As of July 2011, Ha Tinh province licensed 176 projects with a combined registered capital of over VND1,900 billion and US$9 billion, including 51 projects in Vung Ang Economic Zone and nine projects in Cau Treo Border Gate Economic Zone. Quite obviously, the province has emerged to be an attractive destination for investors.
Challenges
Ha Tinh province was re-established some 20 years ago with a very difficult economic background. The locality has only nearly 2,000 enterprises, a modest value in comparison with neighbouring provinces. Notably, about 40 percent of them are construction companies and many are struggling with difficulties caused by macroeconomic problems. Even MITRACO, a partner that helps the province attract investment capital, has also faced challenges. With relatively low competitiveness, enterprises in Ha Tinh province have difficulty asserting their names on the market and they need a boost from economic development policies.
Development, including economic development requirements, always motivates each person and each locality. On the central coast, Thanh Hoa province is attached to fast-changing Nghi Son; Nghe An is tied to Vinh City, a centre of the northern central region; Quang Binh is driven by famous world natural heritage, Phong Nha - Ke Bang; and Thua Thien - Hue is glorified by former imperial capital and Chan May - Lang Co Economic Zone. In such a context, Ha Tinh province cannot be an outsider beside this vibrant development.
Advantages
In reality, it is not too difficult for Ha Tinh to develop its economy and attract investment. The province has a lot of untapped potential. Particularly, Thach Khe iron ore is estimated to hold reserves of 540 million tonnes, the largest mine of its kind in Southeast Asia. It is also predicted to have 5.3 million tonnes of titanium. The National Road 8 connects Cau Treo Border Gate Economic Zone with central Laos and northeast Thailand. Seaports are also an advantage of the province.
Ha Tinh people are studious and provincial leaders are united. Mr Vo Kim Cu, Chairman of Provincial People’s Committee, said: “We are to serve businesses.” The will of rising up and consensus of provincial leaders are playing important role in attracting investment into Ha Tinh.
Vung Ang and Cau Treo are defined as economic engines of the province. Ha Tinh necessarily concentrates its resources on operating these economic zones, with Vung Ang currently given top priority. This 23,000-ha economic zone houses Son Duong iron mill and port complex, invested by Formosa Group. This 3,000-ha project, including 2,000 ha on land, requires some 6,000 households with 15,000 inhabitants to be relocated and the province has done this very well, better than committed to the investor. This shows the determination of provincial leaders and consensus of local people.
Mr Nguu Tuan Phat, Chief Representative of Hung Nghiep Formosa Company, said: “Formosa will invest US$7.9 billion in Vung Ang in the first phase and we plan to raise the total investment to US$25 billion. We are certain of success because Ha Tinh people are friendly, hospitable and open, and we receive absolute support from the local government and people.”
Ha Tinh province develops Vung Ang Economic Zone, not just to attract FDI projects or increase their contributions to the Provincial Budget, but to strengthen the connection between Vung Ang and Cau Treo Border Gate Economic Zone. This connectivity will ensure a more balanced development between mountainous and coastal regions, and particularly boost trade with potential markets of central Laos and northeast Thailand.
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