Removing “Bottlenecks” in Investment Attraction

3:25:44 PM | 9/20/2022

Phu Yen province is carrying out many solutions to enhance competitiveness, improve the business environment, and especially clear "bottlenecks" in site clearance and conversion of land use purposes to promote investment attraction. Vietnam Business Forum’s reporter has an interview with Mr. Vo Dinh Tien, Director of Phu Yen Department of Planning and Investment.

Phu Yen heavily invests in transport infrastructure development

Could you please describe the remarkable investment attraction and business development results of the province in recent years?

Phu Yen has attracted many domestic and foreign investors to explore opportunities, approach and study investment in tourism, real estate, golf, high-tech agriculture and industry.

In 2016 - 2021, the Department of Planning and Investment advised the Provincial People’s Committee to license 254 projects with a total registered capital of VND37,958 billion and 2,700 companies with a total capital of more than VND30,000 billion.

In the first six months of 2022, the province also approved seven projects with VND560 billion of investment capital and granted 299 new business licenses. Phu Yen witnessed 156 companies resuming operation, bringing total active companies in the province to 4,100 with a total registered capital of VND74,902 billion.

At the Phu Yen Investment Promotion Conference 2018, the province announced to grant investment certificates to 18 projects with a total registered fund of VND14,869 billion. How have these projects been implemented to date?

Up to now, investors have completed all procedures for their registered contents.

Specifically, two projects are completed (Investment projects for expanding the sugar factory capacity from 2,300 TMN to 3,200 TMN and Non-Betalactam factory according to European standards); five are partially completed and underway projects (KCP Phu Yen Biomass Power Plant, High-tech Industrial Dairy Farm, Car Showroom Trade Center, Dung Tien Hotel and Office for lease, Colike Phu Yen livestock farm, and Phu Yen general technical service area for transportation) and one project is under construction (Viet My A&V Hotel and Resort Complex).

Due to some difficulties, four projects were terminated. In addition, authorities are reviewing difficulties that cause projects to be terminated or relocated to other locations (Phoenix Garden High-class Urban Area, Dac Loc Hotel, dairy cow farming area, Phong Phu - Phu Yen Garment Manufacturing Center, Tuy Hoa Waste Treatment Plant, and Phu Yen Food Factory Cluster).

Central area of Phu Yen province

According to Plan 121/KH-UBND on implementation of Resolution 11/NQ-CP of the Government dated January 30, 2022, Phu Yen province targets to raise VND95 trillion for investment in 2022-2025. What specific tasks will the province perform to accomplish its goals?

The province targeted at VND95 trillion for development investment in 2021-2025 as stated in the Resolution of the 17th Provincial Party Congress (2020 - 2025 term) and the 5-year economic development plan of the province.

In response to Resolution 11/NQ-CP of the Government dated January 30, 2022, the Department of Planning and Investment advised the Provincial People's Committee to coordinate with the Vietnam National University of Ho Chi Minh City to study and develop an advisory report on socioeconomic restoration and development in 2022-2025, including the probability of fulfilling socioeconomic targets. Based on reviews, the report suggested the targeted total investment fund of VND95 trillion to fulfill or exceed the province’s plans. Then, the Department coordinated with relevant bodies to consult the province to make and launch Action Plan 121/KH-UBND dated June 20, 2022.

In order to successfully achieve its goals, the province is focusing on executing following key tasks:

- Completing Phu Yen planning for the 2021 - 2030 period, with a vision to 2050; revising the Master Plan for Nam Phu Yen Economic Zone to 2040 and to submitting it to the Prime Minister for approval in 2022; reviewing and completing district land use master plans and detailed plans for calling investment fund.

- Reforming online and offline investment promotion, especially to draw FDI capital; reviewing and building the list of projects seeking investment funds in the form of public-private partnership (PPP); removing "bottlenecks" in compensation, site clearance and land conversion procedures.

- Effectively implementing the medium-term public investment plan for the 2021-2025 period; strengthening discipline, role and responsibility of agency leaders; regularly checking, monitoring, evaluating and promptly handling difficulties to speed up the progress; coordinating with central authorities to complete investment procedures for projects under the economic recovery program, and integrating three national target programs and other local socioeconomic development programs.

What do you think about the Market Entry Index. What solutions and activities is the department currently carrying out to improve its score and ranking?

In 2021, the Provincial Competitiveness Index (PCI) of Phu Yen increased by 1.33 points and climbed seven places in the rankings, from No. 42 to No. 35 out of 63 provinces and cities. Its Market Entry Index scored 7.45 points, ranked No. 7 (down 0.94 points but up four places over 2020).

Reviewing 19 indicators of the Market Entry Index shows that indicators slightly declined in scores while others looked up significantly, with some higher than the national average like percentage of enterprises having to amend and supplement their registration documents twice or more: 19% (median: 22%); percentage of enterprises facing no difficulty in carrying out conditional business procedures: 36% (median: 41%)

To raise the Market Entry Index, the Department of Planning and Investment is working with responsible bodies and localities to perform the following tasks:

- Informing businesses to understand clearly and have solutions to increase business registration through new methods; deploying “business registration service to home”.

- Reducing the time of settling business registration documents, business update registration to lower or equal national average time.

- Consolidating and improving the quality and efficiency of document reception and delivery at the Provincial Public Administration Service Center; training knowledgeable, enthusiastic and friendly public employees.

- Accelerating the reform of administrative procedures relating to conditional business to facilitate companies to start their business soon.

What "bottlenecks" does Phu Yen province need to remove to become a more attractive, reliable and friendly destination for investors?

Currently, the biggest "bottlenecks" of the province are the progress of settling procedures relating to land, licensing, site clearance and coordination among competent authorities.

To become an attractive destination for investors, Phu Yen is focusing on improving its planning quality and effect; developing traffic infrastructure, power supply and communication systems, especially infrastructure of Nam Phu Yen Economic Zone and High-tech Agricultural Zone; closely monitoring and urging project progress, and removing difficulties in site clearance and-use purchase changes.

The province also recommends, proposes, amends and supplements regulations on investment and land in a synchronous and close manner; and provides regulations on incapable projects to reclaim granted land.

In addition, Phu Yen province continues to accelerate administrative reform, reduce the time needed to process documents, land procedures and construction investment; and speed up information technology application to administration to improve the PCI Index.

Thank you very much!

Tran Trang(Vietnam Business Forum)