According to Do Nhat Hoang, director of the Foreign Investment Agency, the region should take the initiative to develop its infrastructure and quality of human resources in order to take advantage of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) Agreement which Viet Nam and 10 other member countries signed on March 8 in Chile.
Viet Nam, with low cost labour and competitive advantage, is among three ASEAN countries which are on the investment radar.
Meanwhile, Nghe An Province has enjoyed significant growth in investment inflow in the past 10 years thanks to its enormous efforts in building infrastructure and improving the investment climate and business conditions.
The north central coastal province has drawn 980 investment projects (927 domestic and 53 foreign direct investment projects) with total registered capital of VND276 trillion (US$12.1 billion) in the last 10 years, a record high compared to the previous periods, a provincial People’s Committee’s report showed.
|Nghe An lures investments|
In 2017 alone, the province inaugurated 176 new projects with combined registered capital of over VND14.5 trillion.
Dairy firm TH Group has invested a total of VND65 trillion in this region, including a $1.2-billion hi-tech concentrated dairy and fresh milk production project. Sabeco has two projects worth a combined VND2.4 trillion. PetroVietnam has four projects with total investment capital of VND7.5 trillion. Hoa Sen Group has two steel projects worth VND7.3 trillion. Vingroup invested in a resort complex worth VND900 billion.
Many foreign companies have also opted to invest in Nghe An, such as WHA Group’s $1 billion industrial park construction, the $30 million Hitech BSE telecommunications electronic equipment factory and Mavin AustFeed’s VND325 billion cattle feed plant.
Increasing investment has helped the province shift its economic structure towards modernity, contributing to the growth in local budget revenue, from VND4.44 trillion in 2009 to VND12.03 trillion in 2017, creating tens of thousands of jobs for local workers. The province’s per capita income has increased to VND29 million ($1,272) per year.
Strongly improving investment climate
Nghe An is one of the few provinces which have established an investment promotion and support centre under the provincial People’s Committee. This one-stop agency has helped reduce procedures for investors. The authority has also actively engaged in direct dialogue with the business community to listen to solve problems quickly.
In 2009, the province initiated the first investment promotion conference with the participation of three parties (authority, investors and creditors) which aimed to resolve problems for businesses, enhancing the business environment and attracting more investment.
|Prime Minister Nguyen Xuan Phuc will attend the 10th investment promotion conference in Nghe An Province on March 10. The provincial authority will present its achievements in investment attraction in the province in the past 10 years, as well as introduce its socio-economic issues and investment environment and policy. The Government leader will deliver a speech, giving direction for the province’s investment and socio-economic development in the coming years. The conference opens investment opportunities for businesses in the region. It is expected to draw 1,000 delegates this year, including state management agencies, embassies, international financial organisations, big domestic and foreign corporations and potential investors.|
The “Meeting Investors”, with the participation of the Prime Minister and representatives of leaders of central and local ministries and sectors, has become Nghe An’s iconic annual event with entrants increasing from 200 to about 1,000 visitors this year.
Along with attracting investment by the red carpet and support policies, the provincial authority has been accelerating the planning for infrastructure development, especially transportation, to ensure the favorable movement of goods and services.