Quang Nam Province Makes Efforts to Create Attractive Investment Environment

Quang Nam Province Makes Efforts to Create Attractive Investment Environment

Investment and development of enterprises often goes hand in hand with the economic development of each locality as it makes significant contributions to GDP growth and State budget revenues. Being aware of the important role of investment in socio-economic development, over past years, Quang Nam province has issued policies and mechanisms to create favourable conditions for enterprises of all economic sectors, especially the private sector, to develop. Local enterprises' production and business activities have seen great development with a GDP growth rate of more than 10 per cent in 2004. In the first half of this year alone, the province's GDP increased by 11.15 per cent against that of the same period last year. The value of industrial production, services, and export saw increases of 24.44 per cent, 13.5 per cent and 45.24 per cent, respectively, against the year earlier period.

So far, there have been 33 foreign-invested projects licensed in Quang Nam province with total investment capital of US$220 million, let alone 1,200 private enterprises with total registered capital of around VND 2,000 billion (about US$126.903 million). The number of private enterprises saw an annual increase of 25 per cent from 2001 with an increase of 65 per cent in capital. Enterprises in Quang Nam have changed for the better, adapting to fierce competition in the domestic and foreign markets.

To attract more direct investment, Quang Nam province needs a concrete plan with suitable steps to address the following groups of issues:

The province should accelerate administrative reform to create a favourable legal environment for investors by implementing a 'one stop' mechanism to receive and guide domestic and foreign investment and simplify administrative procedures, To attract investment capital from domestic and foreign sources, the province should offer more incentives for investors. Its mechanisms and policies should be unique while the business environment should be equal for all economic sectors. To attract investment from local investors and those from other localities, the People's Committee of Quang Nam province must gradually complete its master plans for each region and industry. At the same time, the responsibilities of district People's Committees and relevant agencies should be clarified in guiding investors on how to develop their projects with regard to compensation, resettlement area building and site clearance.

Investment and trade promotion activities should focus on creating a list of projects calling for investment in an effective manner. The province should develop programmes to call for investors while disseminating laws and incentives to investors. Investment mobilisation should concentrate on each partner and each field. A mechanism by which Vietnamese and foreign investors operating in the province can call for other investors is also required. An information system promoting the advantages of Quang Nam province should be developed while more seminars and conferences should be organised to call for investment. The province should provide further support for investors, helping them conduct studies, develop projects, clear sites and obtain land use right certificates.

A focus should be placed on training and technical infrastructure development - important factors in boosting socio-economic development. More training courses should be organised while training should be diversified to meet the needs of enterprises. An emphasis should be laid on investment consultancy and the organisation of short-term training courses to improve the professionalism of investment promotion cadres. Additionally, the People's Committee of Quang Nam should take advantage of all investment sources to build roads, water and electricity supply networks to help investors reduce costs, while using capital mobilised from land funds to develop infrastructure facilities.

Moreover, the province should concentrate on building faith among investors by creation of a favourable environment. Also, the local social environment should be focused on as it attracts and impacts investors. Co-operation should be promoted with business associations, so that investors can boost co-operation and exchanges. This will help enterprises boost their investment and trade co-operation with each other as well as find a common language in protecting their interests and make their proposals for mechanisms and policies of the State.

The province should issue policies on capital support for enterprises, especially small and medium-sized ones which operate in the fields of investment encouragement. Apart from setting up a fund for credit guarantee, the role of development assistance funds and commercial banks should be developed in providing loans for enterprises according to the prestige and effectiveness of their projects.

Investment attraction should go along with good management to create a favourable environment. In investment attraction, focus should be given to not only calling for new projects but also encouraging investors already operating in the province to expand their activities and increase capital, thus creating a sustainable investment environment.

• Anh Khoa