Ha Giang Improving Business Climate, Facilitating Enterprise Development

9:47:58 AM | 7/26/2021

To make transformational changes in perception, action, spirit and attitude of administrative agencies and public employees in service of people and enterprises, companionship and sharing is defined as a key solution to enhance the business investment climate, said Mr. Luong Van Doan, Director of the Department of Planning and Investment of Ha Giang province, in an interview granted to Vietnam Business Forum. Duy Binh reports.

According to the PCI performance in 2020, the "market entry" index got relatively good score (7.69 points) but its ranking dropped steeply (from 14th to 37th position out of 63 provinces). How will the Department of Planning and Investment further enhance investment promotion and business support to raise this index?

The market entry index of the Provincial Competitiveness Index (PCI) is calculated on main component criteria relating to procedures concerning business registration, business establishment and official business operation.

In 2020, the market entry index of Ha Giang province scored 7.96 points, ranked No. 37 out of 63 provinces and cities, down 0.15 points and down 23 places in the ranking as compared to 2019. The reason why the province’s PCI standing decline in 2020 was changes in business registration: The number of listed and publicized procedures declined 7% and good information technology application sank 41%. However, some component indicators improved over 2019, including clear and complete guidance of public employees growing by 8%, and enthusiastic and friendly employees by 13%. At the same time, authorities diversified methods of submitting documents when the rate of companies registering their business via electronic environment, public administration centers and post offices rose by 23%. The time of changing business registration was shortened from 5 days to 2.5 days. In order to improve the market entry index, the Department of Planning and Investment has stepped up support for businesses, handling administrative procedures after granting business registration, so that enterprises can soon enter the market and implement investment projects.

Could you please briefly introduce outstanding results of investment promotion Ha Giang province has made in recent years?

In 2016 - 2020, Ha Giang province achieved good results in investment promotion by applying consistent solutions. This activity helped local socioeconomic development.

In 2020, the COVID-19 epidemic caused adverse impacts on socioeconomic development, including investment promotion, in Ha Giang province. Tourism and trade (associated with investment promotion) was restricted in Vietnam and in the world. Ha Giang province still deployed many solutions to support businesses and handle investment procedures for implementation of projects. Regarding domestic investment, the province granted investment licenses to 10 projects with VND896 billion in 2020: One hydropower project (VND446 billion), two mining projects (VND24 billion), two medicinal herb projects (VND35 billion), four trade and service projects (VND370 billion), one project engaged in other industry (VND20 billion). Besides, the province allowed 25 existing projects engaged in hydroelectricity, afforestation, pharmaceuticals, minerals and other fields to increase their registered investment value.

In ODA funds, the province succeeded in attracting the US$9.54 billion (VND216 billion) "Grassroots health service delivery system construction and development investment project” funded by the World Bank (WB) in 2020.

As for FDI funds, Ha Giang province presently has seven FDI projects with a combined registered capital of US$5.3 million. Despite being closely monitored in execution, the progress of FDI-funded projects remained slow. Therefore, the province has reviewed and urged them to speed up their progress while resolutely removing their investment licenses if they fail to keep their investment promise, to give resources for capable investors.

Could you please tell us about the investment attraction approaches of Ha Giang province in the coming period? What are key areas of investment?

Based on its potential and advantages, Ha Giang province set the following economic development targets: Build Ha Giang City into a political, economic, cultural and tourist center, a second-grade urban area by 2025; accelerating rapid and sustainable tourism development in four districts in Dong Van, Meo Vac, Yen Minh and Quan Ba rock plateaus; developing organic agriculture in combination with ecotourism in Bac Me, Vi Xuyen, Bac Quang, Quang Binh, Hoang Su Phi, Xin Man and other districts. Accordingly, Ha Giang province issued a list of projects in search of investment capital, and introduced solutions for a better business investment climate to entice domestic and foreign investors into the following areas:

(i) Agriculture: Attracting investors to develop value chains, upgrade gardens and farms, accelerate new rural development, give priority to high-tech investment projects, build concentrated farming areas, develop locally advantageous crops and livestock and process agricultural products.

(ii) Tourism: Developing tourism into a key economic sector. In the short term, the province will encourage all economic sectors to invest in developing a synchronous tourism infrastructure system, diversifying professional tourism products; attract investment projects in community-based tourism in line with conservation and promotion of sustainable cultural heritages, historical sites, scenic spots, ethnic cultural identities, and traditional handicraft villages. In the long term, the province will draw investment capital into high-class tourism infrastructure.

Government Committed to Siding with Businesses

Taking the prosperity and success of investors as a measure of provincial dynamism and development, Ha Giang province has actively reformed administrative procedures, improved the investment climate and supported business development to attract investors into three key socioeconomic development pillars: Commercial agriculture, tourism and cross-border economy, with the principle of "The government is committed to siding with businesses".

To unlock its potential and strengths, Ha Giang has focused on completing master plans; effectively applied investment incentive policies; reformed administrative procedures, created an open investment environment, and fostered economic development. Specifically, the province established a steering committee for implementation of action programs, improved the Provincial Competitiveness Index (PCI), and hosted the monthly "Business Coffee" Talks to capture information, exchange and share business experiences in solving emerging hardships in business in the province; implemented the single window mechanism to handle administrative procedures on business registration and  investment registration, on tax, on land, and on settlement of complaints lodged by citizens and business community; supported labor training; reviewed the regulatory system to propose amendments, supplements, annulments and cancellations of conflicting and inappropriate documents in order to streamline handling processes, reduce the time of settling administrative procedures, reduce administrative costs, ensure publicity and transparency and improve the responsibility of administrative agencies.

(iii) Cross-border economy and industry: Attracting investment capital to build and operate technical infrastructure of industrial zones, attracting investment fund for service, logistics infrastructure and processing projects in Thanh Thuy International Border Gate Economic Zone, Xin Man Border Gate and other border gates in the province. Ha Giang province expects to become a major traffic hub and a bridge for Yunnan province (China), northern Vietnam, ASEAN countries and Northeast Asian countries. The province will further attract projects specialized in supporting industries, high-tech industries, and energy industries, with a focus placed on clean energy and renewable energy.

(iv) Urban infrastructure: Attracting investment capital into residential projects, new urban areas, sports complexes, amusement parks, cemeteries, and other urban infrastructure projects in Ha Giang City, districts and communes/townships as planned.

What breakthrough solutions will Ha Giang province adopt to speed up investment attraction?

To follow the Government-backed investment attraction approach, based on the local potential and advantages, Ha Giang province is determined to perform well the provincial planning for the period of 2021-2030. The province has issued a resolution to promote investment attraction for the period 2021-2025, promulgated annual investment promotion programs, concretized preferential policies and investment support of the Central Government and fostered international relations.

In the coming time, Ha Giang province will need to accelerate administrative reform, reduce the settlement time, create a fair business competition environment, and provide favorable conditions for local enterprises to make effective investments.

Investment promotion needs to be further enhanced, including regular communications on investment environment, incentive policies, investment potential and opportunities, socioeconomic database, investment support policies. These contents will be prepared in videos, clips, documents and publications.

The province will hold regular dialogues and working meetings with local enterprises to capture their expectations, and actively and promptly remove difficulties against them. The province will strengthen close coordination among relevant bodies to better support investors, provide information, conduct field surveys, and offer consultation and guidance for investors on their project procedures. It will actively research and assess market potential, trends and investment partners, contact and work with international organizations, large corporations, other domestic and foreign investors seeking investment opportunities in the province.

Thank you very much!

Ha Giang Investment Attraction Committee Established

The Provincial People's Committee of Ha Giang province recently signed Decision 1170 establishing the Investment Attraction Board. The Committee will receive information on proposals, recommendations and reflections sent by enterprises and investors; and report to the Provincial People's Committee, the Chairperson of the Provincial People's Committee to direct, settle or arrange face-to-face meetings and discussions in case of necessity. It will advise and assist the Provincial People's Committee and the Chairperson of the Provincial People's Committee to monitor, inspect, supervise and urge concerned agencies in handling administrative procedures and investment incentive policies; settle proposals and recommendations of businesses and investors; and perform tasks of investment promotion and management assigned by the Provincial People's Committee and the Chairperson of the Provincial People's Committee. Committee members are allowed to work directly with representatives of investors and enterprises; and officials of related agencies. The Committee will request district-level authorities to report, provide information and documents relating to its work, and carry out investment promotion for local projects. The Committee comprises six members, led by Mr. Nguyen Van Son, Deputy Secretary of the Provincial Party Committee and Chairman of the Provincial People's Committee.

Source: Vietnam Business Forum