Kien Giang Province Attracting more Investment

Vietnam Business Forum’s Hoa Binh had an interview with Mr Thai Dac Liet, Head of Kien Giang Department of Planning and Investment, about Kien Giang province’s activities to attract investment.

 

Kien Giang has an advantageous location to develop economic relations with other countries in the region. In 2001-2005, the province has attracted a total investment capital of VND19,410 billion (VND6,241 billion from the State, VND12,959 from the population and non-State sector, VND209.8 billion from FDI), attained an average growth rate of 23.63 per cent a year and 34 per cent of mobilised capital in GDP. By the end of 2005, FDI is expected at US$466 million.

 

In recent years, the manufacturing sector and economic infrastructure have attracted the most investments. The investment in industry in 2001-2005 was put at over VND5,600 billion, mainly in the production of cement, stone and food processing for export. In 2005, the province has produced over 3.3 million tonnes of cement, over 700,000 cubic metres of stone, 5,000 tonnes of pineapple jelly, 2,000 tonnes of pineapple juice and 51,052 tonnes of processed aquatic products.

 

In agriculture, the investment capital was VND5,300 billion, food production was 2.8 million tonnes with over 1 million tonnes as commodities. The province has encouraged the restructuring of export items with the production of high quality rice for export and 128,000 hectares raising su shrimp. In 2005, 85,000 hectares have yielded nearly 21,000 tonnes of shrimp. In 2004, five enterprises started intensive shrimp raising, one of them has developed over 1,200 hectares.

 

Progress has also been recorded in the trade, service and tourism sectors. The total investment capital in the sector since 2001 stands at over VND5,800 billion. Many tourist projects and centres have been newly built or expanded. Roads, airport, seaport have been upgraded, with Phu Quoc airport suitable for 20 flights a day by Fokker aircraft.

 

Being a long distance from key economic regions and road networks, with higher transport fees and poor infrastructure, the investment expenses in Kien Giang are higher than other provinces. Inadequate planning of industrial zones, urban areas, trade and service, and administrative formalities have caused many difficulties for investors. In particular, the legal framework and investment policies remain unclear and inconsistent.

 

At present, Kien Giang is strictly applying the government policy on investment encouragement. However, I believe that there must be common policy on enterprise income tax for both local and foreign investors. In the coming years, Kien Giang needs preferential loans from the central government to expand aquaculture, processing industry for export, off-shore fishing fleet, infrastructure for tourism.