Ba Ria-Vung Tau has attracted FDI with priority in certain sectors reducing the number of projects and capital but increasing in quality and disbursement. The province will continue to improve its investment environment to attract FDI projects of high quality, especially in supporting industries and logistics. Following is the interview with Mr Nguyen Phuoc Le, Director of Planning and Investment Department. Minh Thanh reports.
So far, what are the successes and priorities of Ba Ria – Vung Tau in attracting FDI?
Presently the province has 292 FDI projects with total registered investment capital of nearly US$27 billion, with US$10 billion implemented (37.7 percent). FDI played an important role in socio-economic development, accounting for 60 percent of local development capital. Big projects in such areas as industry, sea port, tourism have become driving force in economic growth and restructuring towards industrialisation-modernisation, increasing export, budget revenue and employment as well as developing capital, technology, management, skill and business activities.
The objective of Ba Ria – Vung Tau is to become an industrial province, strong in maritime economy with a network of national and international sea ports, a centre of industries, services, tourism and sea products. To this end, the province will attract investments in industry, services especially logistics and supporting industries for main industries, high technology, processing, oil refinery, health service, tourism and hi-tech agriculture. Tourism will be developed with diversified services such as recreation centres, eco-tourism and sea tourism. Con Dao Island district will become an economic centre of high class tourism.
Meanwhile industrial zones in the province will attract investment projects producing export items for Cai Mep – Thi Vai international transit sea ports. The province will also attract investment projects with products of high competitiveness for global value chains of trans-national corporations.
With advantages in sea ports, communications and transport, industrial and service centres, how will the province attract FDI?
The province has in fact made use of the advantages in various fields. The province has 14 industrial zones with total area of 8,400 hectares. Phu My 3 is reserved for Japanese investors. So far 260 projects have been invested in industrial zones of the province with total registered investment capital of over US$12 billion and in diversified sectors: heavy industry, metallurgy, fertilizers, building materials, manufacturing, ship building and repair, electronics and consumer products. Cai Mep – Thi Vai deep-water seaport nearby will promote import-export.
Concerning sea ports and logistics, the province has 27 ports in operation with design capacity of 90 million tonnes/year, capable of receiving ships up to 160,000DWT. Thi Vai – Cai Mep wharf is 20 km long capable of exporting commodities directly to USA, Europe, Japan and other countries and territories. Together with sea ports and logistics network, the province will continue economic restructuring and attract investments to establish Thi Vai – Cai Mep – Long Son – Vung Tau economic corridor serving industrial zones, refinery and oil and gas services.
As for tourism, the province has 195 hotels and resorts with over 8,300 rooms including 114 hotels from 1 to 5 star attracting more tourists with diversified services, increasing revenue and creating more jobs.
In recent years, there is a decrease in number and volume of investment projects in Ba Ria - Vung Tau, what are you gaining with the new strategy?
In the conditions of global economic recession, foreign investors do have difficulties in financial resources and harsh competition in the region. Consequently, the province has less new projects and registered capital.
Due to high priority given to modern and environment friendly technology instead of obsolete technology using more manual work and causing pollution, the province has decided to choose investors and projects of high technology while encouraging linkages between local and foreign investors in business activities, technology transfer. Therefore, the strategy attracts right investments of high added value, modern and environment friendly technology, joining global value chain (especially in supporting industries and logistics), advancing toward a green and sustainable economy.
The province applies the one-stop shop mechanism for investors, what have been the results of this programme?
When investors come to Ba Ria – Vung Tau, Planning and Investment Department and Management Board of Industrial Zones will help them in all formalities of investment, business registration, investment certificate by one-stop shop. For instance, on April 19, 2007, Ba Ria – Vung Tau People’s Committee issued Decision 23/2007/QD-UBND on projects outside industrial zones simplifying procedures for investors.
The local authorities maintain contacts and dialogue with businesses to remove hurdles, assist them in time, and update provincial portal and websites with preferential treatments. The authorities at provincial and district levels are ready to help investors inside and outside industrial zones in land clearing and improving investment environment.
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