5:24:45 PM | 8/5/2013
The economic picture of Hung Yen province has been very bright in recent years. The province has made a remarkable result in investment attraction and become a favoured destination for domestic and foreign investors. As part of a programme designed to assess the investment climate and provincial competitiveness index (PCI) in Hung Yen province, Vietnam Business Forum has an interview Mr Tran Quoc Van, Deputy Director of the Hung Yen Department of Planning and Investment. Le Sang reports.
How do you assess the current health of enterprises in the province?
While domestic and global economies are developing unfavourably due to effects of economic crisis, rising prices of oil and inputs in the midst of weakening purchasing power, growing inventories, and high interest rates, production and business operations of all enterprises in the country in general and in Hung Yen province in particular are affected. Some businesses in the province have to scale down operations or change production methods to survive and seek new markets.
Currently, the province has about 4,700 enterprises, of which 3,007 are in operation, accounting for 63.6 per cent, while 272 have suspended activities, 314 filed for bankruptcy, and 137 are working on licence termination.
Hung Yen province has not built a specific mechanism for investment attraction that best suits the local context but investment projects are provided the highest incentives in accordance with current laws.
To maximise most resources for economic restructuring process towards sustainability, which has become an urgent requirement, how has the Department of Planning and Investment advised the Provincial People’s Committee to perform this process effectively?
Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs and ensures the harmonious development of three major aspects: Economic benefits, social benefits, and environmental protection. In other words, sustainable development must ensure economic development - long-term, sustainable projects; economic development helps increase incomes for enterprises and the State.
As regards social benefits, a lot of jobs are generated and labourers have good incomes and enough insurance. To achieve these, all economic sectors, government levels, and civil social organisations must work together on three aspects.
In recent years, Hung Yen province has been actively working to improve its provincial competitiveness index (PCI) ranking. What are the solutions Hung Yen province has applied to improve its investment environment?
Let’s talk about component indexes of CPI. Regarding the market entry index, most companies in the province are mainly subcontractors which feature low industrial production value and poor market information. Hence, the province must attract investment for supporting industry to ensure sustainable development. Raising the market entry index means increasing industrial production value.
With respect to administrative procedure reform, the province continues reviewing and streamlining cumbersome, unnecessary procedures to remove red tape and difficulties against organisations and citizens. At the Department of Planning and Investment, after review, administrative procedures were reduced from 210 sets to 150 sets. The single-window policy is applied to facilitate enterprises and organisations to deal with administrative procedures.
Besides, the province also enhances transparency and publicity of administrative procedures at the websites of the Provincial People’s Committee and the Department of Planning and Investment.
The province also increases dialogues with businesses to listen to their complaints and proposals to seek solutions, and increases post-dialogue inspections.
Hung Yen also attaches importance to human resource training. The province currently has 17 vocational training institutions (training centres, secondary schools, colleges and universities). It also improves the quality of vocational training institutions to meet the increasing demand for highly-skilled human resources. The province also actively produces jobs.
In particular, the province improves access by issuing administrative procedures and orders concerning land reclamation and transfer, and decentralises power to this effect to quicken land reclamation, clearance and transfer for enterprises.
In the past time, Hung Yen has paid special attention to supporting businesses. Currently, the province has two investment promotion centres affiliated with the Department of Planning and Investment and Hung Yen Industrial Zone Management Committee. As an advisor to the provincial authority on planning and investment issues, the department has actively advised the province to pick projects with advanced technologies to ensure environmental sustainability and sensible land use.
The arrangement and licensing of investment projects based on local strengths and advantages will help boost economic restructuring, sector development and urbanisation, as well as social security.
Besides, the Department of Planning and Investment strengthens coordination with relevant departments in post-licensing management to ensure reasonable utilisation of resources and protect the environment for local residents. Waste is treated to ensure environmental hygiene.