lai - Truong Hai automobile manufacturing and assembling factory, Chu Lai floating glass plant, and an ethanol production plant invested by Dong Xanh Company. Concerning foreign direct investment attraction, Quang Nam licensed 77 FDI projects with total registered investment capital of US$5.1 billion. Notably, the province has presences of world-leading multinational corporations like Indochina Capital Group, Rieker Group (Hong Kong) Inax Group (Japan), Groz-Beckert Group (Germany) and VinaCapital Group.
Additionally, the province received US$500 million of official development assistance (ODA) capital from multilateral international organisations like the United Nations Development Programme (UNDP), the World Bank (WB), Asian Development Bank (ADB), the Organisation of the Petroleum Exporting Countries (OPEC), and the International Labour Organisation (ILO); from bilateral financing from the Japanese, French, South Korean, Danish and other governments; and from non-government organisations (NGOs), to accelerate its social and economic development.
It is known that 50 provinces and cities in Vietnam had newly licensed FDI projects in 2010 and Quang Nam province took the lead with 24.2 percent of total registered capital. Are you satisfied with this result?
In 2010, Quang Nam licensed 10 fresh FDI projects with a combined registered capital of US$4.183 billion. To date, the province has attracted more than 80 FDI projects worth US$5.212 billion, of which the industrial sector has drawn 44 projects valued at US$578.4 million, the tourism - service sector lured 25 projects with US$479.3 million, and agriculture, forestry and fisheries sectors had two projects with US$44.5 million.
I think we should not conclude the result of investment attraction based on registered value, but on how much capital is actually spent on investment projects, how many jobs they create for local people, how important a role they play in the process of economic restructuring, industrialisation and modernisation. Hence, to boost investment efficiency, we frequently examine and revoke inactive or impracticable projects. To date, we have rescinded investment licences of 51 projects with an aggregate registered investment capital of US$4.456 billion. Besides, we focus on removing all obstacles facing investors when they carry out their projects, particularly works related to land clearance and resettlement for people giving up their land for projects. As a result, we speed up the implementation of projects and create more favourable conditions for investors.
What solutions does the province adopt to accelerate the implementation of FDI projects?
To speed up the implementation of FDI projects, Quang Nam will focus on the following solutions in the coming time: Planning, administrative procedures, and infrastructure investment. Specifically, as regards planning, the province will quicken the progress of construction and approve projects in need; perform periodical reviews to supplement and adjust unsuitable plans in order to create favourable conditions for investors to establish and carry out their projects. With reference to administrative procedures, Quang Nam will focus on stepping up public administration reform; enhance transparency of investment policies and procedures; and directly guide local authorities to deal with difficulties facing investors when they carry out their projects. As for infrastructure investment, we will pay more attention to overcoming infrastructure weaknesses, and mobilising resources, especially non-State funded sources, to develop infrastructure construction and energy sources for production activities.
Knowing its advantages for tourism and service development, in addition to above-mentioned measures, the province will also concentrate on developing tourism by building the Hue - Da Nang - Quang Nam tourism cluster. Core components of the cluster consist of travel companies, transport companies, accommodation establishments and tourist sites. Links include vertical links with inputs and outputs, and horizontal links with supporting sectors and important economic foundations. Core components will create high quality products at low cost for tourists. Core components will associate with supporting sectors to improve product quality and increase added value for customers.
What are the development orientations and investment strategies of the province in the 2010 - 2015 period?
Quang Nam province is split into two main regions: Coastal plain and western midland. In 2010 - 2015, in the coastal plain area, we will concentrate on developing such centralised industrial zones as Dien Nam - Dien Ngoc, Thuan Yen, Northern Chu Lai, Tam Hiep, Dong Thang Binh, Trang Nhat and Eastern Que Son. We will also develop small-scale industrial complexes in all districts, particularly those with cottage industries. We will develop coastal tourist resorts and attractions in association with mountain tourism and build a developed international tourism industry. We will form specialised agricultural zones surrounding tourist sites and speed up the development of cottage industry villages to ensure landscaping, logistics and tourism development. At the same time, the province will develop important infrastructure works like Ky Ha Port, Chu Lai Airport and heavy capacity roads. The nucleus of the coastal delta is urban, industrial and tourist zones, which will serve as an engine for provincial development led by the industry, trade, tourism and service sectors.
The midland area will stress the development of electrical industry and agro-forestry product processing and gradually zone out material zones for industrial production. The province will boost trade and build infrastructure where Nam Giang international border gate will be the focus of investment. In addition, Quang Nam will encourage the development of the wood processing industry to increase added value for wood and forest products.
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