Vinh Phuc: Ideal Investment Destination

In 10 years of building and developing Provincial Competitiveness Index (PCI), no locality has as strong a growth as Vinh Phuc, up 20 levels within a year as shown in the new PCI report launched in mid-April in Hanoi, by the Vietnam Chamber of Commerce and Industry (VCCI) in cooperation with the US Agency for International Development (USAID). In 2013, Vinh Phuc ranked no. 26, but in 2014, it rose to no. 6 in the PCI rankings with a total score of 61.81 points, 2.95 points higher than that of 2013. This proves that the competitiveness of Vinh Phuc is not only in "hard infrastructure" but also in the governance ability of the local authorities.

 

2014 marked the prosperity in attracting investment of Vinh Phuc. By December 31^st 2014, Vinh Phuc attracted 45 FDI projects with registered capital of US$417.6 million (newly registered capital was US$355 million; added capital was US$62.6 million), up 95.6 percent on the number of project and up 25.6 percent of the registered capital compared to 2013, the highest ever. The majority of investors are from Japan and South Korea. This is the result of good performance of 10 components in enhancing PCI last year, contributing to bringing Vinh Phuc back to the top rankings of the PCI. Vinh Phuc remains the top of economic growth and the position of runner-up in contributing to the State budget revenues in the North: The total state budget revenues in 2014 surpassed VND20 trillion, accounting for 115 percent of the estimate and up 4.9 percent compared to same period in 2013.

 

One of the factors that impact directly the spurt in economic growth of Vinh Phuc is the investment promotion activities. With the "red carpet" mechanism and the implementation of administrative reform, the domestic and foreign investors continue to look to Vinh Phuc, contributing to fill the clusters and industrial complexes. In particular, the settlement of administrative procedures under the "one stop shop" for FDI and DDI projects has created favourable conditions for businesses operating in the areas. Thus, together with the positive economic results, the PCI of Vinh Phuc was significantly elevated (up 17 steps from 2012 to 2013). The time to resolve administrative procedures when investors decide to visit and invest in Vinh Phuc is just one third, compared with the average of the country.

 

In 2015, it is forecast that the socio-economic background will continue to experience difficulties. Some products which mainly contribute to the growth and revenue of the province such as cars, motorcycles of Japanese investors such as Honda, Toyota have to compete with imported products when the ASEAN Economic Community is established by the end of this year. Mr Nguyen Tien Hanh, Director of Vinh Phuc Investment Promotion Agency, said that in 2015, Vinh Phuc determines the overall goal: "Continue to remove difficulties for business, and promote administrative reform" to support businesses. To achieve these goals, Vinh Phuc has set the task groups and major solutions, which focus on creating favourable conditions and resolve quickly difficulties for investors, effective use of resources to invest in developing and strengthening the management of state assets, enterprises will be supported in infrastructure and clean land. When there is a problem with the enterprise, top leaders of the province and responsible departments will help handle it promptly. Accompanying is not a mere slogan, but is reflected in the daily operations of the government apparatus.