After 4 years of implementing the Investment Attraction Programme in the period 2011-2015, Vinh Long Province has achieved positive results, becoming an ideal destination for investors. To learn more about this success, Vietnam Business Forum interviewed Mr Le Quang Trung, Director of the province’s Planning & Investment Department. Luan Nguyen reports.
Can you tell us more about the achievements in attracting investment of the province in these four years? How has the investment attracting structure in the province shifted?
During these four years of deploying and implementing the program, the economic situation, both in the country and the world, has been struggling, however under the leadership and direction of the Provincial Committee, the Provincial People's Committee, the Party Committee and all level of authorities, during the four years (2011-2014), development investment realised in Vinh Long had reached VND 38,000 billion, of which state capital was VND 9,056 billion, accounting for 23.83 percent; non-state capital was VND 28,113 billion, accounting for 73.98 percent; FDI was VND 830 billion (USD 40 million), accounting for 2.1 percent.
Structure of development capital of economic sectors also has had significant changes, articularly the non-state economy has enjoyed rapid development. While in the period of 2006 - 2010, the state economy accounted for 28.83 percent, but it now fell to 23.27 percent in 2014; meanwhile non-state economy had increased from 64.92 percent in 2006 - 2010 to 74.87 percent in 2014. Only FDI structure couldn’t reach some objectives and expectations outlined. Although FDI projects over the years have focused primarily on agriculture, agro-processing and commodity trade, which are the province’s strengths; the invested amount in each project remained low and there’s a lack of large-scale projects to meet the development demands of the province.
Can you give us a better idea of which economic sectors Vinh Long prioritises for encouraging and calling investment? To attract and invite domestic and foreign investors, what kinds of preferential mechanisms and support policies is the province pursuing?
Vinh Long Province has issued a list of projects in need of investment in the period 2013 – 2015, which include 47 projects of total investment estimated over VND 23,000 billion; prioritising and encouraging investment primarily in sectors such as agricultural and aquatic product processing; processing of animal, poultry and aquatic feed; textile for exports; development of specialty aquaculture areas, specialised crop growing areas to provide raw materials for processing industry; development of farming areas of high-quality of breed and seedling to provide for the province and neighbouring areas.
Additionally, the province is updating the list of investment projects and projects calling for investment in the period 2016 - 2020 to attract investment selectively, prioritising high-tech projects capable of creating great added value; developing a variety of industries and services and paying special attention to investment projects in the field of agriculture and rural areas.
As for support policy to encourage investment, in addition to making good use of investment incentives of the government, Vinh Long also issued a provincial policy (Decision 07/2013/QD-PPC) to encourage and support domestic and foreign investors coming to do business in the province. Specifically, for projects entitled to investment support, investors receive aid of essential infrastructure to industrial park fence. As for projects outside industrial parks but under provincial planning, depending on specific projects, the province will provide partial support of essential infrastructure investment to the business’s fence. There will be special support for building projects in social housing; such as support in accessing investment capital under forms such as preferential credit, interest rate support; assistance in land clearance and procedures of allocation and certificates of land use rights. Also, the province has policy to provide financial support for businesses in worker training to improve employee’s skills with the aim to promote exports.
One of the strengths of Vinh Long that have been highly appreciated by investors are breakthrough reforms of the business environment. Could you tell us more about this success?
To attract investment and develop business, a good investment environment is a must. Investment environment depends heavily on comparative advantage, competitive advantage, policies and mechanisms and especially the administrative reform to create favourable conditions for enterprises’ operation. With this important task identified, Vinh Long has been focusing on publicizing procedures of business registration and investment comply with the state regulation to make it easier for businesses to access and study. Business registration work has been processed quickly within submit day provided that business’s submit conforms to regulations; investment promotion and enterprise support have been improved to meet practical requirements of the economy. In addition, the province also focused on improving the quality of the official website, keeping it updated with investment guideline, enterprises’ information and promotion, videos, the list of projects calling for investor, provincial mechanisms and policies in investment attracting to help companies learn about investment opportunities and procedures.
Especially, Vinh Long has always focused on improving the PCI; promoting administrative reform and removing unnecessary procedures; strengthening dialogue to be able to timely support and help remove obstacles for businesses; doing research to propose specific policies to ensure harmony of interests among investors, the people and the state. Authorities at all levels have worked side by side with businesses, implementing practical solutions to support and remove difficulties for enterprises; strengthening trade promotion through activities like fairs and exhibitions; building sales networks; creating brand names and trademarks for provincial commodities. Notably, credit institutions have made way for businesses to access loans and given favourable treatment to medium and small companies, companies producing goods for export, companies of support industry. The provincial authority also regularly collaborated with ministries and agencies, the Steering Committee of south-western region and particularly organizations and businesses successfully investing in the province, to hold investment promotion conferences to promote the image and investment environment of Vinh Long to investors at home and abroad.
Under the Investment Promotion Program 2015, Vinh Long aims to draw in VND 3,000 billion. To fulfil this goal, what kind of measures the province has been focusing on so far?
We have been focusing on doing the best with the solution package of stable economic development, controlling inflation; encouraging businesses and industrial and small industrial and handicraft units from all economic sectors to expand investment in-depth, renovate technology, improve products’ design to create products highly competitive in both domestic and international markets. The province also has strengthened the management of investment funds from the state budget, focusing capital on projects payment volume, projects or items projected to finish and be put into use within the year; promoting the attraction of non-state investment on the basis of identifying prioritised sectors and fields should be focused on in accordance with conditions of the province, and new investment trends, and also must be feasible.
In addition, the province has paid attention to adjusting, supplementing and adding investment support policies to encourage enterprises to invest in agriculture and rural area in accordance with the conditions of the province and in a highly feasible manner. Besides actively helping enterprises remove difficulties and creating favourable conditions for companies to develop production and business and expand market, Vinh Long also has focused on enhancing the efficiency and transparency of state management, performing with effectiveness administrative procedures relating to enterprise development with the motto “Building a relationship of equality and friendly, with businesses the driving force of evolution” to create an environment attractive to investors.
With clear direction, the province is confident that 2015 will be an exciting year in terms of investment promotion and attraction for Vinh Long promised with many breakthroughs, contributing to socio-economic development in both the short and long-term future.
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