Looking toward the National Tourism Year of the Red River-Haiphong 2013, Haiphong City has been actively investing in infrastructure construction and creating tourism products to prepare for the national tourism year 2013. The Vietnam Business Forum interviewed Mr Le Thanh Son, Director of the Haiphong Department of Planning and Investment.
Could you assess the operation of enterprises in Haiphong city, particularly those operating in trade and service areas?
Currently, the production and business activities of companies in Haiphong still face difficulties due to the global economic downturn. Local firms are also affected, with large inventories badly impacting their production and business activities, while they face difficulties in getting loans. Businesses in Haiphong City’s management capacity remain weak and their knowledge in laws is still limited. They need more support from associations.
What will the Haiphong Department of Planning and Investment do to deal with difficulties for local enterprises?
Currently, the department has been actively cooperating with agencies to restructure companies, helping them to get loans for their production and business activities. Other assistance is related to debt and corporate income tax extensions to help them to solve their inventory issues and stabilise production activities. The department will also pay attention to raising operation efficiency of business associations and providing training courses for business management, as well as laws for corporate leaders. Besides, administrative reform will be enhanced to attract more investment and support the establishment of new companies.
What has the department done to boost investment in infrastructure for the National Tourism Year 2013?
Over the past few years, the city has paid special attention to attracting investment for infrastructure development to serve the National Tourism Year. The Department of Planning and Investment is the consulting and state management agency for the city in luring investment in technical infrastructure for the National Tourism Year 2013. The department has implemented the following contents:
Contributing opinions to the municipal People’s Committee to carry out measures to create favourable environment to call for investment for socio-economic development in general and tourism infrastructure in particular.
Submitting the city People’s Committee investment and capital allocation plans for socio-economic projects to serve the National Tourism Year: Projects to upgrade and repair Haiphong Museum, Binh Bridge, Section 2A of Road 356 from Nguyen Binh Khiem T-junction to Dinh Vu Port and install traffic lights at Rao 2 Bridge.
The department has been actively promoted and introduced Haiphong’s tourism potential to partners and called on investors to survey the city’s tourism potential. It has also joined hands with local agencies to prepare documents to submit to UNESCO for the recognition of Cat Ba Island as a world natural heritage in bio-diversity. It has also cooperated with local departments and agencies to implement “The year of urban area and traffic safety”.
Haiphong has achieved sound results in tourism infrastructure investment over the past few years:
Investing using state budget: Up to 15 projects in tourism infrastructure have been implemented since 2006 (roads, water supply and drainage at Cat Ba and Do Son tourism sites with investment of VND430.86 billion, up six projects and accounting for 60 per cent of the total investment compared to 2001 and 2006. Additionally, the cultural sector has been also carried out to restore historical and cultural sites.
Investment using non-state capital sources: The city has licensed 45 tourism projects totalling VND53.2 trillion since 2006. The projects cover a total area of 1.14 million ha, including 678.45 ha of sea encroachment. Projects focus on building urban areas, hotels, entertainment areas and golf courses.
Foreign direct investment (FDI): The city has licensed six FDI projects in the tourism sector with total registered capital of US$730.25 million, up 192 percent in capital value against the 2001 – 2006 period, including five wholly foreign invested projects, one of which is Song Gia Resort project of South Korea’s Mibaek, and one joint venture.
Furthermore, attention has been paid to the development of other facilities for tourism. To date, the total number of lodgements in the city reached 301, up 52 per cent compared to 2006, with 7,426 rooms, up 38.6 per cent against 2006, in which 158 hotels are ranked, including 14 hotels ranked at least three star standard. Means of transport for tourists have also been improved.
What are your assessments of the National Tourism Year 2013 and opportunities to expand cooperation and boost investment in the coming year?
The National Tourism Year in provinces and cities nationwide is an annual event of the culture, sports and tourism sector to promote the Vietnamese tourism sector, creating a good image of Vietnam for the socio-economic development of Red River Delta provinces in general and Haiphong City. Haiphong aims to promote its tourism sites and attract visitors with its global integration process. The city has called on resources for tourism development and taken full advantages of localities to raise the community’s awareness of tourism's role in socio-economic development.
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