Attracting Investments in Areas of Comparative Advantages

 

Overcoming difficulties and challenges in initial stages, Kien Giang has recorded important achievements in attracting investments in recent years. So far, the province has 414 projects by 380 local and foreign investors, including 28 FDI projects, with total investment capital of US$3,075 million. The investments focus on areas of advantages such as tourism, service and aquaculture.

 

In general, investment projects are in line with the development plan and environment protection goals of the region. In the years to come, while facilitating investments, Kien Giang People’s Committee will consider more carefully the legal status and financial capacity of investors instead of granting licenses en masse as in the past.

 Kien Giang has comparative advantages in geographical location and natural resources for high quality products, how will you increase investment efficiency in the years to come?

 

Indeed, Kien Giang has those comparative advantages. However, the development of those advantages requires several conditions, especially technical infrastructure. Presently, some infrastructure projects are under construction such as Duong To international airport, An Thoi and Hon Chong ports, and the Southern corridor linking Bangkok – Kampot (Cambodia) – Kien Giang. Those projects will help Kien Giang attract more local and foreign investors. Besides, Kien Giang is also reviewing the planning of industries and concentrating investment capital for infrastructure projects to develop the advantages of the province.

 

 To increase investments, how do you improve administrative formalities and preferential treatment for investors?

Administrative formalities are very important for attracting investments. In recent years, Kien Giang has made great efforts to improve them. Last September, Kien Giang People’s Committee issued Decision w2q105/QD-UBND and Decision 2106/QD-UBND establishing a one-stop process for investments. In Kien Giang, investors need to come only to the Department of Planning and Investment to complete all necessary formalities, such as  Investment Certificate, detailed planning 1/500, environment evaluation report and fire prevention.

 

Regarding preferential treatment, Kien Giang has developed the State policy and law on preferential treatment and introduced them to investors, helping them get the highest benefit from the preferential treatment.

 

 From now to 2015, which are high priority areas for investment and how will you improve the investment environment?

In the present time, tourism and tourism services, aquaculture and processing are the comparative advantages of Kien Giang. Therefore, from now to 2015, the province will review the long-term plan and concentrate capital to develop infrastructure for these sectors. The province will also attract industries of high technology and develop sectors with comparative advantages, such as building materials, agriculture-forestry-aquaculture processing, supporting industries, ship building and clean industry.

 

 To improve investment environment, the province is accelerating administrative reform to overcome hurdles and increase efficiency. The latest move is to establish one-stop shop for investment formalities, saving time and money for investors.

 

 As for policy and mechanisms, the province is flexible in calling for investments. The province applies any policy and mechanism beneficial for businesses and the province in compliance with the law.

 

This is the key question, as Kien Giang has attracted many investments, but with delayed implementation. Among 414 projects there are only 68 projects completed (16.4 percent) and 46 projects under construction (11.1 percent).  Since the beginning of this year, among 300 projects which applied for implementation, only 5 projects are under construction (1.6 percent). The main reason is the capacity of investors. The province has started reviewing the capacity of investors such as financial resources, implementation process, and cancelled licenses of 71 projects.