Over the years, central Binh Thuan province has become a favourable destination for many local and foreign investors with big projects. Vietnam Business Forum reporters had an interview with Nguyen Duc Hoa, Vice Director of the provincial Department of Planning and Investment, on the province’s development orientations.
How has investment attraction and promotion supported Binh Thuan’s transitioning economic structure?
Last year, Binh Thuan lured 131 projects worth VND22.98 trillion, up 33.6 per cent on-year. The tourism sector accounted for 37 projects, bringing in revenues of over VND19.2 trillion; agriculture with 35 projects of VND937 billion; aquaculture with three projects valued at VND44 billion; industrial-commercial-service industry with 40 projects of VND2.73 trillion; petroleum sector with 15 projects worth VND48 billion; and one residential project valued at VND15.4 billion. Last year, the province licensed 10 new foreign direct investment (FDI) projects capitalised at US$425 million. As of December 31, 2008, the province had 905 projects totaling VND59.5 trillion. From now to 2020, Binh Thuan will focus on industrial and service development. The industrial sector is aimed to make up 40 per cent of the province’s total GDP in 2010 and 48 per cent in 2020 and the services sector 40 per cent and 44 per cent respectively. The province has paid attention to investment promotion in the past. Industrial and handicraft production value was estimated to reach VND4.6 trillion last year, representing an annual rise of 24.8 per cent in 2006-2008. Policies to support economic sectors help to diversify products for export. Currently, Phan Thiet Industrial park (IP) is in its second phase, while Ham Kiem I and II are under construction. Meanwhile, the prime minister agreed to add Tan Duc and Son My IPs into the national IP list which is planned to be set up by 2015. Investment preparation for these IPs is being carried out. The detailed planning of Tuy Phong IP has been completed. The provincial People’s Committee has decided to establish 15 industrial and handicraft clusters, including 10 approved for construction. At present, the four clusters, namely the south of Phan Thiet fish port, Me Pu, Vu Hoa and Hoa Phu are under construction. The province has built 21 handicraft villages with construction being implemented on the two brocade villages of Phan Thanh and Lal Da.
Total retail value of goods and services was estimated at VND10.8 trillion in 2008, witnessing an annual rise of 13.5 per cent in 2006-2008. The province has put into use Co.opmart Phan Thiet supermarket and is calling on investors to enter Vinatex Mart Phan Thiet, Mui Ne, Ham Tien, Bac Phan Tiet and Lagi trade centers. Last year, trade, investment and tourism promotion activities have been concentrated in key markets besides traditional markets such as Japan, China, Australia, Russia and Germany. Besides, the locality has attended to potential promotion and investment invitation at fairs held inside and outside the country. This is an opportunity to seek investors and encourage local firms to expand markets and boost exports.
What are the province’s socio-economic development measures in the coming time?
Over the past recent years, Binh Thuan has carried out many measures for socio-economic development. The province has submitted a socio-economic development plan until 2020 to the prime minister, aiming to develop economic sectors properly, with focus on ports, industrial parks, electronics and dragon fruit export, rubber and tourism. Binh Thuan has set a goal to obtain average GDP growth of 14.32 per cent in 2006-2010 period. The rate is expected at 13.5-14.3 per cent between 2011 and 2015 and at 12-12.85 per cent between 2016 and 2020. Per capital GDP in 2010 is hoped to increase 3.24 times compared to 2000 and 1.84 times against 2005. The per capital GDP growth in 2015 will be up by 1.78 compared to 2010 or 5 times compared to 2000. The 2020 rate will increase by three times against 2010 or 9.8 times against 2000. The GDP ratio in the industrial-construction sector is forecast to grow to 39.9 per cent in 2010 and over 48 per cent in 2020 and the service ratio will be 39.6 per cent 44 per cent respectively. Meanwhile, the GDP proportion in the agricultural industry will reduce to 20.5 per cent in 2010 and 7.8-8 per cent in 2020. Export turnover gained an average annual increase of 19.9 per cent from 2006 to 2010 and some 17-18 per cent between 2011 and 2020. Total investment capital is expected to hold 45-48 per cent of GDP in 2006-2010 phase and 43-45 per cent in the 2011-2020 period.
More investors are coming to the central region? What is the province’s strategy to attract investment?
The central region has seen a sharp increase of investment with big projects licensed into Dung Quat and Open Chu Lai economic zones. Despite not being located at the key central economic zone like Hue, Da Nang and Quang Nam, the province has made an effort to improve its investment environment. It has accelerated administrative reform, and upgraded infrastructure and personnel training to draw more investors. In the time to come, Binh Thuan will prioritise tourism and service projects. It is offering very favourble conditions for investors.
Vietnamese
