In 2014, Nghe An started a number of investment projects with a major impact on socio-economic development. That's the bright spot in the bleak picture of attracting investment of the country. This result is due to the direct attention of the Central and the continuous efforts of the provincial government in 2014 and earlier years. The main achievement is the result of the above factors, Nguyen Van Do, Director of Nghe An Planning and Investment Department, confirmed to Vietnam Business Forum. Ngo San reports.
How do you evaluate the results of attracting investment in 2014?
As of November 15th 2014, Nghe An province had granted and adjusted investment certificates for 127 projects with a total registered capital of VND27,384 billion, of which granting certificates to 105 new projects with a capital of VND18,522 billion and adjusted 22 projects to increase more VND8,862 billion. The highlight is that Nghe An had attracted capital in a large number of projects such as Dong Van hydroelectricity (VND1,800 billion), Muong Thanh Cua Lo Hotel (VND459 billion), adjusted Do Luong cement plant project into Song Lam cement project (VND10,327 billion), Hoa Sen Steel Sheet project (VND2,300 billion), Laminated MDF Board project (VND1,900 billion), and Lan Chau-Song Ngu ecotourism, villas, sport, entertainment in Cua Lo town (VND1,969 billion).
The total implemented capital of new projects in 2014 reached 28.3 percent of registered capital. The projects which went into operation in 2014 created jobs for 8,000 employees, typically BSE electronics Co., Ltd. 3,162 people, Prex Vinh Ltd. 1,600 people, Haivina Kim Lien Ltd. 1,146 people, and contributed VND2,542 billion to the province’s budget. Some projects which are being implemented quickly are Hoa Sen Steel Sheet Plant, MDF Factory, and Masan Group food centre. Other projects, such as Improvement Zone B Quang Trung (Vingroup, VND2,392 billion) are urged to be grant investment certificates. The province is promoting a number of major projects such as: VSIP6 Cluster; Textile cluster of Textile Corporation; Quynh Lap 2 Thermal Power Plant and Trade Centre of Lotte Group; Water Production Factory of Loc Tuan Construction Company.
However, investment attraction of Nghe An also has some limitations. The number of projects in economic zones and industrial parks is small compared to the total number of the province, only 11/102 projects and only one FDI project with a capital of US$9.4 million. Moreover, Nghe An has not attracted large FDI projects which can create the impetus for socio-economic development of the province.
What are the factors which bring achievements in investment attraction?
First of all, it can be seen that after the Politburo issued Resolution 26-NQ / TW dated 30/07/2013 on direction and tasks to develop Nghe An to 2020, the Government and ministries, Central agencies, provinces, foreign institutional investors and foreign interest in Nghe An increasingly more. Many foreign and domestic investors and enterprises have paid interest and come to study, learn and implement opportunities to invest in the province. In particular, there are a number of major projects, solving more jobs and increasing budget revenues, contributing to socio-economic development of the province.
In 2014, Nghe An successfully held large investment promotion events with enhanced quality content and organisation. The Investors Meeting in Spring 2014 was the largest such conference ever, with the participation of the Chairman of the National Assembly and 750 deputies, of which 9 Central Committee members, 13 Deputy Ministers and many corporations, large corporations. At the conference, the PPC signed and granted investment certificates to 12 projects with a total registered capital of VND18,277 billion. To date, the 06/12 projects have been licensed and started construction and 03/06 projects which were negotiated being sponsored have been signed credit contracts.
Along with organising investment promotion missions working in Russia, South Korea; Embassy of Singapore, Japan and Korea in 2014, Nghe An welcomed and worked with 22 delegations from different countries to explore business opportunities for cooperation. The promotional activities also concern many diverse forms; thereby creating multiple channels to promote investment markets and partners. The province updated content data of investment promotion on the electronic portal of the province in 4 languages (Vietnamese, English, Japanese and Korean), while enhancing the links to other related organizations such as JETRO, KOTRA, the Department of foreign Investment, Investment Promotion Centre in North, Central, South of Vietnam.
Nghe An also assisted investors in implementing project to do investment promotion in place for the projects which are planning to expand. The PPC assign responsibilities for each provincial leaders and sectors of monitoring and supporting key projects to accelerate implementation pace. The province regularly removes difficulties and obstacles for businesses, investors through dialogue conference, interdisciplinary meetings. The province also implements scheme to foster entrepreneurs in Nghe An province in the 2012-2015 period, towards 2020. In 2014, Nghe An organized 11 training courses with over 1,100 officials and businessmen.
Implementing Resolution 26-NQ / TW of the Politburo, the province has directed the departments to build and implement plans to improve the investment environment, enhance competitiveness under provincial Decision 3373 / QD-People's Committee dated July 21st 2014. The province also has drastically implemented developing critical infrastructure scheme of the province, through which the infrastructure, especially transport (roads, airports ...) and economic infrastructure, were improved significantly. The PPC has directed its departments and branches to build a scheme to submit to the Government to consider extending the administrative boundaries Southeast Economic Zone (area of 750 ha for project VSIP6) and apply for incentives such as Nghi Son economic Zone, Hoang Mai Industrial Zone and Dong Hoi Industrial Zone. So far, the government has agreed with both contents; opening up favourable conditions to attract new investment in the area.
Can you tell us some investment orientation of Nghe An in 2015 and the years to come?
In 2015, Nghe An poses a number of targets to improve the business environment and attracting investments, including: having high PCI scores compared to other provinces in the country and among top 30 cities and provinces with the best PCI; attracting at least 100 projects with a capital VND19-20 trillion (FDI capital VND6000-7500 billion); having realized capital of VND10 trillion; creating jobs for 10,000-12,000 workers; starting building VSIP6 complex (QII / 2015); starting construction project for raw water production plant of Tuan Loc JSC and proceeding to sign commitments and granting Investment Certificate to projects Vingroup Urban Area and Quynh Lap 2 Thermal Power Plant.
On that basis, the Province set orientation to attract investment in each sector and specific locations. Typically in infrastructure development, the province called for essential projects, serving to attract direct investment: Industrial Park - Urban Service VSIP / BECAMEX Binh Duong (EZ Southeast), Gate 5 and 6 of Cua Lo port, Dong Hoi port and the road to the port of Thanh Thanh Dat Co., Ltd; IP infrastructure investment projects: Tho Loc, Dong Hoi, Hoang Mai 2, Nghia Dan, Service Logistics, Bus stops, vacation stops, and parking areas.
In industry, Nghe An focuses on attracting export production projects, especially the production of products and goods within the TPP, goods for domestic consumption; clean industry, high-tech applications industries; supporting industries: manufacturing equipment, electronic components, telecommunications, information technology, and automation equipment.
The service sector will prioritize the development of commercial centres, large scale supermarkets; giving priority to investors having trading systems across the country and internationally, such as financial services, banking and insurance; Warehousing logistics services; Ecotourism park, resort, luxury hotels (5-star); entertainment area; and ecological restaurant systems.
As for partners, besides traditional investors such as those from Japan and Korea, the province will expand to potential partners such as Singapore, Thailand, the Middle East and Europe. In 2015, Nghe An will boost cooperation with other twin cities of Nghe An overseas such as: Shizuoka (Japan), Gyeonggi (South Korea) and Ulianop (Russia); and tighten cooperation with donors: World Bank; Asian Development Bank; Japan International Cooperation Agency; German Bank for Reconstruction; and Korean International Cooperation Agency.
Vietnamese
