Hung Yen Determined to Improve its Business Environment

Hung Yen Determined to Improve its Business Environment

An annual meeting between leaders of Hung Yen province and the local enterprises' community was held on April 22. In the meeting, local enterprises stated the difficulties they have encountered and contributed their comments to the Hung Yen People's Committee, so local leaders will be able to improve the province's investment and business environment.

Hung Yen province now has 1,286 enterprises, including 16 State-owned, 1,226 private and 48 foreign-invested enterprises. According to figures released by the Hung Yen enterprises' association, investment in 2004 came mainly to production. The number of enterprises involved in trade and services has increased rapidly. For example, the number of service enterprises has increased from 41.7 per cent to 77 per cent. This has shown a change in operation of enterprises, meeting the market tendency.

At the meeting, apart from reports by local authorities and representatives from the local enterprises' association about the province's socio-economic situation and the association's activities, representatives from enterprises contributed their comments on State management agencies in Hung Yen, so that the agencies could provide further support for enterprises in the coming time. A representative from the SNS Vietnam Company proposed that the province allow enterprises to contribute their ideas to draft law, strategies, plans and programmes for the province's socio-economic development. The representative said that enterprises did not have enough information about the province's market, mechanisms and policies on investment encouragement. Sharing the same idea, a representative from the Sufat Vietnam Company suggested that the province should organise seminars regularly to help enterprises get information and implement their tasks, especially enterprises strategies.

Talking about human resources development, a representative from the Yen Son Company said that Hung Yen province should focus on human resources development to produce skilled workers and qualified managers. The representative went on to say that the province and its authorities should co-operate with enterprises when developing strategies on human resources, so enterprises' strategies would be able to meet with that of the province.

Nguyen Bat Khach, vice chairman of the Hung Yen People's Committee, clarified orientations and tasks for five years, from 2006-2010. Accordingly, Hung Yen province will gain a growth rate 1.3 times higher than the average figure of the whole country. He stressed that to that end, authorised agencies and enterprises in Hung Yen province should co-operate more closely with each other, clarifying responsibilities and tasks of each agency and mass organisation. He went on to say that site clearance and construction should be accelerated in 2005 for over 200 projects to become operational. Also, management and co-operation among taxation agencies, customs agencies and enterprises should be promoted to ensure the province's budget collection.

Following are ideas of entrepreneurs investing in Hung Yen province:

 Residential areas should be built to lease to workers -Pham Van Yen, deputy general director of Lifan Vietnam Joint venture Motor Company

 The Lifan Vietnam Motor Company is a foreign-invested enterprise, operating in Hung Yen province for three years. Over the past three years, we have received great support from the local authorities and agencies, especially the Department of Trade and Tourism, the Department of Planning and Investment, the Tax Department, the Customs House, and partners.

Hung Yen Customs House provided us with consultancy services on customs declaration for our imported goods, helping us save money and time. We hope to continue to receive further support from the House and that the House will develop unique mechanism and policies on tax refunding and goods re-export.

Now, in industrial parks in Hung Yen province, there no enterprise is involved in building residential areas for workers. This is causing some trouble and difficulties to their daily life. As far as I am concerned, the province should have a land fund for building residential areas in industrial parks for leasing to workers with charges suitable with their incomes. Also, the Hung Yen Department of Transport should consider the opening of bus routes to industrial parks from Hanoi to facilitate workers and managers' travel.

Understanding of the law should be improved for enterprises when they enter foreign markets - Do Quang Hien, general director of the T&T Company

 T&T Company manufactures, assembles and trades engines, spare parts, motorbikes, and electric and electronic goods, with its Majesty brand becoming a leading trademark among Vietnamese motorbike manufacturers and assemblers. We are also an authorised distributor of Chinese-made cell phones under the trade name Bird in Vietnam.

We have begun to enter foreign markets. However, the promotion of products under the trademark T&T remaine constrained. We do not take advantage of the State's promotion programmes because they are not effective enough.

Doing business in foreign markets, private enterprises do not enjoy the State's protection policies and thus face many barriers. International disputes have uncovered great difficulties and challenges during integration. Vietnamese enterprises lack experience and understanding about this field. So, an understanding of law, trademarks, copyright and competitiveness should be improved for enterprises when they enter foreign markets. This is difficult work, so we need support from management and diplomatic agencies. Also, we hope that the Government will help us promote our investment and export.

Infrastructure planning and development should be implemented better - Robert Santurbano, general manager of Uginox Vietnam Company

After more than one year operating, Uginox Vietnam is a leading stainless steel material supplier with a market share of 60 per cent in the north and 30 per cent in the whole country. This was achieved thanks to the priorities in Hung Yen province's investment policies, such as land rent and income tax exemption and reduction, and their vocational training subsidies.

Hung Yen has received many investors. The presence of enterprises in industrial parks has created a new face for the province, turning it from an agricultural province into an industrial one. Apart from its convenient location for trade and low labour costs, enterprises have become aware of great efforts made by local authorities to create a favourable and transparent business environment. For example, the province has provided guidelines and support for enterprises to have land for their production and business activities with exempted and reduced land rent and extended land rent duration of between 10 and 15 years.

However, to attract more investors, Hung Yen should better implement its planning and development of infrastructure facilities, including roads, electricity network, water supply and drainage, waste treatment, residential areas for workers, promoting the development of human resources.

Unique mechanisms and policies are needed for investors - Nguyen Quoc Lap, general director of Kyung - Viet Corporation

 We are a joint venture company, specialising in producing and trading textiles and garments. We have operated in Vietnam for around three years in the Pho Noi A industrial park, Lac Hong, Van Lam, Hung Yen province, 24 kilometres far from Hanoi and 78 kilometres far from the Haiphong seaport. With such a convenient location, we have favourable conditions for our production and export activities. Also, we have received much support from Hung Yen province's authorities, from investment licence granting, site clearance to corporate income tax priorities. Our products have been exported to many countries with the US being our major market. We have created and built up our prestige and trademark among our customers and partners. We are now capable of manufacturing 300,000 products per month with ten production lines.

However, we have faced many difficulties, such as material supplies, a lack of export quotas and fierce competition in the market. We are limited in our production capacity with around 600 workers. If we can overcome part of our difficulties, we will promote our production activities, generating more jobs for local workers. In the coming years, we will target non-quota markets, including the EU and Canada with the same potential of the US market.

To effectively attract investment capital, agencies in Hung Yen province should issue unique mechanisms and policies for investors, listening to ideas and comments to have solutions to harmonise the interests of both investors and local people.

• Nguyen Thoa – Thu Huyen