Favourable Environment for European Investors

With policies to actively promote potential and exploit advantages, for the past years, Dong Nai has been one of 4 leading localities in the country in terms of foreign investment attraction. So far, there have been 13,000 domestic enterprises and nearly 1,000 foreign ones working in Dong Nai province. As for foreign funded projects, Dong Nai has attracted a total registered capital of US$19.4 billion from businesses of 35 countries and territories. Among those, European companies hold the top position concerning investment in Dong Nai, with 65 projects and total registered capital of US$2.33 billion, creating 20,500 jobs. These include many famed European corporations such as: Nestlé Vietnam, Robert Bosch Vietnam, Shell Vietnam, Akzo Nobel Coatings Vietnam, and Metro Cash & Carry. Most European enterprises have strong financial and technological capacity. Especially, they are very active in local social welfare activities as well as environmental protection.

 

Mr Dinh Quoc Thai, Chairman of Dong Nai Provincial People’s Committee, said that despite facing certain difficulties, European investors have always taken actions to adapt to the legislation environment in Vietnam and have made considerable contributions to Dong Nai province’s economic growth. Thus, Dong Nai regards European enterprises as the core of its investment promotion ahead of fiscal year 2011-2012. At present, the province is mobilizing all resources to speed up progress of key transportation infrastructure projects. Planning includes many large transport infrastructure projects to be put into operation by 2020. In addition, other fields such as electricity, water, waste water treatment, worker accommodation and services will also be comprehensively invested to create the foundation for stable, long term investment attraction.

 

With advantages of transport, being near international airport and harbour, and open investment procedures, Dong Nai has really become an attractive destination for European businesses. But, despite satisfaction with the investment environment in Dong Nai, most European companies worry about human resources, especially skilled labour. Accordingly, it is more urgent than ever to work out the puzzle of high quality human resources.

 

According to Pierre J. Magne, Chief Financial Officer of Nestlé Vietnam, after two successful projects in Amata IZ, his company is expanding investment into Dong Nai with construction of the third plant and capital of US$270 million. However, so far, recruitment of 200 labourers to work in the Dong Nai-based plant has not met requirements. Mr David John, Director General of Bayer Vietnam, said that after investing US$34 million in a fertilizer and pesticide plant in Amata IZ, Bayer Group wants to expand investment into other fields such as high tech materials, but faces a puzzle of inadequate workforce for this sector.

 

Mr Vo Quang Hue, Director General of Robert Bosch Vietnam, said that apart from infrastructure and investment incentives, an abundant labour force of high quality is the first priority of European enterprises when choosing investment locations.

 

Facing feedback from European investors, Chairman Dinh Quoc Thai said that in order to meet enterprises’ demand for high quality labourers, Dong Nai is making efforts to increase the percentage of trained labour, which now reaches over 50 percent. The province has a detailed training programme for 2011-2015 in many sectors. In the future, according to Governmental planning, many universities will be moved to Dong Nai to reduce pressure on Ho Chi Minh City. This will be a great advantage for businesses choosing Dong Nai as their destination.