In the past years, Phu Tho province has made great efforts to improve its business environment, enhance competitiveness, and expand cooperation to attract resources to promote socioeconomic development. To effectively carry out Resolution 19/NQ-CP dated March 12, 2015, Phu Tho province is deploying its chosen directions to remove the bottlenecks in site clearance, push up the progress of key infrastructure projects, and strengthen administrative reform. Vietnam Business Forum Magazine has an interview with Mr Bui Van Quang, Vice Chairman of the Provincial People’s Committee and Director of the Department of Planning and Investment. Ngo Khuyen reports.
How do you assess the investment attraction situation in Phu Tho province over the past five years (2011-2015)? What are remarkable successes, and issues that still need to be addressed?
In the 2010 - 2015 period, Phu Tho province defined infrastructure investment as one of three major development breakthrough stages and closely introduced practical solutions to achieve remarkable results. In the past five years, the province mobilised VND69.06 trillion for development investment, more than doubling the value in the 2006 - 2010 period, of which State budget accounted for 48.6 percent, the private sector invested 44.6 percent and the foreign sector contributed 6.8 percent. Phu Tho province has carried out 242 important infrastructure investment projects worth over VND31.5 trillion to create breakthrough development in socioeconomic infrastructure, particularly the transport system.
So far, the province has built, restored and upgraded 1,000 km of national, provincial and district roads; and completed seven major bridges (Kim Xuyen, Song Lo, Ngoc Thap, Hoang Cuong, Hac Tri, Doan Hung and Dong Quang). Many urban agricultural, rural, communication and information infrastructure projects have been invested and put to use. Phu Tho basically completed infrastructure systems for Thuy Van Industrial Park, Phu Ha, Cam Khe and Trung Ha industrial complexes. In addition, the province also actively built, completed and raised first-class urban criteria of Viet Tri City, built Phu Tho Town into a third-class urban zone, and upgraded infrastructure works in Hung Temple historic site, Hung Vuong Square, Van Lang Park, Hung Vuong University, provincial and district hospitals, and education and training facilities.
The above results showed that Phu Tho province is a strong magnet to investors. That is the appeal of a potential locality, particularly in tourism, agriculture, forestry and mining. That also comes from the early planning and construction of five large-scale industrial zones and 19 smaller industrial complexes covering a total land area of 3,000 ha, of which many industrial parks and industrial complexes have an individual area of 300-500 ha to lure investment projects. That also results from the province’s incentives for investors of infrastructure, real estate, trade centre, urban centre and tourism zone construction.
2016 is the first year to apply the medium-term plan, 2016 - 2020. Would you mind sharing some major directions and solutions in investment attraction of Phu Tho province in the next five years?
In the 2016 - 2020 period, the province will continue to see infrastructure investment as one of four key breakthrough development stages. The province will mobilise resources for development investment, increase non-State investment capital, encourage the private sector to invest in infrastructure development in the form of public-private partnership, further attract foreign direct investment (FDI), facilitate rapid development of information and communication infrastructure, and apply effective land tendering mechanism.
The province has set a specific objective of mobilising resources to invest in synchronous and modern infrastructure in Phu Ha, Cam Khe, Phu Ninh and Trung Ha industrial parks. It will give priority to investment in transport systems linking its economic zones with national artery routes like Ho Chi Minh Road, Au Co Highway, Noi Bai - Lao Cai Expressway, National Road 32, National Road 70B and Van Lang Bridge. It will upgrade provincial roads and new traffic routes in industrial, urban and tourist zones, and asphalt 70 percent of rural roads. Phu Tho province will also closely coordinate with ministries to complete Van Lang Bridge, Ho Chi Minh Road (Phase 2), national highways, provincial roads and railways. Besides, the province will draw investment capital for building urban infrastructure in Viet Tri City, making it a festival city, a dynamic city, a growth nucleus of the region and the nation. It will upgrade Phu Tho Town into a city, and Tan Phu Commune (Tan Son District) into a town. Besides, Phu Tho will enlist all available funds to build multi-purpose irrigation projects, large pumping stations, dikes and key projects.
To accomplish the above tasks, the province will speed up the completion of overall socioeconomic development plan, urban infrastructure development plan and land-use plan, among others, to attract investment capital to create more non-agricultural jobs. Besides, Phu Tho will arrange large-scale projects to create ripple effects and attract other investment sources for development, and encourage capable enterprises to invest in infrastructure development in the form of public-private partnership (PPP), BOT, BOO and BLT.
One important measure the province will continue is to improve investment attraction mechanisms and policies and speed up administrative reform to better investment environment and enhance provincial competitiveness index (PCI). Investment promotion will target big corporations and change its focus from “what the province has” to “what the investors need”. The province will actively solicit assistance from the government, ministries and central agencies in investment promotion; actively seize investment opportunities to turn out new high-tech industrial products.
How do you assess the implementation of Government Resolution 19 in 2014 and 2015 on major measures to continued improvement of the business environment and national competitiveness? How are they carried out in Phu Tho province?
In response to Resolution 19/NQ-CP of the Government dated March 18, 2014 on improving the business environment and enhancing national competitiveness, the Phu Tho Provincial People's Committee issued Action Plan 2399/KH-UBND dated June 16, 2014 with major objectives as: Improving the business environment, promoting administrative procedure reform, reducing the process and time required for fulfilling administrative procedures, reducing administrative costs, ensuring transparency and enhancing accountability of public authorities, creating a favourable business environment, and ensuring equality for business entities.
On that basis, the Provincial People’s Committee directed local authorities and related units to realise its development roadmaps as defined. Many important tasks defined for 2014 were implemented effectively and achieved positive results. The production and business environment was improved, as evidenced by its PCI in 2014 jumping 15 places to 37th position on national ranking and 3rd position in the northern mountainous region.
To further improve the business climate and raise the national competitiveness in 2015 and 2016 and implement Resolution 19/NQ-CP of the Government dated March 12, 2015 on key tasks and measures to continue improvement to the business environment and national competitiveness in 2015 and 2016, the Provincial People’s Committee also announced the corresponding action plan. Accordingly, the Provincial People’s Committee requested relevant bodies to review and propose amendments and supplements to current laws, mechanisms and policies to create a favourable and equitable business environment for all business entities, organisations and citizens. Phu Tho also focused on developing synchronous and focused infrastructure to push up socioeconomic development, sped up information technology application, synchronously carry out solutions to improve human resources quality, and stimulate scientific research and technological innovation.
Regarding investment field, the province has striven to simplify and reduce the time required for completing business establishment and investment registration certification to quickly bring production projects into operation and production, as well as shorten the time to settle bankruptcy proceedings and business termination. The province has promoted the reform of processes, records and procedures in tax, import, export and customs fields. In addition, Phu Tho has facilitated and ensured equality, publicity and transparency of access to credit for all economic sectors, based on market mechanism.
Would you mind introducing key projects and works that Phu Tho province uses to draw investment capital?
Phu Tho province has given priority to attracting investment capital for following priority areas and projects: Investment and operation of infrastructure systems in Cam Khe, Trung Ha and Ha Hoa industrial parks; development of ecological tourist zone with a hot mineral water spring and a 17,000-hectare special-use forest (virgin forest) with many caves and waterfalls like Ao Chau Pond - Ha Hoa, South Hung Temple Tourism Service Area, and Tam Nong Tourism - Sporting Complex. The province will focus on attracting FDI projects engaged in electronic component production, high technology, textile, automobile and machinery, as well as PPP infrastructure development projects.
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