Ready for Investment Flows

By unlocking all resources, Vi Thanh has become a potential city in the Mekong Delta, a strong magnet to external investment resources and an attractive destination for large investors and corporations.

Uplifting the position, attracting investment

In 2009, Vi Thanh City, the capital of Hau Giang province, was recognized by the Ministry of Construction as a third-class city under Decision 1156/QD-BXD. But at that time, its economic development was not sustainable because of small-scale industry, low-quality services, limited and asynchronous technical and social infrastructure.

In 2019, Vi Thanh City was recognized as a second-class city and completed new rural development goals. Now, 10 years after it was recognized as a third-class city, Vi Thanh has made encouraging development in all aspects thanks to the attention of central and provincial governments, the enthusiastic response of investors; and the determination of the Party, the government and the people. The city achieved a good process of socioeconomic development, readily preparing for a new stage of integration, cooperation and development.

The province’s investment capital sources are constantly increasing. In 2016-2020, the investment value increased by 14% over the 2006-2010 period, resulting in relatively synchronous urban infrastructure development and a rapid growth of high-rise buildings. The economic structure was shifted toward a desired pattern, with an increasing share of commerce and services (59.62%) and industry and construction (32.22%), and a declining share of agriculture (8.16%). The city’s industrial zones have attracted 27 enterprises with a total investment capital of VND1,221.192 billion, with 14 enterprises already in operation.

The province’s investment capital sources are constantly increasing. In 2016-2020, the investment value increased by 14% over the 2006-2010 period, resulting in relatively synchronous urban infrastructure development and a rapid growth of high-rise buildings. The economic structure was shifted toward a desired pattern, with an increasing share of commerce and services (59.62%) and industry and construction (32.22%) and a declining share of agriculture (8.16%). The city’s industrial zones have attracted 27 enterprises with a total investment capital of VND1,221.192 billion, with 14 enterprises already in operation.

Trade and services are strongly developed. Currently, the city has 6,840 trade and service companies. Vi Thanh is calling for investment and operation of Vincomplaza shopping and entertainment center, Dien May Xanh consumer electronic supermarkets, Bach Hoa Xanh grocery supermarkets, Cho Lon furniture and consumer electronic market, Vinmart supermarkets and Hoa Luu market.

Many key projects are built to create beautiful landscape architecture and expand urban spaces, including the Vi Thanh Administrative Center, Cat Tuong Western Pearl Residence, low-rise social housing area in Ward 5 and Cat Tuong 2 new urban area in Ward 3. Urban traffic systems and technical infrastructure are renovated, upgraded and constructed to connect main roads together and make the city more spacious and modern.

Rural infrastructure is also invested. The city has four communes certified to achieve new rural development standards and completed the new rural development task in 2019. Rural roads are asphalted or concreted. Irrigation systems effectively serve agricultural production needs. All urban wards and rural communes have primary schools and kindergartens certified to meet national education standards, account for 83.33% of total schools, and educational quality has constantly improved at all levels. All ward and commune health stations meet national standards. Per capita income increased rapidly from VND32 million in 2010 to VND71.4 million in 2020, representing an increase of 2.23 times. Poverty and near-poverty rate decreased from 6.04 % in 2010 to 2.67% (568 households) in 2020. Security and defense are always maintained.

Building friendly government, smart city

Based on strategic actions and solutions to carry out the motto of the 12th City Party Congress: "Solidarity, democracy, discipline, creativity and development", on April 12, 2020, the Vi Thanh City Party Committee held a conference on thorough study and execution of the Resolution of the 12th City Party Congress (in the 2020 - 2025 term) for key officials, which was then scaled up to wards, communes and villages. To effectively implement given tasks and solutions, the city will focus on mobilizing all social investment resources for infrastructure construction. The city will focus on developing trade, services and tourism, investing in health, education - training, and science - technology; applying social security policies; ensuring national defense, maintaining political security, social order and safety; promoting administrative reform, and building a friendly government and smart city.

First, expanding the area of industrial zones by to 12.5 ha; investing in completing and opening Road 6 linked to local industrial and handicraft complexes; focusing investment on building a complete urban infrastructure system to match second-grade urban criteria, with priority given to key projects that are significant to socioeconomic development: Carrying out "Vietnam City Upgrading Project - Vi Thanh City Subproject", operating six inner city roads and extended Le Quy Don Street, calling for investment and speeding up the construction of new urban areas, resettlement areas, creating a pervasive force for local urbanization

Second, investing in developing a modern trading infrastructure system to meet local commodity trading demand. In 2021 - 2025, the city will entice investors to build and upgrade key commercial and service projects such as: shopping malls at Hai Ba Trung Marketplace in Ward 1, a multi-functional serviced residential area at the former headquarters of the People's Committee on Tran Hung Dao Street in Ward 1; pressing on the construction progress of new rural residential areas and Hoa Luu Market for quick completion and operation; and raising public awareness of environmental protection.

Third, mobilizing investment capital for socioeconomic development, striving to obtain budget revenue of VND3,510 billion in 2025 and reach a yearly growth of 6.85% in 2021 - 2025 to ensure the budget expenditure; carrying out solutions to remove difficulties in production and business, strive to achieve high growth, generate a steady revenue source of for the State Budget; improving the quality of budget forecasts.

Fourth, stepping up the administrative reform, applying information technology to settlement of administrative procedures for organizations and individuals; building an e-government and a smart city for businesses.

Commitment to create best conditions for investors

Defining investment attraction as important to boost socioeconomic development, Vi Thanh City has focused on inviting potential investors into the city; coordinate with provincial agencies to recommend information and incentive policies to them; provide favorable conditions and best support for them, including tax and land rent exemption and reduction; quickly settle procedures for them; guide and support them to carry out procedures concerning investment business, investment certification and business support.

The city pays great attention to administrative reform, especially the administrative procedure reform according to the single-window mechanism in such areas as business registration, investment, tax, land allocation, site clearance and project formulation. This has significantly helped the city reduce troublesome procedures, save expenses, reduce physical visits for companies and investors, thus enabling them to quickly launch their projects.

The Vi Thanh City People’s Committee is always eager to deal with troubles emerging from land compensation and ground clearance. The process of land acquisition, land allocation, land lease, land compensation and resettlement is carried out under the law to avoid public complaints.

The city always supports businesses in all activities and regularly coordinates with provincial agencies to help businesses remove difficulties in production, business and investment. The city strictly manages land use in industrial and handicraft zones; selects suitable and quality projects such as agricultural and food processing and consumer goods production for the rural economy, with special priority given to eco-friendly projects. Vi Thanh City applies science and technology to production, helps local businesses access and invest in new technologies to reduce production costs and enhance quality and competitiveness.

With solutions adopted by the city government, the local business community is constantly growing in size, quality and quantity, thus actively helping local socioeconomic development.

Source: Vietnam Business Forum