Actively Applying Initiatives to Support Businesses and Investors

10:40:24 AM | 11/8/2019

To learn more about Quang Nam province’s investment attraction solutions and orientations, especially for Korean enterprises and investors, the Vietnam Business Forum Magazine has an interview with Mr. Dang Phong, Director of the Department of Planning and Investment of Quang Nam. Hoang Lam reports.

What are advantages and radical measures for Quang Nam province to effectively lure foreign investment flows, especially those from Korea?

As one of five provinces and cities in the Central Vietnam Key Economic Region, Quang Nam province is surrounded by Da Nang City to the north, Dung Quat Economic Zone of Quang Ngai province to the south, Central Highlands provinces of Vietnam and Lao PDR in the west and the East Sea to the east with a 125km coastline. The province has an extremely favorable geographical position to connect with other localities of Vietnam and other countries in the region.

Quang Nam province’s economy and society develop quite well, with some years topping the central key economic region by economic scale. The economic structure has been shifted towards a better pattern. To date, the share of agriculture and forestry has been reduced to less than 11% of GDP and other sectors account for more than 89%. The budget revenue is quite high, averaging VND20 trillion a year. From the poorest province in the country, it has risen to a fairly good province and has been among 15 provinces and cities that send budget surplus to the central budget. The labor force is abundant. Many workers move from agriculture and forestry to industry and service. To date, agricultural and forestry workers account for less than 40% of the workforce.

Quang Nam has a vast land fund for project development: 30,000 ha of water surface, 6,918 ha of planned industrial land, 27,040 ha of Chu Lai Open Economic Zone, 31,060 ha of Nam Giang Border Gate Economic Zone, 11 industrial parks and 92 industrial clusters are ready to serve investors. The province also has huge potential to develop marine economy, tourism and services, coastal clean industry. It is home to two cultural heritages recognized by UNESCO: Hoi An Ancient Town and My Son Sanctuary. In addition, it has Cu Lao Cham biosphere reserve, Ngoc Linh and Song Thanh nature reserves, and many precious medicinal herbs. Quang Nam can easily connect with other localities of Vietnam and regional countries.

Regarding human resources, Quang Nam is in the period of golden population (nearly 01 million people of working age, accounting for 61% of the population). Its workers are industrious, diligent and responsible.

With respect to industrial and economic destinations, Chu Lai Open Economic Zone serves various industries and applies the highest investment incentives stipulated by the Government of Vietnam. The formation of Chu Lai Open Economic Zone, Nam Giang Border Gate Economic Zone and industrial zones has enabled many investment projects to be deployed in the province. Up to now, Quang Nam province has 11 industrial parks, Nam Giang Border Gate Economic Zone, and 92 industrial clusters. Industrial zones have fairly synchronized infrastructure, with Dien Nam - Dien Ngoc Industrial Park being one of the most successful industrial zones in the Central region.

Along with developing industrial zones and economic zones, the province has witnessed dramatic changes in growing rural industries, restoring and expanding cottage industries over the past years. Over 20 villages were recognized to have traditional and contemporary cottage industries.

Would you tell us about Korean investment attraction? How have you supported and incentivized Korean businesses and investors?

As of October 2019, Korea had 54 FDI projects with a total registered capital of US$570 million, followed by Japan with 19 projects with US$142.6 million.

Quang Nam province is always active and creative to support investors and businesses when they carry out their projects. We have established the Quang Nam Public Administration Center to receive and solve all administrative procedures filed by people and businesses under the single-window mechanism; set up working groups to support large-scale projects; carried out overall planning and specific plans to lay the legal basis for promote investment and avoid changing policies to assure investors; drastically cleared grounds for investment projects and tracked the progress of ongoing projects; formulated and promulgated investment processes, progress commitments, investment fund deposits, violation handling processes and project cancellation in a public and transparent manner.

Thanks to efforts of Quang Nam authorities to engage all resources for infrastructure development, economic development and investment environment improvement, in three consecutive years from 2016 to 2018, its Provincial Competitiveness Index (PCI) stood in the Top 10 shortlist.

How has Korean investment inflows into Quang Nam evolved in recent years? How do you explain this evolution?

In general, Korean investment inflows into Quang Nam province have been quite stable in recent years, making Korea a top investor in the province. Korea-invested projects are operating quite effectively, not only benefiting their own investors but also making an important contribution to local socioeconomic development achievements. At present, Korean companies employ more than 25,000 workers and pay an increasing tax value year after year. Korean companies strictly comply with Vietnamese laws. Notably, their projects help draw other foreign investors and domestic investors to the province. Indeed, Quang Nam province has become a reliable investment address for them.

To attract more investment fund from Korea, what have you focused on to boost investment promotion activities?

The government of Quang Nam province has launched consistent investment promotion activities to lure investment capital for development, particularly foreign sources.

- Investment promotion activities are upgraded to the annual investment promotion program to meet basic investment promotion requirements.

- Investment promotion activities are comprehensively developed, from conducting market researches, building effective promotion channels with industry and trade promotion agencies in key target countries of Vietnam like Japan, Korea, the United States, Taiwan (China) and Singapore. Data show that foreign investment promotion of Quang Nam province is effective and economical.

- Given limited budget, the province encourages and utilizes all available funding sources to carry out overseas investment promotion activities. At the same time, it integrates investment promotion activities with trade promotion and tourism promotion events.

Thanks to increasingly effective investment promotion, some major national and international brands have formed and increasingly asserted their high position in Quang Nam province such as Truong Hai Auto, Kia, Hyundai, Mazda, Peugeot, Rieker, Inax, Groz Becker, Indochina Capital, The Nam Hai, Victoria, Golden Sand and Vingroup. Notably, Chu Lai - Truong Hai automobile assembling and manufacturing complex, formed over 15 years ago, was expanded from initial 37 ha to over 600 ha and will be further expanded with many new strategic investment projects. SunGroup, T&T and FLC are also ready for more gigantic projects in the province.

Quang Nam province will selectively attract investors that make highly competitive products, join in global value chains, transfer modern technology, diversify investment forms, employ high-quality human resources, world-leading specialists, and use modern green, environment-friendly technologies to better support the green and sustainable growth strategy endorsed and pursued by the province.