Since the enactment of the Investment Law and the Decree 108/2006/ND-CP, Dak Lak province has seen better investment results. Investment projects have played important roles in restructuring the provincial economy. Reporter of the Vietnam Business Forum has a talk with Mr Tran Hieu, Director of Dak Lak Department of Planning and Investment, on investment attraction achievements and investment incentive policies.
What is your opinion about the implementation of agricultural and rural development projects funded by the German Government in Dak Lak province?
The Dak Lak rural development project (second phase) was funded by the German Government through its German Technical Cooperation (GTZ). The validity of the project is from January 2006 to December 2009. The programme includes such components as planning development and distribution of human resources; community forest land allotment; and highland agriculture (rural marketing and service). General criteria (six criteria) and second phase criteria (six criteria) have been completed by 60 per cent upwards. Some criteria exceeded the initial targets by 44 per cent.
To date, as many as 101 communes and towns in nine districts with 1,240 villages in total set up their plans and combined them with their district socioeconomic development plans. Expectedly, by the end of 2009, all districts will apply this process in setting up their plans.
Beneficiary regime in community development activities has successfully carried out in Cam and T’Ly villages of Ea Sol commune, Ea H’Leo district and in Krong Bong district. This will lay a foundation for the commune’s People’s Committee to review and issue technical process for community forest management and benefit-sharing regime and to allot forestland for participants. These processes received strong supports from local authorities and attracted interests from central authorities.
The rural credit and saving model has been effectively implemented in five districts (two project districts, Krong Bong, Krong Ana and Krong Nang) with 796 credit - saving groups and 14,314 members, in which ethnic minority peoples account for 244 groups and 3,283 members.
Regarding human resource development, this project assisted to send six provincial officials to follow master-training courses, to set up working groups: Provincial workgroup on Comprehensive Poverty Reduction and Growth Strategy (CPRGS), consulting group for Village Development Planning (VDP), consulting group for forestry, training of trainers (ToT).
How do investment incentive policies facilitate enterprises? Which are the effective investment fields in Dak Lak province at the moment?
Presently, the province is encouraging its investment in two directions: production investment in industrial complexes, and investment in key industries like processing, ecological tourism, cultural tourism, historical tourism and socialised fields.
Regarding projects in industrial complexes, apart from incentives provided by the Vietnamese Government (import tariff on machinery and equipment, land rental), to reduce infrastructural expenses for investors, Dak Lak province issued the Decision No. 1331/QD-UBND dated July 5, 2006 on using local budgets to invest in industrial complexes in the province and the Decision 43/2007/QD-UBND dated November 8, 2007 on supporting provincial budgets to invest in several items inside industrial complexes. Accordingly, the province will finance several items in industrial complexes such as site clearance, main road, water treatment facility, gate, fence and environmental impact assessment. Besides, the province is now applying lowest land rental to investors in industrial complexes and industrial parks.
Concerning projects investing in key fields outside industrial complexes and industrial parks, the People’s Council of Dak Lak province issued the Resolution No. 17/2008/NQ-HDND dated October 8, 2008 on investment assistance policies in Dak Lak province. Accordingly, the province will transfer cleared sites for investors, assist investors to build roads and power lines, train human resources, and apply lowest land rentals.
Thus, the province’s investment incentive policies will help enterprises to quicken preparation processes and reduce investment expenses as well as operating expenses when the projects start operations. With local potentialities and advantages, effectively invested fields include processing industry for coffee, rubber, hybrid maize, cotton and forest products; hydropower industry; ecological tourism; and supermarkets and commercial centres.
To facilitate investors from the licensing phase to project implementation, how will administrative reform be carried out in 2009?
Operations of the Dak Lak Department of Planning and Investment will be based on the principle of “The project of investor is the project of province.” In 2009 and in following years, Dak Lak province will advance administrative reform to reduce procedures and shorten the time of business registration and preparation. These will help investors quicken their investment projects in the province. Provincial authorities always keep an open eye on streamlining administrative procedures for investors. The province also set up the Trade and Investment Promotion Centre administered by the provincial People’s Committee to attract and guide investors to carry out their projects. Investment procedures are now solved by “one-door” regime, thus reducing the registration time to five working days. The one-door regime is applied to investment certification and investment project assessment.
How do you say about operating efficiency as well as implementation pace of investment projects in the province?
By the end of March 2009, the province has 249 valid investment projects with an aggregate investment capital of VND31,200 billion, in which 51 projects have been put into operation and nearly 200 projects are underway.
Implementation pace of several projects does not come up with expectations of the province. Apart from outstanding projects like Buon Kuop hydropower plant, Saigon Co-op supermarket and Fuso - Intimex supermarket, others projects like a garment and textile project by Vinatex Group is behind schedule. Recently, after the Vietnamese Government loosened anti-inflation monetary policy and applied economic stimulus packages, investment projects are moving at higher speed. Many projects have been kicked off and many are planned for the first half of 2009.
Since the start of 2009, the number of investment projects in Dak Lak fell over the corresponding period in 2008. However, with the economic stimulus packages of the Vietnamese Government, especially the second with interest rate subsidy for enterprises, investment activities will be given a facelift in the province in the coming time.
Reported by Thuan Hoa
Vietnamese
