Attracting FDI, ODA for Development Investment

After the economic crisis in 2007-2008, the attraction of foreign investment in Binh Thuan Province in the past 5 years has prospered, with 46 licensed projects with a total registered investment capital of nearly US$700 million. Especially, in this period, Binh Thuan province has attracted many big investment projects concentrated in tourism-service sectors, such as Bach Duong Hill tourism complex in Tien Thanh commune (US$475.8 million); The Utisys luxury hotel - Utisys Vietnam Company (US$100 million), Lotte Mall Phan Thiet (US$30 million), and RightRich footwear factory (US$9 million).

 

In addition, Binh Thuan has attracted 9 ongoing ODA projects, involved mainly in the areas of health, education, agriculture, infrastructure construction, water resources and climate change. In recent years, ODA has contributed positively to socio-economic development such as in economic growth, economic restructuring, improving the quality of people's lives and contributing positively to the poverty alleviation.

 

In the coming years, to improve the efficiency of FDI, contributing to the socio-economic development tasks period 2011 -2015, Binh Thuan Province will actively attract new FDI projects from the potential nations, less affected by the global economic downturn and focus on areas having advantages in agriculture – forestry – fisheries processing, deep processing of titanium; aquaculture, agriculture; tourism, recreation services; development of infrastructure and human resources. At first, the province focuses to attract investors and large corporations in the industrial sector into Ham Kiem I & II IZ, Phan Thiets IZ, Song Binh IZ, Son My 1 IZ, Tan Duc IZ, Tuy Phong IZ; and small-scale ICs Ham Tan, Lagi and Tuy Phong.

 

In parallel with efforts to improve the efficiency of FDI, the province will also effectively use ODA investment in agriculture, health, education and combat climate change locally. Currently Binh Thuan Province issued Decision 1808/QD-UBND dated 17^th September 2012 approving the list of ODA projects in international campaign period 2012-2015; in which the province calls for funding in areas: supporting social infrastructure, environmental disaster prevention, agriculture and rural development, supporting law system construction, science and technology.

 

Recession and economic crisis in the world today has influenced the attraction of investors to the province, as well as accelerating the implementation of the project. So the view of Binh Thuan is accompanying investors; strengthening and completing the mechanism, policy and administrative reform, creating an open environment friendly to investors.

 

One of the measures to attract investment for the socio-economic development is to promote administrative reform. Recently, the province has focused on steering the reform of administrative procedures under the “one stop shop” (OSS) mechanism and proceed to replicate the implementation of the OSS in the granting certification of registration, tax identification number, and license seal in the provincial Department of Planning and Investment; implement procedures for receiving and resolving administrative records from commune to district level in 5 areas including land procedures, business registration for household business, building permits and certificates of house ownership, ownership of buildings for individuals.

 

In addition to administrative reform, the province has directed the branches and levels to regularly review, amend the procedures and regulations related to investment and business environment; thereby contributing to saving time and cost for businesses, creating favourable conditions to encourage businesses in developing investment and business.

 

In the coming time, the province will direct the DPI continue to coordinate with the branches and levels to revise the projects and continue to work directly with the project owner to review, classify and remove difficulties in investment clearance. At the same time, the province will mobilize investment capital for infrastructure development, accelerate project implementation, as well as propose to cancel projects delayed for unreasonable reasons.

 

On bindings to make investors associated with the projects, the province issued Decision 07/2010/QD-UBND dated January 26 2010 on registration of commitment to implement investment projects out of budget in Binh Thuan province and Decision 30/2012 / QD-UBND dated July 31 2012, amending and supplementing a number of articles in Decision 07/2010/QD-UBND dated January 26 2010 of the PPC. Accordingly, the depositing investments must be defined based on geographical areas and sectors. The main purpose of depositing investment is binding to make investors more responsible and thereby urging investors to quickly implement the project. If investors implement their projects as schedule, the province must pay back the deposit.

 

The implementation of signing deposit investment in recent years, though it can make investors feel less satisfied when they come to Binh Thuan, those investors are weak in financial capacity. Provincial target is to attract investors having ability and experience to Binh Thuan to implement projects, contributing to the economic development of the province.

 

Binh Thuan Province always creates favourable conditions for investors to come and implement projects. Currently, the province is continuing to promote the reform of administrative procedures in the direction of in-depth, quality and efficiency, clearly hierarchical division, favourable for directing investment to create an environment truly open and convenient for domestic and foreign businesses and investors. In return, investors must demonstrate responsibility and obligation to the province in the implementation of projects in accordance with the law and local regulations.