In recent years, Bac Ninh has welcome major domestic and international enterprises, which has demonstrated that the local investment climate is becoming more attractive. The local vibrant investment has helped improve the image, the position of Bac Ninh, confirm the province as a trustworthy destination for both domestic and overseas investors. To learn more about the investment attraction in Bac Ninh, reporter Dinh Hien talked with Mr Ngo Sy Bich - Director of Bac Ninh Industrial Parks Authority.
How would you assess the investment attraction into the industrial parks in Bac Ninh in recent years?
Up to now 496 projects have been granted investment certificates in force in the industrial parks in Bac Ninh province, in which there are 265 domestic projects with total investment of VND17,581.3 billion, 231 foreign projects with total investment of US$2,579.05 million. Projects on leased land account for 1021.57 hectares. In fact the attracting investment into the industrial zone in Bac Ninh has recently attained high growth and stability, affirming Bac Ninh’s credibility for the investor. In particular:
The number of investment projects in industrial parks in the period 2005-2010 is 61 projects per year on average, total investment on average reached US$507 million per year. However, the number of projects through the years fluctuated, caused mainly by the impact of the world’s economic situation, especially the financial crisis of 2007-2009 (The number of projected attracted in 2009 was 51 which is 13 projects lower than in 2008).
The number of projects with foreign investment is increasing rapidly and gaining the initiative over projects with domestic investment. In the years from 2005 to 2007 the number of domestic projects was always greater than the umber of projects with foreign investment (in 2005, the number of domestic investment and foreign investment project was 28 and 19 respectively ; in 2006 was 27 and 25, 36 and 31 in 2007). The years 2008 - 2010 this ratio changed, in 2008 the number of domestic investment and foreign investment projects is 16/48, and 21/30 in 2009 and in 2010 is 36/51.
The projects’ quality has been enhanced, demonstrated by the investment rate on the land leased and increasing number of projects year by year. Statistics for the period 2005-2010 shows that in 2005 the ratio of investment capital for 01 hectares of leased land is US$ 1.73 million per hectare, which has increased to US$ 2.77 million/ ha in 2006 and in 2010 reached US$ 6 million per ha, thus the average investment capital rate for the 01 hectares of leased land in the period 2005 to 2010 reached US$ 4.15 million. Investment capital rate for 01 projects which in 2005 is US$ 4.99 million project has increased to US$ 5.99 million/project in 2006 and US$ 5.69 million/project in 2010. The capital investment on projects has uneven growth, with the highest rate in 2007 was US$ 19.31 million /01 project while the average of the period from 2005 to 2010 reached US$ 7.59 million /01 project.
The number of countries and regions that have invested in projects in Bac Ninh industrial parks has been increasing. In 2005, in addition to projects with domestic capital, the foreign investment projects in the industrial zone in Bac Ninh are mainly from Asian countries and territories such as Taiwan, China, Singapore, Thailand, Indonesia.In 2010, there are projects from other countries in the region such as Korea, Japan and the countries in Europe and America such as USA, Germany, UK, Republic of Samoa ...
Bac Ninh industrial parks are attracting more and more success of large projects. In your opinions, which factors have created this success?
Bac Ninh industrial parks have large investment projects such as projects of Canon, Samsung Electronics Company, Hong Hai Group ... coming is a project of Nokia. The reasons for attracting those projects successfully are:
First, Bac Ninh has properly applied the guidelines of the Party and State in building and orienting social economic development of the province.
Second, Bac Ninh has effectively promoted the advantages of geographical location, the potential of traditional handicraft villages in the planning and construction of industrial zone development. The work of planning industrial parks had the cohesiveness and consistency with the economic social development planning of the province, making the cohesive liaison between the inside and outside infrastructure of the industrial zone; constructing economic linkages among businesses inside the industrial parks and with enterprises outside the zone. Hence, this creates strong internal market for investors. Simultaneously close direction of the construction of the system infrastructure within and outside the fences of industrial parks has ensured requirements for production and business activities of investors.
Third, we determined the orientation of attracting right investment, boosting the attraction of the foreign investment project in the fields of manufacturing electrical products, electronics and telecommunications. To boost administrative reform to create favorable conditions, and save time for investors in the implementation process.
Fourth, Bac Ninh has created favorable conditions for developing the type of support services for production and business activities of investors, such as banking, logistics, customs brokerage, contact information ...
In addition, Bac Ninh has studied to develop human resource in the province to ensure the quantity and quality for investors; Support to resolve quickly and in time of problems and difficulties in the project implementation and production;Provide better social security for investors.
All these have created an favorable business environment for investors, which was clearly affirmed by the provincial competitiveness index of Bac Ninh, improved markedly in recent years: In 2007 Bac Ninh was ranked 22th on provincial competitiveness, ranked 16th in 2008, ranked 10th in 2009 and in 2010 Bac Ninh raised to 6th.
To continue exploiting these advantages, what efforts has the Bac Ninh Industrial Parks Authority has made to improve management efficiency to attract investment?
The encouraging results in attracting investment in recent years is due to the efforts of officials and public employees of the Management Board of Industrial Zone in Bac Ninh as the functions of the State’s management in industrial zone in order to improve efficiency of attracting investment. Specifically: Regularly monitor the implementation of the construction of infrastructure of investors; speed up the reform of administrative procedures towards a simple, compact and efficient direction; Carry out research, study the subjects and topics to enhance the operational efficiency of enterprises in industrial parks and support businesses ; Together with investors, perform timely support, quickly resolve the difficulties and problems of investors.
Besides promoting investment, environmental issues in industrial parks currently are also a challenge. Does Industrial Parks Authority have any plans in coordination with relevant departments to direct the industrial parks towards sustainable, environmental- friendly development in the future?
In order for the industrial parks to have sustainable and environmental friendly development, in the coming years, the Bac Ninh Industrial Parks Authority will try to implement some regulations to coordinate the tasks of state management and environmental protection in the industrial parks with the departments, branch, sector, People’s Committee which has been approved by the City People’s Committee through the issued Decision No. 47/2011 dated 06.4.2011.
Simultaneously implement a number of tasks, measures as follows:
1. There are 06 industrial parks in official operation in which 04 industrial parks have built industrial wastewater treatment plants with total capacity of 12.000m3/person(Tien Son IP, Yen Phong IP, Que Vo IP and Thuan Thanh 3) and 02 is ongoing construction (VSIP and Dai Dong - Hoan Son IP);
2. As directed by the provincial People's Committee, the Bac Ninh Industrial Parks Authority has asked the businesses with solid waste to have contracts with 02 recycling companies in the province for processing, sorting and recycling to avoid hazardous waste that are not yet controlled as at present;
3. For new development of industrial parks, investors have to invest in building a collection system and wastewater treatment under Vietnam’s required standards before letting secondary enterprises lease for project implementation;
4. Improving the quality appraisal of EIA reports for projects, strengthen the review check of EIA, only allow the project into operation when environmental solutions have been approved and treated to meet environmental standards in accordance with contract and wastewater services to the Industrial Zone Infrastructure Development Investment Company;
5. Strengthening coordination with relevant departments involved in the inspection, testing and treatment for serious violations of the law on environmental protection.
It can be claimed as success in attracting investment in industrial parks in Bac Ninh province in the recent past as it has attracted the projects from big Groups, large companies in the fields of electrical, electronics and telecommunications, such as Canon, Hong Hai , Samsung, Nokia. These are projects with high added value in industrial production, contributed greatly to the successful implementation of 17th Resolution of the Provincial Party Committee of Bac Ninh to basically become an industrial province in a modernised direction by 2015.
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