Enhancing Investment Environment Is Key

9:46:16 AM | 27/10/2020

Over 20 years after re-establishment, from an agriculture-based province, Vinh Phuc has managed to obtain many important comprehensive achievements in all fields, affirmed and elevated its status to other provinces and cities in the region and the country.

The province’s annual economic growth rate is always high relative to other provinces in the region and the country, reaching over 8% a year in the 2016-2019 period. The size of the economy was VND119 trillion (US$5.27 billion) in 2019, 60 times that of 1997, bringing per capita GRDP to VND103 million (US$4,560), higher than the national average (US$2,700). The share of industry and service accounted for 94.56% and the share of agriculture, forestry and fishery made up for 5.44% in 2019. In 2004, Vinh Phuc province was able to balance its budgetary revenue and expenditure and forward surplus to the central budget. In 2019, the province's budget revenue reached VND35 trillion, ranking 8th in the country and 4th in the northern key economic region.

These achievements resulted from correct and timely policies aimed to effectively exploit local potential advantages as well as internal and external resources for construction and development. The private business sector and the foreign-invested business sector significantly enabled local economic success. Therefore, the province’s policies are aimed at creating the most favorable business environment for domestic and foreign investors to enhance their investment performance and contribute to local socioeconomic development.

In the past time, Vinh Phuc has introduced many important policies and solutions, for example building and creating an enabling climate for businesses and investors. With the motto “All investors coming to Vinh Phuc are citizens of the province”, the province defines businesses as a driving force for development. Therefore, the provincial government always provides the most favorable conditions for them to grow. All have equal access to resources, land, infrastructure, electricity supply, water supply, tax incentives, vocational training, labor recruitment, capital and information according to the spirit of the Government's Resolutions 19/NQ-CP in 2016, 2017 and 2018 and Resolutions 02/NQ-CP in 2019 and 2020. With its efforts, Vinh Phuc always ranks among good performers in the Provincial Competitiveness Index (PCI). This shows their good appreciation of the province's efforts for a better business investment environment.

From 2016 to the end of September 2020, the province attracted 459 new projects and licensed 257 projects to add capital base. Particularly, FDI investors registered to invest US$2.87 billion (equal to 199.86% of the value in the 2011-2015 period) in 231 fresh FDI projects and 195 existing FDI projects. Domestic investors registered to invest VND58,141 billion (equal to 232.77% of the value in the 2011-2015 period) in 228 new projects and 62 existing projects. Investment results partly show the effectiveness of policies and solutions on improving the business investment environment of Vinh Phuc province.

By Hoang Tham, Vietnam Business Forum

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