Vinh Phuc province has faced certain difficulties in attracting high-tech electronics investment projects in recent years. Therefore, the province has been redesigning its investment policies to attract high-tech electronics firms.
The number of electronics investment projects approximated 200 in the province by the end of September 2021, accounting for 60% of technology projects in industrial parks. However, the locality attracted a few in 2011 - 2020, with only five foreign direct investment (FDI) enterprises licensed into this industry by the Ministry of Science and Technology. They mainly manufacture electronic components and take part in safe production chains.
In 2010 - 2020, Vinh Phuc issued specific policies to boost this industry, including Resolution 57 of the Provincial People's Council on measures to investment attraction and business development support; Resolution 56 of the Provincial People's Council on support policies for supporting industrial projects in industrial parks; and Decision 47 of the Provincial People's Committee on business support for the implementation of supporting industrial projects in industrial parks. Nevertheless, the number of investors eligible for incentives is not many because they must meet many strict criteria. Up to now, no project or enterprise has received investment support under Resolution 57 of the Provincial People's Council.
Although Vinh Phuc has many special investment incentive policies for the high-tech electronics industry, the outcome has not come as expected. Meanwhile, the investment climate, infrastructure, services and workforce are not as good as expected by investors. To realize the goal of the Resolution of the 17th Vinh Phuc Provincial Party Congress (2020 - 2025 term): “Priority investment is to be given to high-tech electronics development to make Vinh Phuc an electronics hub of the country”, Vinh Phuc will continue to selectively attract investment fund for local social, economic and environmental development.
In 2021-2030, Vinh Phuc will apply investment policies on high-tech electronics development to woo large corporations with a high-quality investment fund. Accordingly, the province will support infrastructure rents in industrial parks and the cost of making environmental impact assessment (EIA) reports for financially viable high-tech electronics investment projects to start production, apply high technology and leverage manufacturing in this field.
By Vietnam Business Forum