Tien Giang is one of the most attractive destinations to investors in the Mekong Delta, particularly foreign investors. So, how has the province endeavoured to quickly become an ideal rendezvous for investors? Vietnam Business Forum has an interview with Mr Tran Van Dung, Director of the Department of Planning and Investment of Tien Giang province, on this issue. Cuong Nguyen reports.
Could you please introduce more about the success of Tien Giang in attracting investment in recent years?
In the 2011-2015 period, the province has mobilised all available investment resources for socioeconomic development. Total social investment capital in five years was estimated at over VND96,000 billion, 2.2 times more than the value in the 2006 - 2010 phase. Of the sum, public capital investment was VND10,900 billion, an increase of 1.73 times over that in the 2006-2010 period, accounting for 10.5 per cent of total social investment capital. In five years, Tien Giang attracted 96 new investment projects with a total registered capital of VND32,000 billion, bringing the number of total licensed investment projects to 233 with VND51,333 billion of investment capital as of the end of 2015. This is an important resource for local socioeconomic development plans.
Particularly, the province drew 48 FDI projects with total registered capital of US$1,041 million in five years, an increase of six projects and double the amount in the previous five-year phase. By the end of 2015, the province had 92 valid FDI projects with a combined registered capital of US$1,652 million, including 52 projects with US$1,476 million in industrial zones and 40 projects with US$176 million outside industrial zones. Tien Giang province’s FDI value ranked 29th out of 63 provinces and cities nationwide and third out of 13 Mekong Delta provinces, only after Long An and Kien Giang provinces.
Hence, Tien Giang quickly filled up rentable areas in My Tho and Tan Huong Industrial Parks and An Thanh, Song Thuan, Tan My Chanh and Trung An Industrial Complexes and carried out Long Giang Industrial Park as planned, all in combination generating essential foundations and resources for local industrial development. In the commercial sector, the province invested VND877 billion to build, upgrade and repair 53 markets, one second-class supermarket and two commercial centres, including VND795 billion from non-State sectors. Initially, Tien Giang attracted investors to upgrade urban areas like seaports, Binh Dong Industrial Park, Soai Rap Oil and Gas Services Industrial Area, Thai Son Water Park, high-tech livestock farming areas, and high-tech agricultural areas.
To lure more investors to tap local potential, how has Tien Giang province acted to accelerate public administration reform, upgrade economic and technical infrastructure and train high-level human resources to meet labour demands of investors?
In public administration reform, administrative agencies have reviewed and amended procedures on investment, land, construction and environmental protection so as to reduce the time required for handling administrative paperwork for investors. In infrastructure development, the province has given special priority to traffic, power grid and water supply projects to serve production and business demands of local enterprises. Typical projects include Provincial Road 878 connecting the Tan Phuoc southeastern industrial area with expressways, Provincial Road 871 B linking the eastern industrial area to National Road 50, Provincial Road 865 connecting with provinces in Dong Thap Muoi region, water pipelines for Go Cong area, and water pipelines for Tan Phu Dong district.
In human resources training, the province has set store in investing in material infrastructure and improving training quality in universities, colleges and vocational training centres. The province has spent VND282 billion on upgrading and expanding Tien Giang University, VND50 billion on Tien Giang Vocational College and VND69 billion on Tien Giang Medical College.
Would you tell us about the practical preference and support policies for investors in a bid to strengthen the draw of the investment environment? What are specifically attractive incentives?
On June 1, 2015, the Provincial People’s Committee issued Decision 19/2015/QD-UBND on regulations investment socialisation of education, vocational training, health, culture, sports, environmental and judicial assessment in Tien Giang province and announced the list of projects calling for socialised investment capital. The Provincial People’s Council issued Resolution 128/2015/NQ-HDND dated December 11, 2015 on support fund sources for implementation of agricultural and rural investment incentive policies in Tien Giang province in the 2016 - 2020 phase. According to the resolution, the province will spare 2 per cent of its budget spending, exclusive of centrally funded budget, for agricultural and rural investment incentives. In 2006, the Provincial People’s Committee has reviewed and considered promulgating agricultural and rural investment policies in Tien Giang province.
Regarding general preference policies, the Provincial People’s Committee has assigned relevant units to research and compile incentive policies to provide the highest treatments concerning land rent and taxes for projects engaged in specially investment-encouraged sectors like high-tech application, infrastructure operation in industrial zones, waste treatment, social housing, worker housing, and investment in particularly poor districts like Tan Phuoc and Tan Phu Dong.
Would you explain the investment attraction strategy of Tien Giang province, particularly for FDI attraction?
To ensure the average annual growth rate of 8.5 - 9.5 per cent and boost socioeconomic development demands in the 2016-2020 period, Tien Giang province will need a total of VND170,000 - 188,000 billion of investment capital. To achieve this target, the province will speed up domestic and foreign investment encouragement, expand investment and trade cooperation ties with other localities in the southern key economic zone, particularly Ho Chi Minh City and the Mekong Delta. Public investment sources for the next five years will be channelled into key socioeconomic infrastructure works attached to three economic - urban zones (My Tho City, Cai Lay Town and Go Cong Town) and mobilise various resources for further infrastructure investment like transport works, power grids, water supply networks and ports. The province will concentrate on reviewing, studying and promulgating open investment mechanisms and policies.
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