Dong Nai Province - A Friendly Destination for Investors

By late 2005, Dong Nai province had attracted investment capital of over US$8 billion. This figure proves the fast track of Dong Nai province’s investment attraction policies. Vietnam Business Forum interviewed Bo Ngoc Thu, director of the Dong Nai Department of Planning and Investment, about the province’s investment attraction.

 

In 2005, total investment in new projects and projects applying for investment increase was put at US$1.02 billion. So far, the total number of operating projects stands at 722 with a total registered capital of US$8.2 billion. Projects are concentrated mainly in Bien Hoa city, the districts of Nhon Trach, Long Thanh and Trang Bom and industrial parks. Eighty per cent of this number of projects and 85 per cent of capital are concentrated in industrial parks.

 

So far, 31 countries and territories have invested in Dong Nai. Among them, Taiwan is a leading foreign investor with 287 projects, capitalised at US$2.95 billion. It is closely followed by the Republic of Korea with 139 projects, valued at US$1.34 billion and Japan with 61 projects, valued at US$1.1 billion. At present, the number of operating projects is 480, the number of projects under construction is 100. Total realised capital is US$4.6 billion, equal to 56 per cent of total registered capital. The main feature is that foreign investment in Dong Nai’s industrial sector accounts for 95.8 per cent. Of this figure, 84 per cent are concentrated in planned industrial parks, making a contribution to their rapid development. Foreign-invested enterprises have become an important part in Dong Nai’s economy, contributing 36 per cent of added value, 90 per cent of import and export turnover, 60 per cent of industrial output, 36 per cent of State budget revenues, and generating jobs for 224,000 people.

To date, Dong Nai has had 18 industrial parks approved by the Prime Minister with a total area of 5,307 hectares. The leased area currently accounts for 58.2 per cent. Total investment capital for infrastructure development is US$123 million. Dong Nai province has 14 more industrial parks applying for licences, not to mention three others applying for expansion.

 

However, apart from favourable conditions, Dong Nai faces many difficulties and challenges in investment attraction. These include the increase of small-sized projects (in 1995, the average capital investment of a project was put at US$27.22 million and the figure was US$5.45 million in 2000 and US$4.9 million in 2005), a low number of projects using hi-technology or those developed by investors from Japan, the US and the EU. Districts in the north of the province have not attracted many projects yet.

Via investment promotion seminars, Dong Nai will continue to perfect and improve its investment environment.

 

Accordingly, we will continue to review our mechanisms and policies to propose central agencies to adjust them, removing discrimination between local and foreign-invested enterprises. The province will study some fields and industries that are calling for investment, and which are suitable with the province’s and the region’s plans. Dong Nai will promote administrative reform and perfect its one-door mechanism to create more favourable conditions for investors.    

We will also promote the education of legal information and information about investment promotion to Vietnamese and foreign investors. We will concentrate on human resources development, the improvement of the living and working conditions for local people and educating local people about hygiene. We will focus on developing infrastructure for socio-economic development. 

In the coming years, Dong Nai province will continue to create favourable conditions for investors who seek opportunities in all industries, except for those that are banned by the law. In particular, we will encourage investors to do business in the following fields:

 

In industry: Priorities will be given to hi-tech, mechanic, electric and electronic, new material production projects. Also, we will call investors to projects on manufacturing composite, heat-proof and sound-proof materials, agriculture machinery, engines, automobile and motorbike spare parts and accessories, textile and garment materials and accessories, packaging, medicine, and projects friendly to the environment.

 

In the agriculture and processing industry: Projects on preserving post-harvest farm-produce, processing animal meat and farm-produce. We will prioritise projects producing breeding animals and plants using bio-technology.

 

In infrastructure: we will encourage investment in the construction of seaports, bridges, roads, waste treatment facilities and public passenger transportation.

 

Other fields include international hospitals, schools, hotels, tall office and residential buildings, tourist sites and sports facilities.