Hoa Binh emerges as investment centre
During the past years, the north-western province of Hoa Binh has increased efforts to attract investment. Viet Nam News reporter Thu Tra spoke to Bui Hai Quang, director of the provincial Department of Planning and Investment, about the province's investment plans for the coming time.
Have the global economic crisis and difficulties experienced by the local economy affected the influx of investment capital into Hoa Binh Province?
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Bui Hai Quang. — VNS File Photo |
The difficulties in the global and domestic economies, of course, have influenced our investment attraction, especially foreign direct investment (FDI). We have failed to meet our target of attracting US$150 million in FDI by 2010 as we could only secure $135 million. In the first nine months of this year, no foreign-invested projects registered in the province.
During the period, the province also experienced a slump in the influx of domestic investment as we attracted only 50 domestic-invested projects, with a total registered capital of VND8 trillion ($382 million). But it is still an encouraging result in the current context.
On the brighter side, the provincial People's Committee has recently signed a memorandum of understanding on investment co-operation with BGT Slovensko Group from Slovakia.
According to the MoU, worth 378 million euros (about $500 million), the group will build infrastructure in the province's Lac Thinh Industrial Zone and carry out four projects within the zone, including plants to manufacture thermo-electric furnaces and solar cells and a beer factory with an annual capacity of 200 million litres.
The economic slowdown has also resulted in many slow-moving projects as investors have struggled to mobilise capital. What measures has Hoa Binh taken to limit such delays?
The economic slowdown has affected not only provincial investment attraction but also the implementation of licensed projects. Being aware of this, the province has reviewed and then classified difficulties facing investors in implementing their projects in order to offer effective assistance.
We will consider extending the deadline for investors to launch their projects if they have proper reasons for the delays, such as difficulties in capital mobilisation and slow land clearance. But we are determined to revoke the licences of those who intend to merely appropriate land but have too weak financial capacities to develop it.
According to the Provincial Competitiveness Index, Hoa Binh was ranked 60th among 63 provinces and cities in 2010. What is your assessment of this result and what will the province do to improve its investment environment?
In the Provincial Competitiveness Index (PCI) report for 2010 released by the Viet Nam Chamber of Commerce and Industry, Hoa Binh was ranked rather low. The report also noted that our three weaknesses were entry costs, transparency and access to information and informal charges.
Such assessment has become a motivational force for the province to further improve its business and investment climate. The provincial People's Committee decided to build up its action programmes on improving its competitiveness. Top priorities were given to reviewing administrative procedures and improving the quality of public services to better facilitate businesses.
In order to enhance information transparency, the province also released to the public information such as the provincial budget, social-economic development plans, local legal documents and land use plans to enhance transparency on investment policies.
With these efforts, we hope to considerably improve our PCI ranking in 2011, with Hoa Binh becoming an attractive investment destination for domestic and foreign investment.
Which sectors have been prioritised for investment?
We are seeking more investment in infrastructure, which is always considered as our greatest weakness. Agriculture and industries such as cement, wood processing, construction material production and tourism are also prioritised areas.
We have set a goal of attracting 500 investment projects and being home to 3,000 businesses in the next four years. — VNS