Constantly Improving Investment Environment

In recent years, many companies did not expand their operations because of global economic slowdown, difficult access to credit loans, rising prices of input materials, growing borrowing costs, rising inventories and potential production stagnation. Infrastructure development projects of many companies slowed down owing to difficulty in fundraising, and the unavailability of good infrastructure is also a reason for the reduced flow of investment capital into the province.

 

To sustain a high economic growth pace and enhance economic development sustainability, Dak Lak province attaches much importance to accelerating investment promotion, development cooperation and aid attraction to draw more domestic and foreign investors into the province.

 

Since the Law on Investment took effect, Dak Lak province has attracted 608 projects with a total registered capital of VND73 trillion (US$3.4 billion), including 10 FDI projects with US$178.11 million. With the great efforts of local authorities to introduce investment and business opportunities, more and more domestic and foreign investors have arrived in Dak Lak to study investment opportunities, including many well-profiled names.

 

Dak Lak province has been constantly improving its investment environment by introducing many incentive policies and the most convenient and easiest administrative procedures for investors. Regarding investment incentives, the province has applied the best level for investors, including land rent, land lease and corporate income tax.

 

When preparing investment promotion activities, the province clearly defines industries, fields, locations, strategic investors and big projects that are capable of drawing new investors. Dak Lak also adopts new investment promotion methods, with a focus on direct and regular contacts with big domestic and international partners and corporations, to introduce local potential and investment environment. It also strengthens cooperation with domestic and foreign investment promotion agencies and renovates investment promotion methods.

 

In addition, the province provides detailed information on investment projects introduced to investors, gradually professionalises promotion stages, facilitates investors to study investment opportunities, and substantiates its competitive advantages. Besides, Dak Lak pays much attention to training and fostering the expertise of officials in charge of investment promotion.

 

In 2012, Dak Lak province issued its plans to increase the provincial competitiveness index (PCI). Since then, its PCI scores have steadily increased year after year. However, as other provinces and cities in the country are also making every effort to improve their investment and business climate, its PCI index is still in the middle of the ranking.

 

To increase and speed up investment attraction into the province in 2014 and beyond, in addition to bettering the investment climate, the province issued Plan 6154/KH-UBND dated August 27, 2014 on measures to raise PCI in 2014, required all State units to understand the important role of businesses in local economic development, resolved difficulties against enterprises, and maintained close business - government relations. Dak Lak also raised the expertise and accountability of civil servants and officials, and enhanced the publicity and transparency of planning documents.

 

Together with applying synchronous solutions to enhance the investment environment and sharpen competitiveness, and renovating investment promotion activities, the Provincial People's Committee has changed its investment attraction policies to lift the efficiency of land use, select investment projects with high added value, and tighten investment management to rule out incapable investors.

 

In the event of slow economic recovery, investors find it very hard to make investment decisions. Many commercial services, ecological tourism, school, hospital and other projects have been licensed and granted land, but investors were unable to deploy their projects. To deal with this situation, Dak Lak province has reviewed and classified projects, requested investors to pay deposits, urged competent agencies to support lethargic projects, and ruled out incapable investors. The Provincial People's Committee has revoked 98 investment licences.

 

The revocation of investment projects that fail to maintain registered progress ensures fairness and healthiness of investment climate in the province and delivers resources to capable investors.