Creating Open, Attractive Business and Investment Environment

11:10:21 AM | 10/24/2022

Thua Thien Hue province is working hard to remove "bottlenecks" in policy, mechanism, infrastructure and site clearance, and preparing favorable conditions for new investors. Mr. Le Van Tue, Director of the Management Board of Thua Thien Hue Economic and Industrial Zones, shares valuable information about this matter.

Could you briefly introduce investment, production and business performances of tenants in economic and industrial zones since the province started reopening and adapting to economic development?

Recently, more and more domestic and foreign partners have come to explore and seek investment in the province's economic and industrial zones. At present, its economic and industrial zones are housing 169 valid investment projects with a total registered capital of VND120,672 billion (US$5.1 billion), including 54 projects with VND84,186 billion in Chan May - Lang Co Economic Zone.

Despite facing difficulties, tenants in Chan May - Lang Co EZ are generally working effectively. In the first six months of 2022, their import and export value reached US$108.6 million and their revenue totaled VND2,582 billion (US$110 million). They paid VND181 billion to the State budget and created 4,430 jobs.

Some major projects are being carried out in Chan May - Lang Co EZ with progress reported as follows:

(1) Saigon - Chan May Industrial Park and Non-Tariff Zone Infrastructure Investment Project: Completing site clearance for 186 ha of land (92 ha leased). The leased area has completed demining, ground leveling and basic infrastructure construction (roads, technical facilities, trees and landscapes) and five factories have been built for rent. Currently, the investor has attracted four tenants with VND1,000 billion of investment capital, of which VND350 billion has been spent.

(2) Kim Long Motors Hue Production and Assembly Complex: Costing VND4,476 billion for construction and covering a total land area of 160ha, the project has currently completed clearance of 78ha and leased 38ha of land. The detailed construction planning and the environmental impact assessment (EIA) report was approved. It also completed geological survey and unexploded ordnance (UXO) clearance (first phase). The project is carrying out ground leveling, preparation and construction of executive office buildings.

(3) Wharf 2 - Chan May Port: The project started first-phase construction in June 2018. Currently, the investor has completed all protection embankments, wharf items, roads to the wharf and related items. The investor is currently dredging wharf-front waters and building the turning basin. The construction cost about VND450 billion. The first phase was completed and put into operation in July 2021 and the investor embarked on the second phase, which is expected to be complete in the second quarter of 2023.

(4) Wharf 3 - Chan May Port: Costing VND630 billion for construction to date, the project was decided by the Vietnam Maritime Administration to announce wharf opening to incoming and outgoing ships (cargo vessels of 50,000 DWT with reduced load) from July 2021. Currently, the investor continues to dredge wharf-front waters and passageways and will complete it in the third quarter of 2022.

Nonetheless, investment attraction into economic and industrial zones also faces certain difficulties and obstacles. For example, industrial park development mechanisms and policies are inadequate and inconsistent among Investment Law, Land Law, Environment Law and others. The interconnectivity of businesses and manufacturing clusters is weak and has limited impact on economic development. The technical infrastructure system is not synchronously invested.

After a period of stagnation due to COVID-19 epidemic, how are Thua Thien Hue province and the Management Board of Thua Thien Hue Economic and Industrial Zones stepping up investment promotion to adapt to the new context?

Reforming investment promotion methods is of great concern to the Provincial Party Committee and the Provincial People’s Committee of Thua Thien Hue and considered a core solution to increase investment inflows in the new context. In that spirit, the Management Board is advising and carrying out following solutions:

- Actively promoting investment in many forms; focusing on publicity and transparency of investment projects and their related information, as well as investor evaluation and selection criteria on mass media and websites. At the same time, organizations and individuals are rewarded for bringing investors to industrial zones.

- Completing mechanisms and policies on industrial park development by increasing decentralization and authorization from central to local levels, assigning clear and transparent responsibility and coordination of agencies.

- Improving the quality of industrial zone infrastructure construction by synchronizing technical infrastructure with public amenities and utilities for industrial zones and aligning internal and external infrastructure of industrial parks.

- The province has handed over clean ground to important, prioritized projects, encouraged investment calls and financial support for infrastructure investors in various areas such as making environmental impact assessment (EIA) reports, detecting and destroying bombs and mines, making land compensation for site clearance, and supporting labor training costs.

- Launching investment promotion close to practical reality; focus on preparing construction sites and other infrastructure for projects and addressing arising problems.

- Simplifying administrative procedures for investment, construction, land, environment by enhancing publicity, transparency of procedures and minimizing the processing time.

- Strengthening cooperation with vocational training institutions on establishment of branches in Hue; supporting investors in recruiting and training human resources for their projects.

With efforts to create an open and attractive business and investment environment, economic and industrial zones will be attractive destinations for domestic and foreign investors.

Thua Thien Hue province is focusing on clearing bottlenecks in investment and business and has established four working groups to speed up the above process. As Deputy Director of Workgroup 1, what specific solutions have you implemented?

Determined to clear bottlenecks and support projects to complete procedures, Thua Thien Hue province has established four working groups to urge, inspect, supervise, handle emerging and existing problems and speed up project progress. As the Deputy Director of Workgroup 1, I have directed relevant divisions to implement a number of solutions as follows:

First, after granting investment licenses, the Management Board guides investors to carry out the procedures on planning, construction, environment and other aspects to launch their projects. At the same time, the board advises the Provincial People's Committee to issue investor support plans to help investors to deal with these procedures.

Second, administrative procedures within its jurisdiction are provided on single-window divisions where interagency procedures are quickly and conveniently handled. For administrative procedures under the jurisdiction of central agencies, the Support Workgroup accompanies investors to reduce the appraisal and licensing time.

Third, regularly coordinating with local authorities in land compensation and site clearance; participating in dialogues with the people to soon complete site clearance.

Fourth, conducting field briefings (on quarterly or irregular basis) at projects to learn about emerging difficulties and seeking solutions for investors within their competences or report to competent authorities for further handling.

Fifth, preparing the supply of materials for leveling ground or rock for construction by licensing extraction licenses to businesses.

Sixth, coordinating with electricity, water and telecommunications suppliers to promptly invest in infrastructure projects to serve investors.

Thank you very much!

Ha Thanh (Vietnam Business Forum)