Optimistic Investment Attraction into Vinh Phuc IZs

9:37:43 AM | 9/7/2023

In spite of the global economic fluctuations, investment flows into the industrial zones of Vinh Phuc province continued to grow in July 2023. The province has established itself as a secure and appealing destination for both domestic and foreign investors. In an interview with Vietnam Business Forum, Mr. Vu Kim Thanh, Deputy Director of the Vinh Phuc Industrial Zones Management Board, discussed the investment promotion and attraction results in Vinh Phuc industrial zones in July 2023, as well as the key tasks in administrative reform and support for investors and businesses.

Leaders of Vinh Phuc Industrial Zones Management Board present flowers to congratulate Piaggio Vietnam Co., Ltd. for increasing investment capital

Could you tell us about outstanding investment promotion and attraction results in Vinh Phuc province-based industrial zones (IZs) in July 2023?

Investment promotion is key to drawing investment capital into IZs. We boost investment promotion and attraction in various forms, such as organizing localized investment promotion where existing investors in IZs are encouraged to introduce new ones, and receiving and working with investors to study industrial zones. Then, we help investors understand the business and investment climate in Vinh Phuc IZs. With our efforts in investment promotion, investment attraction into the province’s IZs has an optimistic future.

In July 2023, the board licensed five projects, including two foreign direct investment (FDI) projects with US$75.5 million of investment capital and three domestic direct investment (DDI) projects with VND187.92 billion. The board also allowed six projects to increase their capital base, including five FDI projects with US$14.48 million and one DDI project with VND300.67 billion. The combined investment value in July was US$89.98 million and VND488.59 billion.

From January to July 2023, Vinh Phuc IZs attracted 13 new FDI projects and 22 existing FDI projects to invest US$418.18 million (US$215.45 million from new grants and US$202.74 million from existing projects), equal to 201% of the value a year earlier and 119% of the full-year plan in 2023. They drew eight new DDI projects and three existing DDI projects to invest VND5,116.14 billion (VND3,500.95 billion from new grants and VND1,615.2 billion from existing projects), equal to 1,183% of the value in the same period of 2022 and 171% of the yearly plan.

In August 2023, the board continued to guide investment procedures, provide information for investors seeking to study investment opportunities in IZs, and introduce the investment environment in IZs on press and media channels and through successful investors in local IZs. The board expected to license 1-2 new FDI projects and 2-3 existing FDI projects to invest US$7-10 million and draw VND200-300 billion from 2-3 DDI projects.

To achieve the above results, how does the board carry out administrative reform, support and facilitate investors and businesses? Could you please tell us about the result?

The Vinh Phuc Industrial Zones Management Board has been actively and effectively carrying out administrative reform, particularly administrative procedure reform. As of May 31, 2023, the board had settled 99.3% of administrative procedures under its jurisdiction in a timely manner. The board provides 100% of its administrative procedures at the Public Administration Service Center, and 100% of investment procedures are declared online on the national investment information system. Additionally, 100% of administrative procedures on labor are carried out quickly and conveniently. The employees at the Public Administration Service Center strictly abide by the working time and service time, manage records and documents, and update progress records accurately and scientifically.

In January 2023, the board implemented Decision 2547/QD-CT dated December 19, 2022 of the Chairman of Vinh Phuc Provincial People’s Committee on amending the Internal Process on settlement of administrative procedures on labor and employment at the Provincial Public Administration Service Center under the board’s jurisdiction; and Decision 124/QD-UBND dated January 17, 2023 of the Provincial People’s Committee on the list of civil servants responsible for guiding and receiving documents and returning the settlement of administrative procedures at the center in 2023. The board assigned three employees to work at the center. As of May 31, 2023, the board had handled 1,641 administrative records, including 1,596 records accepted and 45 records rejected. Among 1,596 settled records, 1,586 records were handled on time and lawfully (accounting for 99.3%).

Furthermore, the board has taken steps to address difficulties and obstacles in investment and business activities for businesses and investors as follows.

The Vinh Phuc Industrial Zones Management Board is committed to actively supporting, facilitating, and quickly resolving administrative procedures for investors and businesses to launch their projects, expand production and business, increase investment capital, or change investment purposes. The board has successfully supported several projects such as the project of BHFlex Vina Company, the investment project of Piaggio Vietnam (merged into Piaggio Vietnam), the project of SKYFLEX VINA (South Korea), the factory project of Kitz Corporation Vietnam, the factory project of NIDEC Vietnam Advanced Technology Company, and the Tamron project in Vinh Phuc (from Japan). The board coordinates with the Department of Natural Resources and Environment, the Department of Science and Technology, the Department of Industry and Trade, the Department of Health, and other agencies to appraise applications for investment projects.

The board has also been successful in solving existing sectoral issues such as rooftop solar power systems (Strongway Company, Thang Long Vinh Phuc Industrial Park Infrastructure Company, and Arcadyan Technology Co., Ltd), clean technology (Lam Vien Company), chemical (Dynamix Material Science Co., Ltd), and real estate (CNC Tech Joint Stock Company, Binh Xuyen II Industrial Park Company). The board has also supported the settlement of other issues such as procedures for terminating the operation of the Enevery solar energy project, procedures for ending the export processing status for Bang joo Hi-tech Company, tax rates of export processing companies (Segi Company). The board has confirmed the information of investors in industrial zones to deal with difficulties in carrying out registration procedures for duty-free goods at Vinh Phuc Customs (Branch of Ojitex Hai Phong Co., Ltd in Vinh Phuc) and confirmed the proposed conversion from “manufacturing in rented warehouse/workshop” to “Commodity storing warehouse” of Northstar Precision Vietnam Co., Ltd in Ba Thien II Industrial Park.

The Vinh Phuc Industrial Zones Management Board is actively supporting and coordinating in settling land and construction issues. The board has determined the construction area for consideration and certification of land-attached assets ownership for DST VINA Company. Additionally, the board has identified project categories based on Law on Public Investment for CNC Technology Solutions Joint Stock Company. The board is also considering factory expansion procedures for Cammsys Vietnam Co., Ltd., factory renovation procedures for Vietnam Enplas Company, investment revision procedures, land compensation, site clearance, and waste treatment facility construction for VITTO - VP Co., Ltd.

 Ba Thien II Industrial Park, Vinh Phuc province

In the remaining months of this year, what key tasks will the board take to further foster administrative reform and enhance the business investment environment to provide more favorable conditions for investors and businesses?

The Vinh Phuc Industrial Zones Management Board is committed to furthering administrative reform and upgrading the business investment environment in industrial zones. The board will continue to speed up digital transformation, apply information technology to administrative management, and enhance the operating effect of document management. The board will provide online public services, use software to administer projects, create, grant accounts, update account information, support businesses to access and use periodic reports and administrative procedures relating to investment projects on the National Investment Information System under the Law on Investment 2020. The board will also continue to receive and coordinate with relevant authorities to promptly and effectively handle complaints and suggestions from businesses about difficulties, problems, and inadequacies in the implementation of relevant investment and business regulations.

In addition, the board will intensify post-investment support to limit and prevent investment disputes. Priority is given to supporting large projects. The board will diversify forms of support such as direct support at the Provincial Public Administration Service Center, support by phone or hotline, support by text or email, support by online answers on websites, direct support by field trip surveys in industrial zones. These moves will help make the business investment environment in industrial zones better for domestic and foreign investors.

Thank you very much!

By Nguyet Tham, Vietnam Business Forum