Hai Duong Aims to Attract Eco-Friendly Investments

10:08:57 AM | 10/5/2023

Investors engaged in green projects, high technology, and clean energy, and operating in sectors such as the manufacturing industry, production and assembly of electronic components with modern, environmentally friendly lines, logistics, trade, ecotourism, and high-tech agriculture will be given priority in attracting investment. This is also clearly outlined in the Draft Planning of Hai Duong province for the period 2021-2030 and vision to 2050, as stated by Mr. Le Hong Dien, Director of the Department of Planning and Investment of Hai Duong province.

Deputy Minister of Construction Nguyen Tuong Van hands over the decision to revise the general plan of Hai Duong city until 2040 to Chairman of Hai Duong Provincial People’s Committee Trieu The Hung, and the city leaders

What is your perspective on the current status of investment attraction and business development in Hai Duong province?

In the first half of 2023, Hai Duong province granted and adjusted 41 domestic investment projects with a total newly registered/adjusted capital of VND3,418 billion, marking a 14-fold increase compared to the same period in 2022. Specifically, the province approved the investment policy for six new projects with a total registered capital of VND535 billion, reflecting a 2.2-fold increase. Additionally, it adjusted 35 projects with a total registered capital of VND2,883 billion. During this period, the province also attracted US$202 million of FDI capital, surpassing the 2023 plan by 101% and representing an increase of over 32% compared to the first half of 2022. Among these investments, the province granted licenses to 25 new projects with a total registered capital of US$146 million, while adjusting the capital increase for 15 projects with a total capital increase of US$56 million. Despite the challenges posed by the global economic recession, Hai Duong continues to achieve positive results.

The province aims to establish its own branded green index to attract investors and enhance the quality of the living environment.

As of June 30, 2023, the province attracted 348 projects, including 16 industrial park infrastructure projects and 332 secondary investment projects from 23 countries and regions. The total registered investment capital amounts to over US$05 billion, with 71 DDI projects accounting for a total registered investment capital of VND11,484 billion. Among the secondary investment projects, 260 out of 332 in the industrial parks have been invested and put into operation, reaching a rate of over 78% of the total number of secondary projects in the industrial park. The remaining projects are in the process of completing procedures to ensure their eligibility for building factories and commencing official production and business activities. FDI projects are associated with large corporations from Japan, Korea, China (Taiwan, Hong Kong), England, and others. These projects employ advanced, modern production technology while causing minimal environmental pollution. The main products manufactured include electrical and electronic items, electric cables for cars and motorbikes, garments, plastics, packaging materials, and more.

Projects that have been put into operation have generated significant industrial production value while employing workers with technical expertise appropriate for new technology. This has made a substantial contribution to the process of training human resources in both quantity and quality, thereby meeting the requirements of the economy during the industrialization and modernization period. Notably, FDI projects in industrial parks have created favorable conditions for DDI projects to access advanced production technology and modern management skills.

Considering the positive outcomes mentioned above, what measures has Hai Duong taken to promote and attract investments?

The above results are attributed to Hai Duong’s synchronized implementation of several impactful measures. The province has made a firm commitment to enhance the investment environment. In the past, attracting domestic investment capital was challenging due to issues related to regulating conditions, criteria, scale, and the allocation of land area managed by the State for independent projects. However, since September 2022, the Department of Planning and Investment has provided valuable advice to the People’s Committee of Hai Duong province, leading to the formulation and promulgation of numerous regulations and specific guidelines on project appraisal. Special emphasis has been placed on streamlining administrative procedures associated with investment project appraisal, thereby creating a conducive environment for businesses. At present, 100% of administrative procedures pertaining to investment and business are eligible for online public services at levels 3 and 4. The province is actively working toward reducing the time required to resolve administrative procedures in areas such as business registration, investment appraisal, land allocation, and work permits.

Provincial leaders have also intensified dialogues and meetings with businesses to provide direct encouragement, share insights, and proactively address challenges faced by businesses in their investment activities. Additionally, they have implemented several policies aimed at actively supporting businesses operating in the region. Furthermore, the province has established a mechanism to support newly established businesses and small and medium-sized enterprises (SMEs) while encouraging individual households to transition into business models.

Notably, the province organizes annual meetings between provincial leaders and FDI enterprises to identify the difficulties, problems, suggestions, and recommendations put forth by these enterprises. Subsequently, the province takes prompt measures to address these challenges, overcome obstacles, and provide enhanced support to facilitate improved business operations. Since the beginning of 2023, during a meeting with FDI enterprises, the Chairman of the Provincial People’s Committee reaffirmed Hai Duong’s unwavering commitment to stand united, accompany businesses, and extend strong support to investors and enterprises. The province is dedicated to creating the most favorable conditions for businesses to effectively invest in production and business activities. The province believes that the success of an enterprise is synonymous with the success of the province itself, and thus, it is committed to sharing and resolving any difficulties faced by enterprises.

What potential and advantages will be unlocked for Hai Duong province after the approval of its planning for the 2021 - 2030 period, with a vision to 2050? Which fields and areas will Hai Duong prioritize for investment attraction, and what is the expected project quality?

The draft Hai Duong Province Planning Report for the 2021-2030 period, with a vision to 2050, which has been approved by the Planning Appraisal Council, clearly stated that Hai Duong province aspires to transform into a modern and industrialized province that embraces sustainable development while preserving its rich cultural identity of the East. In particular, by 2025, it will be a modern industrial province, with a fairly synchronous socio-economic infrastructure, continuing economic transition to industry-services, and applying high technology to production and processing. The province aims at increasing real GRDP per capita at a level higher than that of the country. By 2030, it will be a modern industrial province, with an economic scale among the leading provinces in the country, with synchronous and modern socio-economic infrastructure development. It will be the driving industrial center of the Red River Delta region.

In 2022, the province’s Market Entry index reached 7.55 points, reflecting a 0.21-point increase compared to 2021. This achievement positioned the province at 4th place out of 63 provinces and cities. Notably, it was the only index among the 10 PCI subindices that experienced positive growth compared to 2021.

Currently, Hai Duong is urgently finalizing the provincial planning documents. Once the planning is approved, it will serve as the cornerstone for the province to establish specific orientations and plans for attracting investment and selecting investors. This will provide a framework for appraising investment projects. By conducting thorough investment screening, the province aims to minimize risks throughout the investment process. Emphasizing quality and effectiveness, these investment projects represent the most practical and efficient approach to rebuilding public trust, enhancing business reputation, and reinforcing the province’s position as an attractive investment destination.

Accordingly, Hai Duong aims to attract environmentally friendly investment projects. In 2022, Hai Duong ranked 6th in the country in terms of the green index (PGI). This is an encouraging result, considering the decline in the Provincial Competitiveness Index (PCI). The province’s steadfast commitment to socio-economic development towards green growth has been instrumental in achieving this impressive ranking. On February 2, 2021, the Provincial People’s Committee issued Decision 390/QD-UBND, which promulgates the List of projects attracting investment and temporarily suspends investment attraction in Hai Duong province for the period of 2021-2025. Accordingly, the province prioritizes investment projects that follow green production models and minimize environmental impact. It also refrains from approving projects with a high risk of causing environmental pollution, such as textile dyeing (weaving with dyeing), washing and grinding stages, production of leather, leather shoes and related products that include tanning, pre-treatment and dyeing in the production process, and petrochemical refining.

Moving forward, the province will persistently endeavor to implement strategic measures that foster investment attraction. These measures encompass expediting the implementation of technical infrastructure in industrial parks and industrial clusters, as well as facilitating meetings and dialogues to proactively disseminate information, address investors’ queries, and consider their recommendations. Furthermore, the province is dedicated to addressing constraints in order to enhance the Provincial Competitiveness Index (PCI).

Thank you very much!

By Thanh Loan, Vietnam Business Forum