Established in 2017, Phu Ninh International Investment Co., Ltd has positioned itself as an innovative and professional investor of industrial real estate in Quang Nam province. Assigned by the Provincial People's Committee to carry out infrastructure investment and operation project for Hill 30 Industrial Complex, despite numerous difficulties, the company has made efforts to accelerate the project progress and achieved many positive results, highly appreciated by local authorities. Mr. Mai Thanh Vinh, President of the Board of Directors of Phu Ninh International Investment Co., Ltd, hereby introduced Hill 30 Industrial Complex Project. Ngo Khuyen reports.
Why does Phu Ninh International Investment Co., Ltd invest in industrial real estate and what is the Company’s development orientation?
Against the backdrop of an opening, reforming and integrating economy, many private companies invested in the industrial real estate sector. However, due to different perceptions of industrial real estate, companies tend to use different methods of doing business and not all are successful.
Before this reality, Phu Ninh International Investment Co., Ltd was established by people who worked in different fields like agriculture, forestry, project management, civil and industrial construction but shared the same idea, purpose and desire for industrial infrastructure business. Following a detailed research, the company was approved by Quang Nam province to invest in the infrastructure system of Hill 30 Industrial Complex in Tam Dan commune and Phu Thinh town, Phu Ninh district (according to Decision 3286 dated September 8, 2017 of Provincial People's Committee), covering 70 ha (Phase 1: 34.13 ha) and costing VND109 billion. This was considered a starting project of a long-term development strategy.
Besides Hill 30 Industrial Complex, the company is also conducting studies on industrial zone investment in Quang Nam province and is currently actively supported by the local government.
Could you tell us more about Hill 30 Industrial Complex and the company's commitment to this investment project progress?
Hill 30 Industrial Complex is the first industrial real estate project implemented by Phu Ninh International Investment Co., Ltd and the first private industrial complex project in the country implemented according to the Government’s Decree 68/2017/ND-CP dated May 25, 2017. Thus, both the company and authorities confronted difficulties in carrying out this policy. It took time to study procedures and regulations from central to local levels: Project licensing, land compensation, site clearance, land rent, support policy and environmental impact assessment.
With its highest determination and effort, the company embarked on the project with consistent solutions: Arranging capital sources, completing procedures, arranging construction plans, coordinating with localities to build criteria for investment incentives and attraction, domestic and international investment promotion and started construction on June 18, 2020. This synchronous implementation, especially the focus on investment promotion and attraction, enabled Hill 30 Industrial Complex to achieve the best business result for the investor and boost socioeconomic development for the locality.
Up to now (March 2021), all basic procedures have been completed. The company also finished the first phase of site clearance of 34.1 ha, accelerated for official operation in September 2021. With the two first factories in operation, which employ 1,000 workers, the company attracted five more tenants. Many companies in the production chain with these tenants are seeking to invest in Hill 30 Industrial Complex.
To attract domestic investors, in addition to preferential policies of central and local governments such as tax, import, transportation, airport and seaport, the company has worked hard to establish support, cooperation, financial support and venture with foreign businesses to manufacture supporting components and provide logistics, warehousing and transportation services. As for foreign companies, the firm offers preferential treatment on land rent, labor, and free paperwork support.
How do you assess the significance and effect of the project on socioeconomic development in Quang Nam province? What are the advantages and disadvantages of the project implementation?
As Phu Ninh is an agricultural district, in the 2020-2025 term, the District Party Congress determined: Further establishing a healthy and transparent investment and business environment, strongly developing the private economy, and developing industry and services into the driving force of the economy. Therefore, Hill 30 Industrial Cluster means concretizing socioeconomic development programs and plans of the district in the current period.
Regarding the significance of the project, Vice Chairman of the Phu Ninh People's Committee Le Van Ninh affirmed: This is the first industrial infrastructure investment and operation project in the area. It will help economic restructuring, labor restructuring; increase employment and income for people; consolidate infrastructure, create a new urban and rural face of the district and bring many other positive effects on social security. Phu Ninh will request relevant agencies, Tam Dan commune and Phu Thinh town and local people to cooperate and support the company to carry out the project.
When it is implemented, the project gets certain advantages: Hill 30 Industrial Complex is the first key project of the central government and Quang Nam province launched under Decree 68/2017/ND-CP. But the biggest difficulty is slow compensation and site clearance, which affects the development of the company and the locality.
What do you think about the investment and business environment of Quang Nam in recent years? What solutions should the province apply to build an increasingly favorable business climate?
In the past years, Quang Nam province has built a very open and attractive investment environment and created favorable conditions to attract investors. Provincial and local authorities always listen closely to every opinion of businesses and minimize administrative procedures.
However, to create a more favorable business and investment environment, Quang Nam province needs to further encourage creative entrepreneurship; introduce support mechanisms and policies for business development; reform administrative procedures in line with e-government construction. Especially, it is necessary to improve the shortage of production space, build more industrial complexes with competitive rents like the ongoing Hill 30 Industrial Complex.
Source: Vietnam Business Forum