Thai Nguyen Supporting Businesses’ Development

 

In 2012, Thai Nguyen has taken many measures to facilitate the provincial social-economic development in the context of the global economic slowdown and local uncertainties. Under the provincial governance and creativeness and flexibility of business community, together with effective implementation of the government’s policies, Thai Nguyen has mobilized sources to achieve its social-economic development targets last year, contributing to ensure social security and national defence.

 

Thai Nguyen economy grew 7.2 percent in 2012, higher than the country’s average level. The province’s GDP per capital reached VND25.6 million/year; production value of the industry sector reached VND30 trillion based on 2010 prices and the province’s State budget collection hit over VND4 trillion. The province ranked 17th in the Provincial Competitiveness Index (PCI) among 63 cities and provinces while it ranked ninth out of 63 cities and provinces in terms of Information and Communication Technology (ICT) index. Thai Nguyen created jobs for 22,600 people during the year, surpassing the whole-year target by 41.3 percent and raised its trained workforce rate to 51.97 percent. Together with the social-economic development, local authorities have paid due attention to the improvement and development of infrastructure. The province also accelerated the development of key infrastructure projects, including those on building industrial parks and industrial clusters. The province also took measures to improve the effectiveness in land planning and land use to build trade and service centres, and attached supported the development of each sector with the economic restructuring and job generation. Thanks to these efforts, the province achieved almost all of its social-economic targets last year.

 

In the first half of 2013, when the local and global economy remains gloomy and is forecast to continue facing challenges in the coming time, Quang Nam’s economy has shown signs of recovery: the province’s investment environment has been improved significantly, making the province become more attractive in the eyes of domestic and foreign investors such as Samsung Electronics Vietnam, which has invested US$2 billion in its project and around US$15 million in building an aviation warehouse. South Korean’s Samsung is also completing necessary procedures for a project to manufacture microprocessors and integrated units in the Yen Binh I industrial park in Pho Yen district with a total investment of US$1.2 billion. The province granted six investment licenses totalling US$100 million to businesses in the industrial production sector in local industrial parks... . These positive signals will help the province welcome a new South Korean investment wave, which is expected to contribute significantly to the provincial social-economic development and facilitate its plan to develop Thai Nguyen into an industrialized province before 2020.

 

Recently, the global economic slowdown and local economic uncertainties have put adversely impacted on the business community. Most of businesses complained about financial difficulties, and low sales and fiercer competition. Thai Nguyen authorities have taken many measures to help enterprises and farmers ease their difficulties to survive the difficult time:

 

- Thai Nguyen asked provincial agencies, business associations and enterprises to make regular exchanges and hold talks to make investment incentives more transparent and public, contributing to build “friendly” and effective governance mechanism to facilitate the operation of businesses.

- Thai Nguyen has held many conferences to meet and discuss difficulties and challenges facing businesses to investment in the province.

- Thai Nguyen has offered many incentives following the issuance of the Government’s Resolution No.13/NQ-CP to help businesses ease their difficulties. The incentives include exemption, reduction or extension of State budget contribution and tax duties; and directions on cap on lending rate for short-term loans to credit institutions. Local authorities also asked the tax agency to hold talks with businesses to ease their concerns about tax policies, especially new tax rules. The wide application of e-customs procedures has also helped businesses and investors save time and money.

- The province approved the establishment of the Thai Nguyen business association to ensure their benefits and help them operate systematically and effectively, thus contributing to the provincial economic development.

- Thai Nguyen has accelerated its administrative reform and adopt the “one-door” policy for all administrative work. The province also regularly updates and makes its policies, administrative procedures and decisions more transparent via the provincial portal and others.

- Thai Nguyen has built and issued its land use plans in the 2011-2015 period; the land use planning in the 2011-2020 period; the project on improving land management capacity of State agencies in the 2012-2016 period ; incentives and support for investors in the province; and a scheme to improve the quality of local human resources in the 2012-2020 period.

- Thai Nguyen has created favourable conditions for State officials to attend training courses to help them improve their skills to build qualified and unblemished administration.

 

In 2012, Thai Nguyen climbed 40 notches to rank 17th in the Provincial Competitiveness Index (PCI). The 17th rank exactly reflects what the Thai Nguyen’s governance, people, and business sectors have made efforts in recent years. We are always determined that the social-economic development is the key task of all sectors and agencies. Thai Nguyen has worked out measures to raise awareness of State officials and people about the importance of the improvement in the PCI rank and encourage them make more contributions to the cause. To further improve the PCI rank, Thai Nguyen has pledged to create the favourable environment for the business development; accelerate the administrative reform; invest in developing human resources, especially high-qualified workforce, and building the infrastructure for traffic and industrial zone or complex; make policies, investment incentives more transparent and public; assess and select investors on the basic of sufficient potential and competence.

 

Thai Nguyen and the Japan Embassy in Vietnam have built good relationship thanks the friendship relations between the two countries. Over the past years, Thai Nguyen has taken part in many events held by the Japan Embassy such as anniversaries to mark the birthday of Mr Mikado, an anniversary to commemorate Japanese tsunami victims of Tsunami, and the forum “Vietnam – Japan economic cooperation and industrialization of Vietnam, chance for Kansai enterprises” held in Osaka, Japan on November 28-30, 2012. The province has also invited the Japanese Ambassador to Vietnam to local events such as the first Thai Nguyen international tea festival and the ASEAN traditional textiles symposium 2013. These activities have proved to be important and meaningful to boost the friendship relationship between Vietnam and Japan.

 

In 2013, Thai Nguyen has welcomed many groups of Japanese businesses, including Quantums, Informatrix, and Kyo Hayashiaya, which are keen on information technology and agricultural production. The province has twinned with many cities and provinces in Japan to foster cooperation between the sides. Thai Nguyen is planning to invite the Japanese Embassy and Japanese businesses in Vietnam to attend the second Thai Nguyen international tea festival in November 2013 to seek investment opportunities.