Vinh Phuc Making Efforts to Further Attract FDI

 

According to the report by the Department of Planning and Investment, by the end of June 2015, Vinh Phuc province had attracted 785 projects, including 193 FDI projects with the total investment capital of over US$3 billion and 592 DDI projects with the total investment capital of VND43 trillion.

 

Vinh Phuc has synchronously enhanced the quality of human resources, carried out administrative reform, issued several preferential policies, supported investment by policies supporting projects investing in supporting industries, planned and implemented the scheme to improve investment environment and the Provincial Competitiveness Index (PCI), and focused on solving difficulties and problems of investors in the area. Particularly, the Provincial People's Committee has submitted to competent authorities for approval the following projects: The master plan on socio-economic development towards 2020, Provincial and regional planning, General urban planning of Vinh Phuc towards 2030, and detailed planning of subdivisions. The province ensures the solid basis for implementing infrastructure projects to attract investors who are looking for opportunities and make investments as planned. The province has always attached importance to investment promotion and investment promotion in place. Investment promotion has many innovations and moved towards the major, potential markets such as Japan, Italy, South Korea, Hong Kong and Taiwan to call for investment in projects with high technological content.

 

Thanks to increasingly improved investment environment, the Provincial Competitiveness Index of Vinh Phuc has advanced to the 6th among 63 provinces and cities nationwide. So far, after nearly two decades of maintaining policies to attract investment, Vinh Phuc has become one of the centres for automotive and motor industry of the country which attracts a lot of world-leading investors who then became very successful such as Toyota Vietnam, Honda Vietnam and Piaggio Vietnam.

 

Despite the economic downturn, the number of projects and registered investment capital is increasing. So far, investment attraction, particularly of FDI projects, has played an increasingly important role and accounted for high proportion of the total social investment capital. In particular, during 2006-2010 period, FDI project attraction accounted for 18.41 percent and 2011-2015 period 18.19 percent. FDI projects contribution to GDP has increased gradually in different stages, which accounted 30.84 percent a year in 2001-2005 period; 41.14 percent a year in 2006-2010 period; 47.51 percent a year in 2011-2015 period, higher than the average of the whole country. FDI project's production accounts for over 80 percent of industrial production, 80-85 percent of the state budget revenues, and 85-90 percent of the export value, contributing to labour restructuring (In 2000: Labour structure in the agricultural sector, industry - construction sector and service sector accounted for 85.7,6.5 and 7.8 percent, respectively. Those figures changed to 37.2, 27.8 and 35 percent in 2014). Hopefully with the right, timely and comprehensive steps, Vinh Phuc province will continue to receive positive signals from investors in the near future.