Vinh Phuc Plans for Supporting Industry Development

In recent years, Vinh Phuc province has achieved many remarkable accomplishments in socio-economic development and maintained high-speed economic growth, shifted economic structure towards expected patterns featured by an increasing proportion of industry, construction and service, and a declining proportion of agriculture, forestry and fisheries.

 

The above achievements have significant contributions of foreign direct investment (FDI) projects. To date, Vinh Phuc province has attracted 126 FDI projects with a total registered capital of US$2.7 billion. Among 13 countries and territories investing in Vinh Phuc province, Japan is the biggest investor with 19 projects valued at nearly US$700 million. Japan was the first country to have investment projects in Vinh Phuc province. Japan-based Honda and Toyota have laid the foundation for the development of the automobile and motorbike industries in the province. Then, South Korea's Daewoo and Italy's Piaggio followed with their automobile and scooter projects. Vinh Phuc province always greatly appreciates the projects of both domestic and foreign investors for their brands, and significant contributions to the development of the province in the past years.

 

Vinh Phuc province is striving for the objective: "Achieving all basic elements of an industrial province by 2015 and becoming Vinh Phuc City by the 2020s." To achieve this goal, the province is determined to tap and promote resources for development investment, especially foreign direct investment sources. The province will focus on developing supporting industries. Vinh Phuc is now a centre of automobile and motorcycle production and assembling, and is striving become the centre of electronics, information technology and telecommunications industries in northern Vietnam. From the regional development plan and the provincial development plan to 2030, with a vision to 2050, we are building essential urban and rural infrastructure. Therefore, the province not only has the potential to develop mechanical and electronics supporting industries, but also has a great opportunity to support the development of the construction industry. By combining economic conditions, utilising scientific and technological achievements, grasping opportunities and choosing the right investment directions with appropriate scales and steps, with policy supports of the Government and efforts of enterprises, the province’s construction supporting industries will have a new development level and contribute effectively to the country’s industrialisation and modernisation.

 

To concretise supporting industry development plans, on June 24, 2013, the Vinh Phuc Provincial People's Committee issued Decision 1588/QD-UBND approving the Vinh Phuc supporting industry development plan till 2020, with a vision towards 2030, with a prioritised aim of developing supporting industries to lay the groundwork for the sustainable development of key industries in the province in association with the socioeconomic development master plan. The province strives to make supporting industries an important link for industrial production in the country.

 

Thus, by 2020, the province's support industries will be modern and advanced enough to join in production chains and supply most components, parts, maintenance and repair services for industries in the province and neighbouring localities. By 2030, supporting industries will be an important link in the global supply chain of large multinational corporations in the world. Expectedly, the average annual growth of supporting industrial production value is 23.23 percent in the period till 2015, 18.71 percent in the 2016-2020 phase, and 17.63 percent in the 2021-2030 period. Production value of supporting industries is hoped to reach VND13,855 billion by 2015, VND32,661 billion by 2020 and VND165,725 billion by 2030. Supporting industries are forecast to account for 19.56 percent of total industrial production value by 2015, 36.71 percent by 2020, and 36.91 percent by 2030.

 

With the principle "All investors in Vinh Phuc are citizens of Vinh Phuc - The success of enterprises is also the success and the pride of the province," Vinh Phuc province values the interests of enterprises and sees investors as long-term reliable partners and customers. Therefore, the province always has friendly sentiment for investors and facilitates enterprises to invest in effective production and business activities.

 

The government and people of Vinh Phuc province have made efforts to improve the local investment climate, focused resources to attract investment capital for development, invest in essential infrastructure construction like traffic, electricity, water and telecom, supported training for workers, timely settled investors’ requests, reformed administrative procedures, and removed difficulties for enterprises and investors not only in the preparatory stage but also during a lifetime operation of projects.

 

As foreign-invested supporting industry projects, apart from general incentives of the State of Vietnam, Vinh Phuc province also offers its own preferences for investors locating projects in the province, like rapid settlement of administrative procedures with one-stop policy at the Vinh Phuc Investment Promotion and Support Authority (IPA Vinh Phuc), with the required time just a third of the general provisions. Investors are provided financial support for personnel training and recruitment, and for investment project documentation.

 

Particularly, the province has issued Decision 47/2012/QD-UBND dated November 14, 2012 on support for supporting industry projects in industrial zones in Vinh Phuc province through IPA Vinh Phuc. The province supports consulting fees for investment project documentation (from VND20 million to VND200 million), incorporate announcement and product popularity (VND2 million), environmental impact assessment reporting, land-use rights certification fees, construction permits, foreign hiring extension fees, and seal registration fees. These supports are settled within nine working days.