Phu Tho Province Opens up for Investment

3:26:37 PM | 8/7/2005

Phu Tho Province Opens up for Investment 

 

Phu Tho is regarded as the bridge between the Northern provinces. It will also serve as the bridge for China-ASEAN free trade area when the highway is completed linking Kunming (Yunnan, China) with Noi Bai international airport, Haiphong and Cai Lan seaports. These advantages encourage Vietnamese and foreign investors to implement their projects in the province.

 

Since the re-establishment of the province in 1997, Phu Tho Party Commission and People's Committee have improved policy and mechanism to attract investment from other provinces and foreign countries. Licensed projects have increased both in quantity and quality. 48 FDI projects have been licensed with a total registered capital of US$389 million from ROK, Japan, China, Taiwan, Iraq, and Belgium and have created 14,127 jobs. The investment focuses on tea processing and export, industrial chemistry, garment and foods.

 

The industrial value of FDI projects was VND1,389 billion in 2003 and VND2,822 billion in 2004, or up 203.17 per cent. Meanwhile, 19 invested projects from other provinces have the total investment capital of VND1,036,772 million (Hanoi with 13  projects and the rest from other provinces). The industrial production value of invested projects was VND776.13 billion in 2003 and  VND814.93 billion in 2004 and the total budget revenue was respectively VND62.36 billion and VND105 billion.

 

ODA and NGO projects have also been implemented in the province including 47 ODA projects with a total capital of VND1,530,365 million (98.84 per cent) and 27 NGO projects with VND48,348 million (1.16 per cent). These projects have concentrated on roads and irrigation works.

 

The success is due to the preferential treatment in land rental of US$0.25 per sq. metre a year with complete services of power, water and telecommunication, enterprise income tax of 15 per cent with an exemption for 3 years after making a profit and a 50 per cent reduction for the next 7 years,  and tax exemption, reduction or delay for encouraged industries. Investors are exempted from import taxes on equipment, technology, spare parts and materials for exported products. They can receive preferential loans from credit organisations, support in interest rates, and no charges for investment formalities.

 

The province has several industrial zones with good infrastructure and services. Thuy Van IZ with 400 hectares has already 36 licensed projects including 16 wholly foreign invested. While only two projects invested in Trung Ha IZ with 132 hectares and good infrastructure and resources supply especially in textile and garment, assembled mechanics, processing industry, building materials. Tam Nong IZ with 120 hectares, 12 km from Kunming-Haiphong corridor, is the most favourable for the processing industry, mechanics and assembled electronics.

 

FDI and ODA have in fact contributed to the economic restructuring and socio-economic development of the province.

  • Le Hien