On August 20, Hoa Binh Province leaders will pay a working visit to South Korea to call South Korean investment capital into the province. On this occasion, reporter Tuan Anh of Vietnam Business Forum has a talk with Mr. Bui Van Tinh, Chairman of Hoa Binh Province People’s Committee, about this visit.
Could you talk about the purpose of this visit and province’s expectations?
Hoa Binh is a mountainous province with huge potential to attract investment capital. Hoa Binh Province People’s Committee has organised many investment promotion meetings in Vietnam and several companies have arrived to explore and invest in the province. At present, investors have registered 160 projects with combined investment capital of VND10,300 billion (US$643.75 million), including 14 foreign-owned projects. Hoa Binh Province People’s Committee will organise the investment promotion programme in South Korea, the first large-scale investment promotion activity in a foreign country. We hope this will bring positive results in attracting FDI capital.
In 2006, Hoa Binh ranked 18th nationwide in FDI capital attraction in terms of value, and we expect a breakthrough after the South Korean visit. We have chosen South Korea because this country has several investment projects in the province, including the US$30-million Phuong Hoang (Phoenix) Golf Course. Additionally, investment from South Korea into Vietnam is already significant. Thus, we expect to realise two main goals. On the one hand, we continue to give priority and incentives to Vietnamese investors in fields where they do well. On the other hand, we will step up efforts to call foreign investment for high-tech, capital-intensive and export-oriented fields. Foreign projects will help intensify the transformation from an agriculture-based economy to an industry and service-oriented one. Besides, we also give priority to environment-friendly projects, not simply attracting investment capital at any cost.
During this visit, what is the main purpose of the People’s Committee in investment capital attraction?
The primary purpose is to call capital for infrastructure projects, including the extended Lang - Hoa Lac expressway linking Hanoi City to Hoa Binh City via Ha Tay province. The expected BOT (Build-Operate-Transfer) project, approved by the Prime Minister, needs an estimated investment of US$200 million. We know this project will open doors for investors to Hoa Binh and help the establishment of urban, industrial, tourism and service quarters along the expressway. Thus, we will highlight investment projects in the BOT mode. At present, we are cooperating with Vietnam National Oil and Gas Group (PetroVietnam) to build an industrial zone in Luong Son district along Lang-Hoa Lac expressway. Besides, we also call South Korean investors to develop urban, industrial and tourism complexes, as Binh Duong Province has done.
Are local industrial zones calling for investment in any specific industries?
Industrial zones we are calling investment for lie near Hoa Lac Hi-tech Park developed by Japan. We want Hoa Binh Industrial Zone to support Hoa Lac Hi-tech Park when it is overloaded. Apart from the two main fields of processing and hi-tech, we will discuss and study the potential in Hoa Binh province for construction materials and tourism. Currently, about six South Korean investors have registered to develop golf courses in Hoa Binh, but we have licensed only two because we want to have modern tourism zones next to golf courses, to become a comprehensive entertainment centre for the Red River Delta region, especially Hanoi.
How can Korean investors be convinced that Hoa Binh is an attractive investment destination in terms of administrative reform and site clearance?
Regarding administrative procedures, we will resolve shortcomings in the administrative mechanism. We will inform investors of our administrative procedures, land incentives, tax and environment policies to help investors know what they should do. These issues should be made public and transparent. Regarding site clearance, the province will create a land fund for industrial zones. Thus, industrial zones should avoid locating in cultivation areas, otherwise the province explains the advantage of the land use exchange to farmers, letting them know that land exchange is one way to escape poverty. At the same time, we will shift from the agriculture-based economy to an industry and service-oriented one. If possible, we will provide career training for farmers who gave land for industrial development.
In fact, Vietnam’s investment incentive policies are very good but the bureaucracy raises difficulties for investors. What are your commitments to make investors feel secure doing business in Hoa Binh?
The administrative streamlining will involve reshuffling civil servants. We will hold meetings on decentralisation and settlement of several levels and sectors to clear up difficulties for investors and local people. Particularly, we will clarify the functions, tasks and responsibilities of civil servants and organs. First of all, we will dismiss bad officials and open telephone hotlines for enterprises, investors and local people to contact provincial leaders at any time. Then, we will investigate and strictly punish bad officials. We will set up a “rapid response committee” to meet investors every week to minimise the time required to complete administrative procedures. Investors can feel secure because we are determined to create a safe and effective investment environment.
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