Thai Nguyen Province Strongly Attracts Investment

In recent years, with preferential treatment and administrative reform, Thai Nguyen has improved its investment environment and attracted more local and foreign investors. As a result, economic development has grown, with annual GDP growth of over 11 % (higher than the national average), and GDP per capita of VND14.6 million in 2009 and VND17.4 million in 2010. Budget revenue increased 23.1 % a year.

 

From 2009 to late July 2010, Thai Nguyen approved or licensed 428 investment projects with registered capital of over VND105,000 billion (188 licensed projects with registered capital of VND66,823 billion and 240 approved projects with VND38,149 billion). Big projects, both in terms of land area and registered capital, focus on eco-tourism and infrastructure, such as roads and urban centres,

 

FDI projects with licenses valid until July 30, 2010 include 24 projects with registered capital of some US$100 million. In 2009, the province has granted license to a project worth US$15 million with registered capital higher than that of 2008. Though FDI projects in the province are not big in number, they are large in size and important in quality. A number of groups and investors have big projects with some VND1,000 billion in capital, thousands of hectares of land, with high technology and high-value products, for instance, Yen Binh JSC with 7,200 hectares, APEC JSC 3,300 hectares, Long Viet JSC 560 hectares, Mineral processing plant of 1.5 million tonnes/year and some 20 apartment building, hotel and recreation centre projects.

 

Investments have increased due to intensive promotion activities. Each year, the province organized an average of 15 events relating to attracting investments. The events have increased links between businesses and the province, as well as economic cooperation at home and abroad. Since 2006, thousands of foreign investors (from the US, South Korea, China, Taiwan, Singapore, Malaysia, Thailand and Germany) have sought investment opportunities in the province. In particular, the Highway 3 project worth VND8,000 billion attracts great attention from investors. The province also attracts investment in infrastructure, new urban areas, eco-tourism, services and mineral processing.

 

Besides these achievements, Thai Nguyen still has weaknesses in attracting investment. Many projects face delayed implementation due to difficulties in land clearance. With limited financial resources, the investors have to advance money for land compensation. Meanwhile, the construction of infrastructure linking to the projects is slow. Local and related authorities fail to assist investors in time. 

 

To improve the investment environment and accelerate project implementation in the province, Thai Nguyen has taken measures to improve the master plan, accelerate land clearance and administrative formalities, encourage investments in infrastructure development, choose right investors and increase the supervision of investments.

 

In 2006-2010, the province has focused on improving the investment environment. With the guidance of the central government, the province has applied effective measures to attract investments. Therefore the investment environment has been improved and more investors have sought business opportunities in the province.