Phu Yen Economic Zone: Preparing Best Conditions to Welcome Investors

10:02:20 AM | 9/22/2022

With an effort to remove bottlenecks in terms of policy mechanisms, connected infrastructure and ground clearance, Phu Yen province is preparing the most favorable conditions to promote investment attraction, especially projects into the Nam Phu Yen Economic Zone (EZ). This is shared by Mr. Nguyen Xuan Hung, Director of Phu Yen EZ Authority.  

Nam Phu Yen EZ is expected to create a great attraction for investors in the near future, so what is the factor that creates this attraction, sir?

First of all, Nam Phu Yen EZ has synchronous traffic infrastructure: airport, national highway, Deo Ca Tunnel, North-South railway, Vung Ro Port, Bai Goc Port, and coastal economic corridor link closely with economic regions in the country and internationally.

Specifically, the Nam Phu Yen EZ has a direct relationship with the provinces in the South Central region through the national highway 1A system, the national railway, and with the provinces of the Central Highlands through the National Highway 25 (with Gia Lai), national highway 29 (with Dak Lak). Nam Phu Yen EZ is also located near Tuy Hoa Airport, conveniently connected to Van Phong EZ (North Khanh Hoa), which can support each other on the basis of forming Van Phong - Vung Ro port cluster. This is one of the main lanes to the  East Sea for the Central Highlands.

Implementing the Resolution of the 17 Provincial Party Congress, Phu Yen Provincial Party Committee issued Action Program 10-CTr/TU on August 18th, 2021 on marine economic development associated with promoting investment attraction, especially Nam Phu Yen EZ. On that basis, the Provincial People's Committee issued Plan 219/KH-UBND on December 21, 2021 to implement the Action Program 10-CTr/TU with the goal of: “…exploiting the potentials and strengths of Nam Phu Yen EZ and industrial parks (IPs); encouraging investment attraction in the fields of high technology, supporting industries, digital technology; attracting investors with economic potential; projects of large scale, quality and efficiency, creating good effects for the investment environment...” On that basis, the Authority is actively coordinating with departments, sectors and localities to advise and implement many solutions to improve mechanisms and policies, promote planning, invest in infrastructure and strengthen investment attraction.

Investment projects in Nam Phu Yen EZ enjoy incentives and investment support in terms of corporate income tax; land rent exemption or reduction; and import tax, according to the Government's regulations. Moreover, the process of administrative procedure reform in Phu Yen has been promoted and produced practical results. The Authority of the EZ has always actively coordinated with other departments, sectors and local authorities to well implement the "one-stop-shop", "inter-agency one-stop shop" mechanisms in handling administrative procedures in order to create a convenient and transparent investment and business environment.

In recent years, the province has stepped up investment attraction activities, so there have been many big investors interested in learning and proposing investments in Nam Phu Yen EZ such as: Hoa Phat, N&G, Ecoland, Hung Thinh and Kien A. With many large-scale projects, these will be important catalysts to attract investment projects in Nam Phu Yen EZ.

What do you think about the results of investment attraction and the performance of enterprises in IPs and EZs in recent years?

Accumulated to June 2022, Nam Phu Yen EZ and IPs in the province attracted 117 investment projects with a total registered land area of 449.78 hectares, a total registered capital of VND 10,589 billion and $US35.78 million. The average occupancy rate of operating IPs is 87.48%, currently there are 86 projects in operation.

In 2021, enterprises in IPs created an export turnover of more than $US190 million (up 24.4% in 2020), contributed to the budget of VND220 billion (up 42% in 2020) and created close to 10,000 jobs. Enterprises in IPs and EZs contributed to the economic restructuring of the province in the right direction, forming a fairly large production force, strongly promoting the province's socio-economic development.

Implementing the policy of promoting economic recovery of the Government and the province, what solutions and activities has the Authority advised implementing to remove obstacles of businesses and investors, speed up project progress and promote production - business activities?

On June 20, 2022, the People's Committee of Phu Yen province issued Action Plan 121/KH-UBND on the implementation of Resolution 11/NQ-CP dated January 30, 2022 of the Government on socio-economic recovery and development program. On that basis, the Authority is actively propagating and mobilizing businesses in EZs and IPs to focus on effectively implementing measures to prevent and control the COVID-19 pandemic and at the same time creating the most favorable conditions for businesses to expand their production and business activities.

The Authority also accelerates the implementation of adjusting the Nam Phu Yen EZ Master Plan to 2040; deploying the formulation of 1/2000 construction zoning plans, 1/500 detailed construction plans in functional areas to orient long-term development and serve as a basis for attracting investment, gradually shaping the space development of Nam Phu Yen EZ.

The Authority also promotes administrative procedure reform, especially in land, investment and construction, and prepares necessary conditions in terms of infrastructure, premises, and human resources to meet the needs of potential investors.

Could you offer some evaluations on the quality and effectiveness of the administrative reform of the Authority over the years? What efforts is the Authority making to improve the score and maintain the ranking of the administrative reform results in 2021 (ranking 01/19 departments and sectors)?

In 2021, the EZ Authority was ranked 1st in 19 departments, agencies and sectors. To achieve that result, administrative reform has always been paid special attention by provincial leaders and the Authority. The Authority has regularly reviewed and simplified administrative procedures, promoting the use of information technology to help investors access online public services at level 3, 4, and holding periodic dialogues to promptly solve difficulties, problems for enterprises in the process of production and business.

Implementing Decree 35/2022/ND-CP dated May 28, 2022 of the Government on regulating the management of IPs and EZs, effective from July 15, 2022, the EZ Authority will fully implement all contents of the Decree, in order to promote investment attraction and create a transparent investment environment.

In the coming time, the Authority will continue to implement many solutions to improve the quality and efficiency of administrative reform. Implementing Plan 31/KH-UBND dated January 28, 2022 on the review and assessment of administrative procedures in 2022 of the Provincial People's Committee, the Authority issued Plan 07/KH-KKT on February 14, 2022 on reviewing and evaluating administrative procedures in 2022. The leaders of the Authority have thoroughly mastered and directed specialized departments to seriously review and evaluate administrative procedures, especially highlighting the responsibilities of heads, civil servants and public employees in the direction, administration and implementation of administrative reform, frankly acknowledging the limitations to take timely remedial action.

Thank you very much!

Thanh Loan (Vietnam Business Forum)