Hau Giang Shows Potential

3:26:17 PM | 8/7/2005

Hau Giang Shows Potential

VIB Forum had an interview with Mr Tran Thanh Lap, Director of the Department of Planning and Investment.

Could you introduce some of the general policies for investment in the province?

 Hau Giang is known as an agricultural province with advantages in the development of services, eco-tourism, and agriculture of high economic value, such as rice, sugar cane, pineapple and aquaproducts. The province is focusing on the development of Vi Thanh industrial zone with an area of 150 hectares and two industrial complexes near Can Tho city:  Song Hau (500 hectares) and Tan Phu (over 200 hectares), to attract Vietnamese and foreign investors.

The province has applied several preferential policies on investment. Besides those of the central government, the investors are entitled to a reduction or exemption of land rental, and reduction or exemption of taxes on projects of investment encouragement. The province has also applied one-stop administrative formalities, information technology in management and licenses granting by networking. The investors are also assisted with preferential interest rates after investment, long-term loans from commercial banks and credit collateral.

What are the main projects in Hau Giang?

The province has several projects requiring both capital and technology, such as communication development, power and water networks, aquaculture and agricultural processing.

The main projects include: the upgrading of 61 Road (Vi Thanh to Cai Tac),  Cai Tu bridge, new 61B Road (Vi Thanh to Can Tho city), the Radio and Television Station,  specialised areas for high quality rice for export, Vi Thuy breeding centre, and flood-free populated areas.

There are three foreign invested projects. The Dong Tan Steel joint venture (Taiwan) with investment capital of over US$804,000; a waste recycling project for energy and fertilisers worth 2.4 million euro using aid from Luxembourg; a Rum brewery (France) using materials from by-products of the Vi Thanh sugar refinery, and an initial output of 1 million litres a year with investment of US$500,000.

What are the advantages and disadvantages in attracting investment?

Hau Giang lies in the centre of the Western part of the Hau River, with Highway 61 and Xang Xa No Canal forming an axis of development linking Can Tho city with the neighbouring provinces of Soc Trang, Bac Lieu, Ca Mau and Kien Giang. The province has applied most favourable policies for local and foreign investors. In conjunction with the Vietnam Chamber of Commerce and Industry, the province has organised several seminars providing necessary information to potential partners. However, as it has only recently been established, the province is facing certain difficulties. With its own efforts and with the assistance of the central government, the province will hopefully become the economic and commercial centre of the Western part of The Hau River.

  • Reported by X.H