With abundant potential and advantages of the province, dynamism of provincial government, and efforts of all relevant entities, Binh Dinh province has achieved impressive results in investment attraction in recent years, especially FDI, to become one of the biggest FDI recipients in the nation. Mr. Nguyen Thuc Dinh, Director of the Department of Planning and Investment of Binh Dinh, recently granted an interview on this issue.
Could you please evidence Binh Dinh province’s success in FDI attraction with specific figures?
In the first nine months of 2014, Binh Dinh issued investment certificates for six FDI projects with a total registered capital of US$126.63 million. As of mid-2014, the province had 56 FDI companies with VND1.73 billion of registered capital. Foreign investors mainly came from big economies like the United States, Japan, Russia, China, South Korea, Singapore, Thailand and France. Particularly, the petrochemical complex in Nhon Hoi Economic Zone is expected to cost US$22 billion in investment capital to turn out of 20 million tonnes a year and US$30 billion to make 30 million tonnes a year after 2021.
Recently, some leading Vietnamese companies have invested in Binh Dinh province, including BigC. Nguyen Kim Company is studying its projects in the province. These are very encouraging signs for Binh Dinh as the world economic situation is still difficult.
Lying near rapidly developing provinces like Khanh Hoa, Quang Nam and Quang Ngai, could you tell peculiar methods of Binh Dinh to stand different from others?
The province has invested in many background projects to sustain its social and economic development. The first priority has been given to transport systems.
The start of this creative approach was the investment for the construction of 33-km long Quy Nhon - Song Cau Road, with 19 km running through Binh Dinh, at an investment cost of VND280 billion. Completed in 2001, the work, which is currently National Road 1D, opened up a bright future for remote areas in southern Quy Nhon City and northern Song Cau district (Phu Yen province) and formed a new coastal tourism route in Binh Dinh province and Phu Yen.
Binh Dinh province then sought central budgets or aids for the construction of many key projects like Binh Dinh reservoir (costing over VND1,000 billion), Quy Nhon - Nhon Hoi Bridge (VND600 billion), Nhon Hoi - Tam Quan Coastal Road (VND250 billion), and a pier capable of handling ships of 30,000 tonnes at Quy Nhon Port (nearly VND60 billion).
In 2014, the province has focused some key transportation projects like upgrading National Road 19, upgrading and expanding National Road 1D, building Long Van - Long My Road (Quy Nhon City), and upgrading National Road 1A. It has also sped up the investment promotion for Nhon Hoi Petrochemical Complex, Hai Giang Resort and some projects in Nhon Hoi Economic Zone.
In addition to seeking central budgets and foreign assistances, Binh Dinh province always pays high attention to utilising its internal resources and attracting foreign investment. In order to attract more domestic and foreign investors, the province will build infrastructure works before they arrive and create a favourable investment and business environment. Besides, the province will construct industrial zones, particularly Nhon Hoi Economic Zone, to provide production and business spaces for investors.
Investors in Binh Dinh not only appreciate well-prepared infrastructure but also enjoy sufficient incentives from central and local governments. Investor-friendly policies, coupled with cooperative attitude of relevant agencies, also interest investors.
Binh Dinh province is now giving priority to attracting potential investors. Would you mind telling us in more detail about this investment attraction strategy?
The province has carried out focused investment attraction activities for different markets and industries. As for foreign companies, Binh Dinh has selected potential markets like Japan, South Korea and Thailand to carry out its investment promotion activities, encouraged existing companies in the province to inform and attract their friends and colleagues to Binh Dinh, and asked Vietnamese embassies and commerce chambers in foreign countries to inform investors there. As a result, Binh Dinh province has become one of popular investment destinations in the country.
In 2014, the Binh Dinh Investment Promotion Centre has attracted domestic and foreign potential investors to invest in big projects in key industries like tourism, service, transportation infrastructure, education, health, supporting industries and processing industries. The province has encouraged investors to use modern, environment-friendly technologies which require high intellectual content but low resources like land and minerals. Small companies with modern, advanced technologies from Japan, South Korea, the United States, Western Europe and developed countries will also be attracted into industrial zones and economic zones. Therefore, investment promotion programmes will be accelerated in both Vietnam and foreign countries. As scheduled, the province will develop Nhon Hoi Economic Zone into a driving growth engine of the province.
To ensure a healthy and fair investment environment, other provinces and cities are intensively screening and selecting investors. How about this in Binh Dinh?
This is a concerning issue for us. When we approach, contact and invite investors, we have fundamental criteria. For example, we only focus on famous and trustworthy investors or investors that can pull other investors to the province to produce components for them. We do not attract investment capital at any cost. We do not accept projects using resources ineffectively, using backward equipment and technologies that may pollute the environment and harm the provincial competitiveness. The province also intensifies supervision over ongoing investment projects in order to have best policies for the business community.
In addition to localised incentives for investors, Binh Dinh also requires investors to make deposits for their registered investment items to make sure that such investors will follow their projects. Importantly, the province will raise the service of civil servants for investors. recently, the Provincial People's Committee assigned the Department of Planning and Investment to work with relevant bodies to build the single-window mechanism for business registration, investment, and construction procedures. As soon as this mechanism is brought into use, the service for businesses and investors will be elevated to a new level.
Cong Luan
Vietnamese
