Administrative Reform Is Development Motivation

 

Situated in the south of the Red River Delta and adjoining the northern economic driving zone (comprising Hai Phong, Quang Ninh and Hanoi), Thai Binh has favourable natural conditions for economic development. In addition to flat terrain, fertile soil (Thai Binh province is known as a ‘rice bowl’ of the country with an annual output of 1 million tonnes), a 50-km long coastline convenient for shipping and tourism development, and rich natural resources like coal (Red River Delta coal basin is measured to contain 210 billion tonnes of coal, largely in Thai Binh province), gas and mineral water, Thai Binh province also has abundant human resources in both quantity and quality, enough to meet all personnel demand by industrial, commercial and service projects at present and in the future. As some fields remain untapped (e.g. coal and tourism), Thai Binh exerts a very strong pull on investors.

 

Thai Binh now has more new advantages because many important projects of the Red River Delta and Thai Binh province have been approved by the Government or will be invested in the near term. Typical projects include Lach Huyen National Port and new Tien Lang Airport in Haiphong City (about 30 km from Thai Binh City); Thai Ha Bridge and two new roads linking Thai Binh and Ha Nam provinces with Cau Gie - Ninh Binh Highway (approved to be upgraded into a national highway); Road 39B connecting Thanh Ne town, Kien Xuong district to Diem Dien town, Thai Thuy district (approved to be upgraded into National Road 37B); National Road 37 and Hong Quynh Bridge connecting with Haiphong City; National Road 39 from Thang Long commune, Dong Hung district to Trieu Duong Bridge, Hung Ha district and from Vo Hoi Bridge to Diem Dien town, Thai Thuy district; a coastal road system from Ninh Binh to Quang Ninh province; Haiphong - Thai Binh - Nam Dinh Highway; and Thai Binh Coastal Economic Zone. These important projects connect Thai Binh province with major economic centres and seaports in the region. To date, the province has completed socioeconomic development planning towards 2020, transport planning, water resources planning and human resources planning. The province also planned and commenced construction on infrastructure works in six large-scale industrial zones and 31 small-scale industrial clusters, covering 1,752.5 ha in total. By the end of 2013, the province licensed 703 projects capitalised at more than VND100 trillion, including 53 foreign direct investment (FDI) projects. Many industrial zones are now open to new investors, including Song Tra, Cau Nghin and Tien Hai industrial parks.

 

Many Thai Binh province-born entrepreneurs and enterprises from far and wide are returning to the province to contribute their wisdom, effort and investment capital to build and develop Thai Binh. Overcoming difficulties caused by the global economic downturn, the business community of Thai Binh province is standing more resiliently on the market. Presently, the province has nearly 4,000 companies and 434 branches and representative offices with a combined registered capital of VND25.7 trillion. More than 700 existing investment projects have created jobs for more than 143,000 workers, including many large-scale, modern projects like the US$3.4 billion 1,800-MW Thai Binh power centre and the US$280 million ammonium nitrate production plant with an annual capacity of 200,000 tonnes.

 

New advantages of Thai Binh province also come from the results of institutional reform, administrative reform and investor-friendly investment attraction policies. The later starting of industrialisation than neighbouring localities and difficulties in investment attraction have cemented the will and determination of the provincial government and citizens on the course of industrial and economic development. More than ever, the entire province is always ready to welcome, cooperate and facilitate investors to tap local potential and advantages for joint development.

 

Especially, the province has also stepped up public administration reform, improved the investment and business climate, and enhanced its competitiveness in investment attraction. Thai Binh also reformed governance, sped up information technology application to administrative activities; reviewed and abolished overlapped administrative procedures to reduce the time required for handling administrative formalities by 30 -50 per cent; issued regulations on the operation of single-window investment licensing unit affiliated to the Office of Provincial People's Committee; and guided the formation and operation of similar single-window units in districts to quickly settle administrative procedures for organisations and citizens. Thanks to drastic directions of all-tiers of government, the provincial competitiveness index (PCI) of Thai Binh has been significantly improved in recent years. In 2013, its PCI ranked 21^st out of 63 provinces in the country, an increase of four places from the previous year. The province was among provinces and cities with good provincial governance.

 

Amidst economic downturn in recent years, all-tier authorities in Thai Binh always side with enterprises to cope with emerging obstacles in business and investing activities. While reviewing policies for appropriate enforcement to ensure uniformity, feasibility and practicality, the Provincial People's Committee has provided timely and adequate directions and measures to overcome difficulties, support enterprises and develop the market as guided by the Central Government (in 2013, we rescheduled payment terms, reduced and exempted VAT for 628 enterprises and corporate income tax for 363 enterprises, and slashed a half of land rentals for 22 enterprises); directed banks to lower lending interest rates, reschedule maturity terms, reduced interest rates and extend repayment deadlines for companies as guided by the State Bank of Vietnam (SBV). Thai Binh authorities also held several dialogues and meetings with enterprises, particularly meetings between tax authorities and businesses, meetings between banks and enterprises, and conferences on business confidence. In addition, Thai Binh sped up investment and trade promotion and market search and expansion for the business community.

 

Recognizing administrative procedure reform as a key task in all-level administration, a key to unlock the door to investment sources, and a driving force for development, Thai Binh province has expressly shown its resolute determination to this work. Compactness, modernity, openness, transparency and shortened time for fulfilment are the objectives of administrative procedure reform which have been carried out successfully by Thai Binh. The efforts and results are highly appreciated by citizens and businesses, as well as the Government.

 

Specifically, to enforce the Decree 20/2008/ND-CP of the Government dated February 14, 2008, the Thai Binh Provincial People's Committee directed provincial agencies, district authorities and commune authorities to publicise telephone numbers and email addresses to receive feedback on administrative procedures. The Provincial People's Committee issued more than 30 documents to direct and enhance the supervision of administrative procedures. By the end of 2013, all administrative agencies from provincial to grassroots levels have one-stop source units responsible for handling administrative procedures submitted by citizens and businesses. Moreover, as information technology is applied to administrative reform, the time and expenditure required for handling administrative procedures has been considerably shortened, even among administrative units. So far, the province has simplified and shortened by 30-50 per cent the time for thousands of administrative procedures across all sectors and geographical areas.

 

In investment, Thai Binh issued Decision 14/2008/QD-UBND dated December 31, 2008 on regulations on coordination among State agencies in settlement of business registration, tax code registration and corporate seal registration for investors. The province also promulgated additional regulations on one-stop source mechanism for investment registration in the province in an attempt to reduce and simplify administrative procedures and ensure compliance with current laws. For the time being, businesses only need to go to the single-window unit, located at the Working Office of the Provincial People's Committee, to submit documents and receive replies. The province has also instructed relevant bodies to apply the single-window mechanism at the district level to facilitate citizens and enterprises to carry out administrative procedures. According to the assessment by the Government of Vietnam, Thai Binh province ranked ninth out of 63 provinces and cities in the country in the Administrative Reform Index and second in the Provincial Governance and Public Administration Performance Index (PAPI) in 2013. Thai Binh always topped in the Red River Delta region.

 

Thai Binh always opens up opportunities for all investors to study and invest in the province, listens to frank opinions and exchanges from enterprises and investors, and supports them to deal with difficulties in doing business. The province will further reform administrative procedures and improve the investment and business environment to be a more attractive and trusted destination for all investors, as the province has themed the Thai Binh Investment Promotion Conference as “Thai Binh - Trustworthy destination for investors” in October 2014.