Creating Best Investment Conditions

Located in the northern central region, Nghe An province serves as an important role in economic, commercial and tourism exchange with other Southeast Asian countries and the rest of the world. Possessing plenty of advantages such as a 419-km national borderline with the Lao People's Democratic Republic; a 82-km coastline; many traffic arteries like North - South railway, National Road 1A, Ho Chi Minh Road, National Road 7, National Road 46 and National Road 48; Vinh Airport with direct routes to Ho Chi Minh City, Hanoi and Buon Me Thuot City; and Cua Lo deepwater seaport (kicked off on December 8, 2010), Nghe An is becoming a more attractive destination for investors. On the occasion of the Conference on Promoting Investment into Northern Central Provinces to be held on October 17, 2011 in Vinh City, Nghe An province, Vietnam Business Forum interviewed Mr Ho Duc Phoc, Chairman of Nghe An People’s Committee. Ngo Khuyen and Phan Quang report.

While sharing similar characteristics with other northern central provinces, Nghe An has its own competitive edges. First of all, it is the largest province in the country with nearly 16,500 square kilometres. Secondly, it has rich natural resources. On the terrain running downward from high mountains in the west to deltas and islands in the east, Nghe An has found rare precious metals like gold, tin, lead, copper, zinc, white marble (particularly Quy Hop white marble - a famous export); limestone and construction stones with each having reserves amounting to over 1 billion tonnes; forests with a reserves to 52 million cubic metres of timbers; and seafood with annual fishing output of 80,000 tonnes. These resources enable the province to develop different industries. Thirdly, Nghe An is the fourth most populous province in the country with over 3.1 million people. Local people are intelligent, hardworking, studious and diligent.

 

By tapping these advantages, Nghe An has made rapid economic growth. In the 2006 - 2010 period, its average annual GDP growth reached 9.54 percent. In 2010 alone, it saw a GDP growth of 10.4 percent and licensed 105 projects with a total investment capital of VND57,752 billion. It also collected VND5,541 billion for the State Budget.

The province also established spearhead industries, including agro-forestry and seafood processing, material construction production, mining, and consumer goods production. Many industrial parks have been established, including Nam Cam, Bac Vinh and Cua Lo (a total area of 1,300 ha). The 18,750-ha Dong Nam Economic Zone is considered a strong momentum for economic development in the future. Trade and services have also expanded strongly as more and more economic sectors get involved in providing goods and services. Import and export value has rapidly grown up. Developing agriculture not only ensures food security and boosts up commerciality. Many specialised farming areas have been formed, including Nghia Dan, Quy Hop and Tan Ky (sugarcane), Thanh Chuong and Anh Son (tea), Nghi Loc and Dien Chau (groundnut), Quynh Luu and Yen Thanh (pineapple).

 

However, those achievements are below the local potentials and the province remains poor and its people are living in hardship. Nghe An is determined to pick up the growth pace.

 

We are heading for three objectives. The first is to increase the quality of growth in a bid to become an above-average province in the northern region in 2015. The second is to create the foundation to become an industrialised locality by 2020. The third is to build Vinh City into an economic and cultural centre of the northern central region. Nghe An is determined to keep the annual GDP growth of 11 - 12 percent in the 2011 - 2015 stage. By 2015, its economy will be constituted by 39 - 40 percent of construction and industry, 39 - 40 percent of services, and 20-21 percent of agriculture. The province will collect VND9,500 - 10,000 billion for the State Budget, earn US$500 - 550 million from exports; and reach GDP per capita of VND33-34 million in 2015.

 

To realise the above objectives, the province is trying to create a favourable environment to attract outside investment capital, promote local resources to expand production and business activities, especially industry and services. It will accelerate the construction of social and economic infrastructure in special regions and on a general scale.

 

Nghe An is centrally mobilising available resources and speeding up infrastructure construction in order to create momentums for economic development. Crucial projects include the upgrading of Hoang Mai Town in 2012 (area: 2,000 ha; population: 100,000 people; grade: third); the upgrading of Vinh Airport to make it one of five airports international airports in the central region, the construction of coastal roads like Nghi Son - Cua Lo and Vinh - Cua Lo; and construction of Quynh Lap power plant.

As regards tourism infrastructure, Nghe An is picking up the pace of the projects of conserving and restoring Kim Lien cultural and historic site for tourism development. It also takes care of building the tourism chain of Cua Lo - Vinh - Nam Dan - Pu Mat - Giang Son - Km 0 - Hang Bua Cave - Sao Va Waterfall - Quynh Phuong Beach - Con Temple. It also steps up the restoration of Le Hong Phong and Xo Viet Nghe Tinh historical sites. Last but not least, it is upgrading health and education infrastructures, particularly the 700-bed Vinh General Hospital.

 

Nghe An continues training, retraining and using human resources effectively. While improving the quality of education, it allows various forms of schools like half-state school, private school etc to mobilise all resources for human resource development. The province, at the same time, gradually consolidates the teacher workforce and develops vocational training centres. The immediate tasks are to expand investment for Vinh University and Medicine - Pharmacy University, and local vocational training system.

 

Besides, the province is speeding up the administrative procedure reform towards one-door mechanism. It is also stepping up the planning and construction of industrial parks and industrial complexes in Quynh Luu, Nghia Dan, Do Luong, Con Cuong and other districts, especially completing the detailed plan for Dong Nam Economic Zone.

 

Nghe An is committed to creating favourable conditions for investors and business community. A friendly and effective investment environment will help us realise our growth objectives.