Further Improving Investment Environment to Draw FDI

3:10:18 PM | 11/8/2023

Vinh Phuc province has adopted consistent and focused solutions to build a safe, effective and attractive investment environment, following the motto “Investors in Vinh Phuc are citizens of the province, the success of enterprises is the success of the province”.

Chairman of Vinh Phuc Provincial People's Committee Le Duy Thanh pays a working visit to Solum Vina Co., Ltd

The province has increased investment for socioeconomic infrastructure development; reformed administrative procedures, applied flexible tax and financial incentive mechanisms and policies; improved competitiveness index rankings on the business environment; regularly met and contacted companies and investors to understand their needs and promptly address their difficulties and concerns; actively accelerated digital transformation to provide timely information for them; and publicized detailed information about land planning, industrial development planning, land price, compensation mechanism for site clearance to investors.

The province’s ongoing efforts to upgrade the investment environment have impressed domestic and international investors, as evidenced by their investment for continuous production and business expansion. Piaggio Vietnam Co., Ltd, a wholly Italian-invested manufacturer and trader of upmarket scooters, has been present in Vinh Phuc since 2007. The company’s two projects, covering 18 ha of land in Binh Xuyen I Industrial Park, came into operation in June 2009 and November 2012, and are currently employing nearly 1,000 employees and actively contributing to the local State budget and local social security. To continue expanding its investment, scaling up its production and business activities, and restructuring its projects, the company merged the two projects and increased the investment value from US$90 million to US$165 million to boost its annual production output from 250,000 vehicles to 400,000 vehicles and its yearly engine output from 300,000 engines to 400,000 engines. As a result, the Vinh Phuc facility has become the most important to the group in the world.

Vinh Phuc province will continue to improve the investment environment, considering it a central task of the province to attract more foreign direct investment and boost local socioeconomic development, amid domestic and international economic difficulties and challenges. In order to effectively entice FDI inflows from existing and new investors, the province will continue to implement investment promotion programs and plans. Besides, Vinh Phuc will also direct relevant agencies to execute tasks and solutions to create the most favorable conditions for investors. By doing so, the province will upgrade the business environment, enhance competitiveness, build e-government, adopt appropriate local administration and adapt to Industry 4.0 trends. It will also constantly raise the professional qualifications of public employees who are directly involved in investment promotion and attraction.

By actively applying open investment attraction mechanisms and policies, improving the investment environment and raising the Provincial Competitiveness Index (PCI), FDI capital flows into Vinh Phuc province will continue to increase in both value and quality, helping the province achieve its goal of becoming a modern industrial province soon.

By Thanh Loan, Vietnam Business Forum