Breakthrough in Investment Environment Improvement

Ha Giang province will celebrate its 20^th anniversary of re-establishment in August 2011. In the past time, it has adopted a lot of macroeconomic measures and taken specific actions to create a dynamic, attractive investment environment. Vietnam Business Forum interviews Mr Nguyen Van Son, Standing Vice Chairman of Ha Giang People’s Committee, on this topic. Trong Dat reports.

 

The Resolution of the 15^th Provincial Congress set forth overall development directions and objectives for the period till 2015, with major contents including four innovations, eight breakthroughs and 15 core programmes. The province also put forward specific tasks and measures in order to complete 19 major social and economic development criteria, and ensure political stability and border security. One of four innovation contents is the reform of mechanisms, policies and investment environment.

 

To create an attractive and friendly investment environment, the Provincial People’s Committee has firmly directed public administration reform in all aspects. With the one-door mechanism, the time for completing administrative procedures is shortened by a third. Competent authorities regularly meet, dialogue and listen to complaints from enterprises, discussing with them to find solutions to their difficulties in production and business activities. This has become a common practice, and an annual event. Many incentive and business support policies have been implemented seriously and effectively.

 

Currently, tourism, border economy and industry are defined major economic sectors of Ha Giang province. So, investment capital will be primarily channelled into these fields. In 2010, the Ha Giang province Dong Van Karst Plateau was recognised as a global geopark by UNESCO. The question for the province is how to gradually improve, upgrade and build tourism and service infrastructure. Accordingly, Ha Giang encourages enterprises to invest in advantageous areas like tourism, agro-industry product processing and mineral processing. We will give special priority to large-scale projects and downstream manufacturing projects which turn out high economic value products.

 

Along with applying government guidelines and policies on investment incentives and attraction, Ha Giang province also adopts and issues some mechanisms and policies to create a comfortable, convenient environment to draw investment capital for social and economic development.

 

Provincial investment attraction policies mainly focus on land rent and tax incentives. For example, we will choose the lowest levels according to the given framework. Investors will also enjoy the highest tax incentives, like land rental or corporate income tax exemptions and reductions.

 

Besides, the province enacts policies to encourage enterprises to invest, like market, capital and infrastructure supports. Particularly, they are allowed to directly export their products and given priority access to commercial loans. Provincial banks will support at most 50 percent of funds for site clearance and land compensation for production facilities, and at most 30 percent of site clearance and land compensation fees for road and electric systems linking to their facilities. The province also pays attention to infrastructure investment and human resources training to support investors.

 

Ha Giang province has defined targets for 2011 and subsequent years: Attracting investment capital to create long and sustainable strides in economy, society and environment. To realise the above objectives and tasks, it is important to create a level playing field for businesses, and create an attractive investment environment by improving provincial competitiveness index (PCI) criteria like leadership vanguard, transparency and accountability, and human resource training.

 

In addition to consistently implementing investment incentive mechanisms and policies and accelerating administrative procedure reform, on June 22, 2011, the Provincial People’s Committee decided to establish the Ha Giang Investment Advisory and Promotion Centre which is responsible for guiding and solving administrative procedures quickly, efficiently and effectively. Ha Giang is also giving priority to developing infrastructure, particularly transport infrastructure and building industrial zones to provide more favourable conditions for enterprises to invest in production and business activities. Authorities at all levels must always listen to enterprises’ opinions and proposals to help them solve production and business difficulties promptly.