With lucid leadership of the provincial government and endeavours of relevant units, plus reasonable, flexible and creative mechanisms and policies, Kon Tum province has become a favoured destination for investors. Vietnam Business Forum has an interview with Mr Vo Van Manh, Deputy Director of the Department of Planning and Investment of Kon Tum province. Hoang Lam reports.
Could you talk about the investment attraction results of Kon Tum province?
Kon Tum province has so far licensed 117 investment projects with a combined registered capital of VND28,028 billion (US$1.4 billion), which rented 58,229 ha of land. In 2012 alone, the province granted investment certificates to 19 projects with a total registered investment capital of VND3,880 billion and agreed on in principle investment plans for 23 projects registering to invest VND960 billion. Its economic zones are housing 64 investment worth projects valued at VND5,367 billion, of which 44 projects worth VND756.25 billion have been put into operation and 20 projects are underway with VND98 billion disbursed.
In agriculture and forestry, the province attracted 25 projects, mainly engaged in planting commercial forests, planting forests for paper materials, planting rubber, ginseng, vegetables and tea, raising livestock and aquatic creatures. In this field, Vietnam National Coal, Mineral Industries Holding Corporation Limited (Vinacomin) stands out, with many rubber planting projects invested by its affiliates. Tan Mai Company invested VND2,938 billion (US$140 million) to plant forests for paper pulp production. Chu Mom Ray Company spent VND141 billion to grow rubber, while Duy Tan Company also injected VND133 billion into a rubber plantation project.
On July 18, 2012 the Prime Minister issued Decision 936/QD-TTg approving the overall socioeconomic development plan for the Central Highlands till 2020. This decision was enclosed a list of key programmes and projects in the Central Highlands, including a project to develop Ngoc Linh ginseng into a national specialty crop in Kon Tum province. On April 17, 2013, Kon Tum province issued Decision 269/QD-UBND approving the Ngoc Linh ginseng development plan in the period from 2012 to 2020, with a vision to 2025, in Dak Glei and Tu Mo Rong districts. The development plans require 31,742.8 ha of land and VND24,898.9 billion (US$1.1 billion) of investment capital, of which VND920 billion will be used for infrastructure construction and VND23,978.9 billion will be used to grow Ngoc Linh ginseng.
At the end of 2012, Ngoc Linh ginseng was planted 148.24 hectares, and another 50 hectares is expected to be planted within 2013.
More than 1,260 ha of ponds, lakes and reservoirs are in use for hydropower, irrigation and aquaculture. There are 2 enterprises and 4 cooperatives breeding sturgeon, salmon, initially for sturgeon hatching success just to provide localities in the province and some neighbouring provinces.
25 projects of investors registered to invest in medicinal plants, investment and development of vegetables, flowers, fruits in the KonPlong district with a total area of1169.2 hectares.
On February 5, 2013 Prime Minister issued Decision 298/QD-TTg approving the planning of the development of Mang Den National ecotourism site and KonPlong urban master plan of district KonPlong to 2030. To date, many investment projects in the field of tourism services in operation and most investors registered investment in ecotourism and large scale resorts.
As regards ODA capital sources, the province has so far received VND863 billion from 28 programmes and projects concerning agriculture and rural development in combination with poverty reduction; electrification; economic and social infrastructure (transportation, water supply, drainage, irrigation, etc.); education; and other fields.
Would you mind telling us the specific plans and programmes to develop flagship economic sectors and key products?
To effectively tap local advantages, the Kon Tum Provincial Party Committee issued Resolution 03-NQ/TU on “Construction and development of key economic sectors and key products in Kon Tum province until 2020.”
According to the resolution, in the 2011 - 2015 phase, the province will develop five sectors into flagship sectors, including perennial crop planting; forest planting and care; agro-forestry production and processing; extractive industry; and electricity production, transmission and distribution. The resolution also specifies the development of nine key products, including coffee; rubber and rubber products; cassava and cassava products; Ngoc Linh ginseng; vegetables; freshwater fish; pulp and paper; brick and tile; and electricity.
By 2015, the province strives to have 70,000 ha of rubber trees producing over 50,000 tonnes; 12,000 ha of coffee and 25,000 tonnes of coffee beans; 25,000 ha of cassava and over 340,000 tonnes of cassava roots; 500 ha of Ngoc Linh ginseng (about 100 ha to be tapped from 2015) and 40 tonnes of ginseng; 500 ha of vegetables and 6,750 tonnes of products; and about 500 tonnes of output sturgeon and salmon. The province will also process 6,000 tonnes of coffee powder; 100,000 tonnes of cassava starch; 100 million litres of bio-ethanol; 100,000 products made from rubber; 130,000 tonnes of pulp and paper; 120 million tunnel bricks; 30 million unbaked bricks; and 1 billion kWh of electricity (from hydropower plants managed by the province).
By the end of 2013, there are 2 targets to be implemented according to Resolution 03-NQ/TU, reaching 74,198 ha of rubber, 12,752 ha of coffee.
So, to effectively implement Resolution 03-NQ/TU, gradually promote local strengths, resources, potentials and opportunities to attract domestic and foreign investors, what solutions will Kon Tum take in the coming time?
The province is accelerating administrative procedure reform and applying the one-stop source administrative mechanism to provide more favourable conditions for investors to do business in the locality. Benefits of people in locations where projects are situated are taken into account when the province considers licensing. Relevant bodies are told to submit development support budgets for key industries and products to the Kon Tum Provincial People’s Committee. The provincial government has also asked the Government to issue mechanisms and policies to draw investment capital into the development triangle of Vietnam, Laos and Cambodia in general and into Kon Tum province in particular.
In the second half of the 2010 - 2015 period, Kon Tum province is resolute to boost investment attraction by implementing drastic measures like reviewing, supplement and adjusting the overall socioeconomic development plan and detailed industry-specific development plans; diversifying advertising and investment promotion forms in the country; integrating investment promotion programmes of Kon Tum province into national investment promotion programmes to boost the popularity of Kon Tum province’s image among domestic and foreign investors; linking the website of Kon Tum Investment Promotion Centre to websites of investment promotion centres in other localities and especially the website of the Foreign Investment Agency (FIA) to help domestic and foreign investors to learn about investment opportunities in Kon Tum province in the most convenient way.
The province will step up public administration reform for investing and enhance the capacity and accountability of local authorities. It will also deploy the provincial competitiveness index improvement project by issuing investor-friendly policies; host regular meetings with local businesses and investors to know and seek solutions to problems faced by them in specific projects; and improve the investment environment in Kon Tum province.
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