2:59:31 PM | 30/7/2007
In recent years, Dong Nai is leading in FDI attraction. Vietnam Business Forum interviewed Ms. Bo Ngoc Thu, Director of Dong Nai Planning and Investment Department.
Will you please, tell us about investment in the province in 2006 and first half of 2007?
In 2006 and first half of 2007, the province continued successful investments, shifting more to services and facilitating industrial development. In 2006, FDI was US$1,095 million (96 new projects and increased capital in 121 projects), while in the first half of 2007, it was US$618.8 million, 46.12 per cent more in capital, 5 per cent more in projects and 51.56 per cent of the 2007 plan, with 62 new licenses, registered capital of US$326.4 million, and increased capital for 49 licenses worth US$292.4 million. By June 2007, the province has 825 FDI licenses with registered capital of US$9,581 million from 32 countries and territories, led by Taiwan, the Republic of Korea, Japan, Malaysia and Thailand.
In domestic investment in 2006, there were 1,100 new private companies with registered capital of VND3,300 billion and 420 enterprises increasing capital by VND2,200 billion. In the first half of 2007, there were 650 new enterprises with registered capital of VND2,500 billion, 220 enterprises with additional capital of VND1,900 billion, and 15 projects granted licenses with investment capital of VND2,488 billion. By June 2007, there were 5,700 enterprises with registered capital over VND20,000 (including additional capital).
In general, the industrial sector accounts for most of the investment capital. Some projects as Bien Hoa General Hospital (250 beds), a housing project, and high-rise buildings in Bien Hoa and Nhon Trach, have developed new areas and increased the service ratio of GDP.
How does administrative reform help investors get licenses and implement projects?
Administrative reform in investment is our first priority. One-stop shop has been applied. Local and foreign investors can directly contact the IZ Management Board for investments in industrial zones, or the Planning and Investment Department for investments outside industrial zones. These two offices will advise Dong Nai People’s Committee on solutions to investor’s problems.
In 2007, the province will continue administrative reform in the central government and at the same time create favourable conditions for investors. In particular, the province has reviewed implementation of one-stop shop at all levels to overcome remaining hurdles. Currently, the Planning and Investment Department and IZ Management Board are co-ordinating with the Taxation and Police Departments to grant business licenses, taxation serial numbers and stamps, and to implement related laws and decrees for local and foreign investors. With the guideline “going side by side with businesses,” concerned authorities will solve problems with clarity, transparency and speed.
How is the investment flow in 2007?
Experts believe that in 2007 the investment flow into Vietnam will be quite strong. I share that view. However, regarding Dong Nai, I think investment will be a little higher than 2006, as investors will find localities most favourable for their investments and Dong Nai is not the only destination in Vietnam. Dong Nai has attracted over US$1 billion investment each year. It is important that investment quality has improved, less in garments and footwear and more in auto parts and other equipment. Modern equipment and technology save the workforce. This is in conformity with the Dong Nai Party Committee’s resolution on attracting investment in 2006-2010.
How will you mobilize resources for social development?
From now to 2010, Dong Nai will continue to attract FDI, especially from world leading companies, to obtain modern technology on an equal footing between local and foreign investors. As far as I know, Dong Nai People’s Committee is studying policies and mechanisms to encourage the development of local businesses, for instance: assisting them in trade promotion, training staff, upgrading websites with information on investment and high priority industries, support on land rental; encouraging training, especially managers and skilled workers; allowing FDI enterprises to open training centres for high quality technicians and trainees; promoting investment in the financial sector, especially investment funds of foreign countries; increasing investment in upstream industries and manufacturing. In conjunction with Vietnamese missions abroad, the province will provide information on its investment environment, priority areas and businesses.
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