3:01:58 PM | 23/9/2009
With available strength and potential, Dong Nai is seen as a reliable destination for investors, particularly those from the US, said Director of the provincial Department of Planning and Investment Bo Ngoc Thu in a recent interview with a Vietnam Business Forum reporter.
Could you give your comments on Dong Nai’s investment attraction so far this year?
The year of 2009 is a difficult time for Vietnam in particular and the world in general due to the harsh impacts of the global economic slow down. Not only affected by the world economic slump, Vietnam had been hit by inflation earlier. Therefore, in a sustainable development orientation, Dong Nai has halted licensing of new projects in industrial parks which do not have waste treatment facilities. These have weakened the investment inflow in the province. However, thanks to the efforts to improve the investment environment and great potential, Dong Nai has still made encouraging results in attracting investment so far this year.
For business registration:
In the first seven months of this year, Dong Nai licensed 1,245 non-state enterprises worth a total registered capital of VND5.18 trillion. In the same period, the province allowed 344 existing businesses to raise their capital by VND2.7 trillion, bringing total investment of local non-state enterprises to VND7.89 trillion between January and July, fulfilling 65 per cent of the year target, but down 19 per cent on-year. As of late July this year, the province licensed 9,250 non-state enterprises worth more than VND58 trillion.
Attracting domestic investment capital:
In the first seven months of this year, Dong Nai reported a total domestic investment capital of VND22.7 trillion from both newly-licensed and existing projects’ capital rise, up 3.7 times on-year and surpassing 13.5 per cent of the full-year target. By the end of July, the province licensed 166 domestically-invested projects worth VND71.32 trillion.
Attracting foreign direct investment (FDI):
Between January and July this year, the province’s total FDI capital reached US$479 million, down to 80.4 per cent on-year and meeting 24 per cent of the full-year target.
The total capital came from 19 newly-licensed projects and the capital increase of 20 existing projects. As of late July, the province has 967 valid FDI projects valued at US$15.17 billion, including US$7.24 billion of already disbursed capital. The province’s FDI picture is forecast to be bright this year as the province considers several potential projects.
To date, the province has 29 industrial parks, including 22 built with necessary infrastructure and the others are on the way to completing site clearance and infrastructure construction. As many as 3,601 hectares of local industrial parks have been filled, accounting for 60 per cent of the province’s total area of parks. The province has lured in hi-tech and service projects, including those to build new urban areas and trade and service centres besides traditional industrial projects. This shows the change in FDI structure in the province which tends to focus on the service sector in line with the province’s investment promotion strategy.
How have the province’s administrative procedures been improved to support investors?
Since the early 1990s, Dong Nai has carried out the policy “authority goes along with enterprises”, applied the one-door policy and always helped to timely deal with businesses’ difficulties in line with the Law on Enterprises and other related laws. In addition, Dong Nai has also boosted ISO management for public administrative works. Administrative reform has continued to be accelerated. The province has intensified the fight against corruption and wastes. The local Department of Planning and Investment has proposed the People’s Committee to continue administrative reforms, improve granting APEC entrepreneur cards and other regulations. All of these efforts aim to assist investors’ operations.
How many US investors are operating in Dong Nai? How have their projects contributed to the local socio-economic development?
The US is a big market, home to giant and hi-tech investors. US investors care about administrative and intellectual property right protection, post and telecommunication infrastructure, airports, ports, finance, banking, realty, entertainment areas, industrial parks, warehouse and depot business and container transport. Therefore, Vietnam’s WTO entry has lured in more US companies in the country in general and Dong Nai in particular. Currently, the province has attracted 32 US investors with projects totaling more than US$232 million, excluding indirect investment via other countries. The province highly appreciates US investors for their considerable contributions to its socio-economic development.
What will the province do to attract more US investors in the coming time? What do you want to say to US companies who come to the province for investment opportunities?
To introduce Dong Nai’s investment environment and image and to pull in the US’s projects in hi-tech and supporting industry sectors, Dong Nai held two investment promotion conferences the US in 2005 and 2006. However, the events have brought modest results. In the time to come, the province will continue boosting investment promotion in the US. The locality has also focused on technical and social infrastructure development and human resource training. Dong Nai has kicked off key infrastructure projects like Nhon Trach bridge, HCM City- Long Thanh - Dau Giay highway, Phuoc An seaport, Long Thanh international airport, Bien Hoa-Vung Tau expressway, Nhon Trach new urban area, hi-tech parks, industrial and agricultural complex, bio-technology application centre and other works. These will help investors implement projects in the areas of hi-tech, supporting industry and processing industry, hi-tech agriculture, environment, culture and sports.
Reported by Trung Dung
Vietnamese
