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Dinh Vu

Local Economy

Last updated: Monday, April 23, 2018


Thai Nguyen Increasingly Attractive to Investors

Posted: Thursday, May 03, 2012

With efforts to promote its potential and advantages and mobilise maximum resources for economic development, Thai Nguyen has become one of the economic, industrial, commercial and tourism centres in the northern midland and mountainous region. Thai Nguyen province is increasingly attractive to investors. Vietnam Business Forum has an interview with Mr Nguyen Duc Minh, Director of Thai Nguyen Department of Planning and Investment, on this aspect. Ngo San reports.
What is your assessment of the investment attraction results in the province in the past few years?
To draw investment into the province, the Thai Nguyen People's Committee has directed its subordinates and localities to implement many solutions like seriously enforcing legal regulations on investment attraction, reviewing and amending overall social and economic development planning, and industry-specific planning, promoting advertisement activities, stepping up public administration reform, and raising awareness and accountability of individuals and State agencies in investment attraction.
In recent years, Thai Nguyen has achieved impressive results in economic development, especially investment attraction. From 2005 to 2011, the province approved 552 investment projects, of which 126 projects were located in industrial zones, 403 projects operated outside industrial zones, and 23 projects were foreign-invested. They leased 8,537 ha of land and registered to invest approximately VND171,000 billion. The industrial and construction sector attracted 335 projects which rented 1,880 ha, while the trade, service and tourism sectors had 74 projects using 1,509 ha of land.
What preferential mechanisms and policies has the province offered to investors to achieve these results?
To gain the above results, basing on the government’s investor preference framework, the Provincial People’s Committee issued a number of investment attraction mechanisms and policies like Decision 1205/2007/QD-UBND dated June 22, 2007 of Thai Nguyen People's Committee issuing regulations on implementation measures and investment incentives in the province; Decision 884/QD-UBND dated April 24, 2008 of the Provincial People’s Committee on the single-window public administration reform mechanism; the investment environment improvement project in 2010 - 2015; adoption of five programmes, 11 plans and 45 projects for the 2010 - 2015 period; Decision 39/2010/QD-UBND dated December 1, 2010 of the Provincial People’s Committee on regulations on investment support in the province; and Directive 08/CT-UBND dated March 23, 2011 of Chairman of Thai Nguyen Provincial People’s Committee on strengthening management and investment cooperation in the province.
In addition, the province increased the organisation of seminars and dialogues with investors to address their difficulties in the process of implementing production and business projects in the province.
Could you tell us the investment fields where Thai Nguyen province holds advantages in attracting investors?
Endowed with favourable climate and soil, Thai Nguyen province can highly develop agriculture and forestry. Thai Nguyen tea, especially Tan Cuong brand, is a very well-known product in Vietnam for many years. The province has over 17,660 hectares of tea, ranking second in the country, and has more than 30 processing facilities. The province is borrowing money from the Asian Development Bank (ADB) to produce Thai Nguyen tea with special properties and high quality. Thai Nguyen encourages investment in high-end tea processing for domestic consumption and for export.
Thai Nguyen also has many kinds of minerals and is well poised for the development of metallurgical and mining industries. The province encourages all investors to invest in downstream mineral processing. The locality holds the second largest coal reserve in the country, with estimated reserves of 15 million tonnes of fat coal and 90 million tonnes of coke. It also has an estimated reserve of 18 million tonnes of titanium. It is also rich in tin, lead, zinc, tungsten, gold, copper, nickel, mercury and others. Currently, tin is being mined and exported. The tungsten ore mine in Dai Tu district is being explored by a foreign company. The province also has materials for construction material production like cement, paving stones and others.
As regards tourism potential, Thai Nguyen province is known for scenic landscapes and large lakes, along with historical relics, architectural works, artworks, festivals, and unique cultural traditions of ethnic groups. Typical tourist destinations include Nui Coc Lake, ATK (safety zone in war time) historical site, Phuong Hoang Cave, Mo Ga Spring, Khuon Tat Waterfall, Duom Temple and Hang Pagoda, but they largely remain untapped. Thai Nguyen province is in need of huge investment capital for this sector, including a high-grade hotel system.
Regarding human resources potential, Thai Nguyen province now has nine universities, including seven affiliated to Thai Nguyen University, Transport University and Viet Bac University. Besides, the province is also home to 24 colleges, high schools, secondary technical schools and vocational training schools capable of meeting the demand for scientists, technicians, and skilled workers not only for the province but also for others. With more than 550,000 people of working age, the province has an abundant workforce for the cause of industrialisation and modernisation.
In addition, the Provincial People's Committee approved many investors to self-plan investment projects to attract capital like Nui Coc Lake tourist site, western administrative zone of Thai Nguyen City, Yen Binh agricultural service complex, ATK zones, industrial parks, urban areas, and Song Cau riverside urban zone.
What are key tasks for Thai Nguyen province in the near future to further enhance and improve its investment attraction?
In the coming time, the province will continue to direct relevant units to base on the contents of the "Improving investment environment in 2011 - 2015 period" project to work out local and sector-specific action programmes and plans.
The province will continue promoting administrative procedure reform, apply single-window administrative mechanisms, ensure publicity and transparency in administrative bodies at all levels, inform and publicise administrative regulations and procedures, build infrastructure for key projects; and create land fund for investors.
In addition, we will intensify communication and advertisement activities, and organise conferences and meetings in Vietnam and in other countries to introduce local potential and advantages to investors. We will issue books on investment promotion as well.
The province will review public investment projects in order to devote resources for urgent projects as directed by the Government. Thai Nguyen will also restructure and diversify products, research and develop central and priority products to fit the trend of international economic integration, vigorously develop high-demand industrial products capable of competing with domestic and imported rivals, and step up agricultural and forestry processing industry. The province will aim to create employment.
The locality will encourage and apply industrial development policies and mechanisms in support of agricultural development and countryside economy; invest to develop supporting industries to provide inputs for domestic and foreign industrial production establishments; and develop prioritised and driving industries using hi-tech.
The province will effectively manage the planning and development of urban and residential zones, and attract investment capital into approved ones. It will review and supplement industrial development plans with the focus on industries of high added value and energy conservation. Thai Nguyen will check ongoing investment projects and revoke the investment licences of sluggish projects and provide legal advance for enterprises, especially small and medium-sized enterprises.
The locality will select financially capable and experienced investors to develop infrastructure for planned industrial parks, and create clean land funds covering 30 - 50 ha for high-tech projects which will cause strong ripple effects on industrial development.
Thai Nguyen will give priority to industries using high technologies and technological innovation to exploit and process minerals and develop upmarket tourism. It will also prioritise infrastructure projects supporting socioeconomic development, social security projects and human resource development projects. It will effectively combine national target programmes with these projects to maximise capital productivity.
With respect to manufacturing projects, the province will step up investment attraction promotion and publicise administrative procedures concerning business affairs on mass media to attain the highest efficiency in attracting investment.
Relating to counterpart funds of the people in socioeconomic infrastructure construction, the province will continue mobilising all social resources, carry out site clearances to build transport infrastructure, and promote the public role in project supervision.
Pertaining to foreign capital investment, the province will accelerate ODA disbursement and usage. It will facilitate foreign-invested enterprises to expand operations and investment scales. It will also attract more ODA capital for urban infrastructure, health, education, agriculture and rural development, while encouraging more investment in high technology and supporting industries.
The province will enhance the operating quality of the steering committee for single-window mechanism application to ensure this mechanism to be applied effectively in Thai Nguyen.
The locality will strengthen inspection and supervision over investment projects, aiming to raise the pace of progress by registered investors.

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