Increasing Investment Inflow, Creating New Driving Force for Economic Growth

10:21:20 AM | 4/26/2021

Ending the 2016 - 2020 term, besides achievements in socioeconomic development, Tay Ninh province also obtained outstanding results in investment attraction, especially in FDI attraction. Director Trinh Ngoc Phuong of the Department of Planning and Investment said Tay Ninh province is winning greater trust and satisfaction of businesses for its open, transparent and attractive investment environment, investment incentive policies, friendly and enthusiastic government. Duy Anh reports.

Could you please introduce outstanding results of investment attraction of Tay Ninh province in the past term? What are the importance and contributions of investment projects, especially FDI projects, to economic development and social security of the province?

The resolution of the 10th Tay Ninh Provincial Party Congress defined the need to make clear progress in administrative reform and investment environment improvement; consistently apply investment incentive policies, create a healthy and open environment to draw investment resources. From this approach, in the past five years, the province’s investment promotion and attraction has made clear progress and striking breakthroughs. Accordingly, Tay Ninh participated in many domestic and foreign promotion events to actively contact and entice investors. Its solutions for a better business investment environment, mostly focus on reducing and simplifying administrative procedures, ensuring publicity, transparency and accountability of State administrative agencies. From 2016 up to now, the Provincial Competitiveness Index (PCI) ranking tended to move towards the group of good performers. In 2019, it ranked No. 15 out of 63 provinces and cities.

The domestic and foreign investment value reached US$6,284 million in the 2016-2020 period, doubling that in the 2010 - 2015 period, of which 366 fresh projects invested US$2,867 million and VND38,572 billion (129 FDI projects and 237 domestic projects). By 2020, the province had 330 FDI projects with US$7,570 million of investment capital and 565 domestic direct investment (DDI) projects with VND77,302 billion. Outstandingly, in the past period, the locality attracted 10 solar projects which registered to invest VND19,713 billion and one tourism development project of VND3,840 billion.

Domestic and foreign investment projects, especially FDI projects, are considered an important resource for industrialization-driven economic restructuring; form a number of key industries such as yarn production, fabric weaving, apparel, footwear and tire, thus creating a driving force for local socioeconomic growth in recent years. In addition, the attraction of investment projects has helped significantly increase jobs for local workers while raising incomes and livelihoods for people.

In order to draw more investors, how did Tay Ninh province endeavor in the past time?

In order to magnetize investment flows, Tay Ninh focused resources on building infrastructure, especially transport infrastructure, training human resources, calling for investment fund for industry, tourism and high-tech agriculture; accelerating administrative reform, simplifying procedures, creating a favorable, transparent and friendly investment environment; strengthening inspection and examination of public service to strictly handle cases of harassment and negative actions.

Incoming investors are provided with the best support and care, featuring quick and transparent investment procedures. Their difficulties in the investment process and project implementation are handled under the single-window mechanism. And, in case of necessity, the department reports directly to the Chairman of the Provincial People's Committee for solution. With quick and effective support, many investors increased their investment fund to expand their operations in the province.

In addition, Tay Ninh province signed socioeconomic development cooperation programs with many provinces, cities and organizations nationwide. These comprehensive cooperation programs produced initial results of project establishment; and put forth investment for new important traffic route development. Many big firms came to study and carry out their projects in Tay Ninh province, including Vingroup, Sungroup, TTC Group, Vinamilk, Saigon Co-op and Nafoods. The presence of significant projects has created new economic growth momentum, generated more jobs and raised the budget revenue.

Besides investment attraction, how did the province develop the private sector and economy in the past term?

The province strictly carried out Resolution 19/NQ-CP and Resolution 02/NQ-CP of the Government on continued improvement of the business environment and national competitiveness and attained positive results. The application of the single-window mechanism for business establishment has helped reduce the time to carry out local administrative procedures, create a favorable business environment, support startups and improve competitiveness.

In the 2016-2020 period, Tay Ninh had 2,800 new enterprises with a registered capital of VND26,000 billion, bringing total enterprises in the province to 5,000. The province always facilitates the private economic sector to have equal access to resources, especially concerning the implementation of investment projects; make land-use and construction plans and supporting policies publicly available for businesses and business households; effectively implement bank - business connection programs aimed to help capital-short companies; and support the development of the collective and cooperative economy where priority is given to cooperatives that adopt technological application, transfer and innovation, develop intellectual property, rent land, and facilitate cooperatives to use trademarks and geographical indications.

To date, Tay Ninh has basically completed equitizing State-owned enterprises (SOEs). The province wrapped up the State capital divestment plan for the 2017 - 2020 period; carried out all contents in SOE restructuring plans, and increased financial and profitability indicators year after year.

In order to attract capital sources into the province, especially the FDI fund, to generate a driving force to foster socioeconomic development in a fast and sustainable direction, in the coming time, what important solutions will Tay Ninh province focus on?

The province will focus on renewing contents and methods of investment promotion to enhance quality and efficiency. At the same time, the province will boost the investment environment, foster administrative reform, with a priority to make breakthroughs in e-government construction toward modernity and efficiency; complete the three-layer single-window mechanism for settling administrative procedures; upgrade the provincial data integration center; build and complete the Provincial Public Administration Center and the Socioeconomic Monitoring and Operation Center; simplify procedures to reduce the time required for processing documents filed by organizations and individuals. The province will strive to bring its PCI to the group of good performers, raise administration indicators and add more administrative procedures of Category 4 online.

The province will continue to perform the tasks set out by the Government in Resolution 19/NQ-CP and Resolution 35/NQ-CP on improving the investment environment and enhancing national competitiveness; upgrade the performance of hotlines to receive business feedback and guide them to deal with emerging difficulties, thus building their trust and confidence. At the same time, the province will carry out cost-cutting efforts, support innovative and effective startups; and ensure transparency and fairness in access to policies, especially tax policies and land preferences, for domestic and FDI enterprises.

Source: Vietnam Business Forum