Foreign Investment Promotion: Bringing Dong Nai Province Nearer to Investors

Before 2004, investment promotion was very passive, as it was carried out with the assistance from economic groups, associations, consulates, embassies, consulting companies and investors in Dong Nai. To carry out Government policies to boost economic development and attract foreign investment capital, the People’s Committee of Dong Nai Province stepped up plans for investment promotion in countries and territories that have poured capital into the province since 2004. Thus, potential investors in high-tech, supporting technologies and fundamental industries have arrived in the province. Investment promotion delegations have visited Taiwan, Japan, Singapore, South Korea, the US (twice) and Malaysia. Promotion methods of Dong Nai are diversified, such as investment forums, invitations and seminars. Dong Nai prepared detailed projects to approach potential partners. To reach optimal results, the investment promotion delegations also published brochures in the official languages of target countries, which provide an overview of Dong Nai, main investment policies and investment instruction, compact disks containing information about Dong Nai and its industrial zones, power point slideshow, business polls, brochures of industrial zone developers, and speeches from companies in target countries which are already doing business in Dong Nai.

 

Several promotion trips were very successful. In May 2005, a Dong Nai Province promotion group with 39 members organised two seminars on “investment promotion in Dong Nai” in Seoul and Busan, South Korea. The delegation sent 160 invitation letters and the South Korea Small Business Centre (SBC) also advertised the seminar. In the end, 240 attendants packed out the 200-seat hall. All attendants were very pleased, although some had to stand during the meeting. The success didn’t only lie in the number of attendants, but also in the quality of the seminars. Questions raised during the seminars showed that investors were very concerned about investment policies, investment sizes, available project area, land leasing duration, land policy, factory policy, tax policy, asset settlement in case of project difficulty, asset mortgage for bank loans, human resource supply and services at industrial zones. Especially, they wanted information about the relationship between employers and trade unions. Apart from information provided by provincial leaders, the answers of South Korean companies doing business in Dong Nai were the most helpful. Mr Ryu Jae-Mok, General Director of I.S.A Company and Chairman of Korea Business Association in Dong Nai; Mr Nam Taek- Bom, former Director General of LG Vina Company; Mr Ma Jung -Rak, General Director of Saigon Steel Company; Mr Chung Sang-Gil, former General Director Cho Hung Vina Bank and many others voluntarily introduced Dong Nai to attendants. Mr Nguyen Van Mot, chairman of Dong Nai People’s Committee, called them Korean volunteers. Mr Park Yen-cha, Chairman of Taekwang Vina Group and Honorary Consul General of Vietnam in Korea said, “We have operated in Vietnam for 10 years and always received assistance from provincial leaders. In fact, no Korean companies in Vietnam have operated at a loss. Currently, the investment environment in Vietnam, in Dong Nai in particular, still has several difficulties but it will be ideal in the next 10 years. If you are late, there will be no room for you.”

 

The United States visit on March 29, 2006 was the first attendance of the provincial officials at a seminar in Citrus Club Convention Centre, Orlando City, Florida. This was the 6^th annual seminar on seaports and airports held by the Orlando World Trade Centre. Attendants came from almost of US companies[SLG1] . Ms Bo Ngoc Thu, Director of Dong Nai Department of Planning and Investment, introduced the province’s economic potential, such as Long Thanh international airport project, Phuoc An seaport project and bridge construction to link District 9 of HCM City with Nhon Trach City of Dong Nai. She also presented investment incentive policies for foreign investors. She ended her speech with “Welcome to Dong Nai, a safe and friendly place for all investors,” and added that the long-standing presence of leading US companies like Gannon, Cargill and Nike was clear evidence of Dong Nai’s solid investment environment. During the interval, Dong Nai-based firms initiated contact with US companies to introduce opportunities and invite them to share the benefits of Vietnam’s southern economic zone, in which Dong Nai is an integral part. Speaking at the seminar, Mr Byron Sutton, Chairman of Orlando World Trade Centre said, “This is the first time a Vietnamese delegation has attended our seminars. We highly appreciate this initiative. I think, with the favourable conditions given by World Trade Centre Orlando, International Convention Centre and Orlando Airport, the trade relationship between Florida and Dong Nai will soar in the coming years. We are very impressed with your airport project. It will create a centre for regional development. Certainly, several businesses in our association are very keen on this project.” Right after the seminar at Orlando World Trade Centre, the delegation flew to Las Vegas. The delegation organised a seminar called “Business prospects in the Asia-Pacific” in Los Angeles on April 3 and 4 to introduce investment, trade and tourism potential. In addition, the delegation met authorities of the Airport and Port of Los Angeles and officials of South California University.

Although specific investment figures have not been calculated, the promotion activities introduced Vietnam’s image and foreign investment attraction policies (foreign investors were often unaware of these), presented investment projects in Dong Nai, set up relationships with many foreign organisations (embassies, consulate generals, business associations, and foreign organisations in Vietnam), Vietnamese organisations in foreign countries (embassies and consulate generals), and potential investors in foreign countries. After the investment promotion programme, Dong Nai has received many new investors to explore the investment environment and opportunities, and some of them have made investment decisions.

In 2007,Vietnam’s accession to the WTO and a series of meetings between Vietnamese leaders and leaders of other countries raised Vietnam’s visibility on the international arena and channelled a new investment wave into Vietnam. Under this context, Dong Nai has been well-prepared for infrastructure and industrial zones. Since early 2007, Dong Nai frequently met business delegations from the US, Europe, Brunei, Malaysia and Singapore, and leading finance and banking groups like HSBC and Prudential, which wanted to develop business in the province.