In 2010, Ha Tinh gained 10 ranks in the Provincial Competitiveness Index (PCI), ranking 37th among 63 cities and provinces. Vietnam Business Forum discussed with Mr Phan Cao Thanh, Director of Ha Tinh Department of Planning and Investment on the issue, Bich Huong reports.
Could you talk about the experience of the province in gaining high PCI?
In recent years, Ha Tinh has applied comprehensive measures to improve the investment environment, facilitating businesses in implementing projects in three main areas:
One, all-round administrative reform has been accelerated in the entire province. Ha Tinh set up one-stop shop for all administrative formalities, receiving business documents directly or by Internet, completing business registration in three days (five days for businesses under the management of the central government), and only one day for urgent cases.
Two, all resources have been mobilized to develop technical and social infrastructure with high priority for key economic zones such as Ha Tinh City, Vung Ang, Cau Treo border gate, industrial zones and centres, and craft villages. With road networks and telecommunications upgraded, and Vung Ang deep-water port to be completed, the province can meet the demand of investors for economic development.
Three, policies and mechanisms have been developed to encourage investors, such as preferential treatment on taxes, land use and clearance. The province granted financial support for road building, workforce training, and development of new products. Investors in Vung Ang and Cau Treo economic zones will benefit from reduced taxes and land rental, and facilities and infrastructure built in time on their project sites.
As a result, PCI of Ha Tinh has increased significantly in recent years.
Even with a higher PCI, unofficial spending of the province is listed at the bottom among coastal provinces of Central Vietnam, can you comment on this?
First, most businesses in the province are small or just emerging from household businesses, lacking information and information technology. Second, difficulties remain in one-stop shop, access to websites and slow communications. Besides, coordination among related authorities remains poor and untimely.
To overcome those shortcomings, the province has issued regulations on registration with transparency on administrative formalities at all levels to process at one-stop shop or inter-related office. For instance, due to slow access to information, businesses now can rely on one office to meet their demand. The province will sponsor annual meetings with businesses to share experiences and dismantle constraints to facilitate business activities.
Could Ha Tinh help local FDI enterprises reduce “market integration fees”?
Unlike previous years, PCI 2010 includes survey on the FDI sector, and FDI enterprises have significant impact on PCI 2010. To reduce “market integration fees” for FDI enterprises, Ha Tinh has implemented the following measures: administrative reform; increasing human resources in both quality and quantity, especially training and transforming the workforce, and creating jobs for the people in project locations. The province will help businesses access related information and State policy, make public socio-economic programmes of the province, accelerate land clearance, pursue the observance of the investment law, and remove hurdles in granting and amending investment licenses, update list of investment projects. Finally, the province will upgrade the capacity of managers and staff members in charge of granting investment licenses in the province.
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