Thinh Phat Manufacturing and Trading Co. Ltd. (THIPHACO), formerly Thinh Phat Electrics & Cables Factory, was established in 1987. THIPHACO is listed among five leading electric wire and cable producers in Vietnam partly thanks to its all-out efforts in the recent 18 years of development. THIPHACO has poured much investment into building industrial zones. VIB Forum has conducted an interview with Vo Tan Thinh – THIPHACO's Director concerning the construction on Thinh Phat industrial complex and his constructive ideas on Vietnamese entrepreneurs in the process of economic integration.
Would you mind giving us a general view on the Thinh Phat Industrial Complex?
Approved by the provincial People's Committee in decision No. 3141/2005/QD-UBND dated on August 8, 2005, the project to build Thinh Phat industrial complex is now being carried out in Luong Binh commune of Long An province's Ben Luc district.
The Thinh Phat industrial complex shares the same line with Ho Chi Minh City's outlying Binh Chanh district (about 25km from inner HCM City). Lying on the banks of the Vam Co Dong river, the complex is capable of sheltering ships with capacities of around 1,000-1,5000 tons. The project was kicked off in May last year. An investment of VND132 billion was injected into the first phase of the project, which has been conducted on more than 75ha of land. The first phase is scheduled for completion in the first quarter of next year. At that time, investors will be able to lease land for operations. The modern infrastructure facilities include roads, trees, lighting networks, water drainage and supply systems, telecommunications, medium-tension electricity lines, and other services such as banks, healthcares, storages, trade centers, and petrol stations. The Thinh Phat industrial complex will be a light industrial zone which is expected to have little impact on environment, paving the way for the local potential industries with emphasis on household appliances, electrics, processing, and hi-tech industry.
How can Thinh Phat carry on land leasing and licensing procedures and incentive investment policies?
Regarding the slogan “Investors’ Strategic Vision", THIPHACO will create favourable conditions to support investors in Thinh Phat industrial complex. The company pledges to offer licenses to investors within three to five days after receiving their legal registration forms. The investors will have a full right to access incentives regulated in the Decree No.164/2003/ND-CP which makes detailed provisions for implementation of the Law on Corporate Income Tax and those issued in Decision No. 2613/2004/QD – UB made by Long An People's Committee: free from income tax within the first two years of operation and just 50 per cent for the following two years. In addition, we have also launched several programs to help investors promote their images such as conducting trade promotion activities at both foreign and domestic markets…
What challenges have Thinh Phat encountered over the years? And can you provide some information about your company's future orientation?
THIPHACO is now building an industrial complex in the southwest of Ho Chi Minh City. In order to lure more investment into the complex, authorities in Ho Chi Minh City and Long An province are asked to join hands in working out more incentive policies for investors and in implementing projects on traffic, means of communications, IT, and transport services… In addition, further incentives in interest rate and capital are also required.
Having been granted the title "Saigon Entrepreneur 2005", have you got any comments to improve the competence of Vietnamese entrepreneurs?
In order to promote trade liberalization by gradually removing tariff barriers, Vietnam has been actively implementing AFTA tariff requirements, regional AFAS obligations, and the AIA (ASEAN Investment Area) provisions and has also closely followed the WTO integration route. The move also poses a challenge to Vietnamese enterprises. Thus, it is essential for the government to accomplish administrative procedures and soon issue relevant documents in order to help domestic businesses further penetrate into the world economy.
Reported by Song Phuong
Vietnamese
