On October 17, 2011, in Vinh City, Nghe An province, the Conference on Promotion of Investment in North Central Vietnam will be held with the attendance of Prime Minister Nguyen Tan Dung, officials of central and local authorities, organizations, associations and experts from home and abroad. The conference will discuss various topics: infrastructure development, energy saving, and human resources. There will be other activities such as exhibition on the potential of provinces in North Central Vietnam, and visits and surveys of industrial zones in the region. It is also an opportunity for State officials, organizations, investors, businesses, and local and foreign experts to meet, discuss and seek investment and cooperation opportunities in the provinces of North Central Vietnam.
North Central Vietnam includes provinces of Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri and Thua Thien Hue, with some 10 million people on over 50,000 square kilometers sharing similar geographical, social and economic conditions. In recent years, North Central Vietnam recorded high growth rates, attracting investment for socio-economic development and upgrading living standards. However, investment attraction and provincial competition indexes remain lower than their potential.
Rich potential
North Central Vietnam is located next to key economic regions of Northern Vietnam and Central Vietnam, on the North-South axis of highways and railways and East-West network of Highways 7, 8 and 29 linking Laos with the East Sea. It has networks of airports (Vinh, Dong Hoi and Phu Bai) and seaports (Nghi Son, Cua Lo, Cua Hoi, Vung Ang, Son Duong, Cua Gianh, Nhat Le, Cua Viet, Thuan An and Chan May). North Central Vietnam has many border gates with Laos, namely Nam Can (Nghe An), Cau Treo (Ha Tinh), Cha Lo (Quang Binh), and Lao Bao (Quang Tri). Those comparative advantages have been developed by central and local authorities with increasing efficiency.
The region is rich in minerals, especially limestone for producing building materials. It has also potential for developing other industries such as wood processing, mechanics, garment, and food processing. In particular, it is an important tourism centre of Vietnam with Phong Nha – Ke Bang caves, Hue ancient royal capital and Ho citadel, facilitating cultural and economic cooperation with other countries in South East Asia and beyond.
Presently, North Central Vietnam has five coastal economic zones: Nghi Son (Thanh Hoa), Dong Nam (Nghe An), Vung Ang (Ha Tinh), Hon La (Quang Binh) and Chan May (Quang Tri); and three border gate economic zones: Lao Bao (Quang Tri), Cha Lo (Quang Binh) and Cau Treo (Ha Tinh). These are comparative advantages for investors in North Central Vietnam enjoying State support in infrastructure and preferential treatment.
Speaking at the press conference prior to the Investment Conference, Mr Ho Duc Phuoc, Chairman of Nghe An People’s Committee, said: “We wish to attract many projects to North Central Vietnam and investors will find high and sustainable economic efficiency. With infrastructure network to be completed and upgraded, the provinces in North Central Vietnam will become more attractive destinations in the coming years.”
Open Opportunities
By September 26, 2011, six provinces in North Central Vietnam have attracted 243 foreign investment projects with capital of US$19.9 billion, 10 percent of total foreign investment capital in Vietnam. Though quite big in capital, the investment projects focus only on certain areas as mining, steel and cement. Meanwhile, in comparison with Binh Duong province (5th in FDI ranking), 6 provinces of North Central Vietnam have only 1.4 times the investment capital (US$19.9 billion compared to 14.5 billion) and 15 percent of projects. Therefore, provinces of North Central Vietnam lag far behind other regions of Vietnam in investments in general, foreign investment in particular.
As certain areas and regions have become “investment saturated” due to limitation of land (land already occupied by investment projects or reserved for food security), shortage of manpower and environment pollution, many investors in Northern and Southern Vietnam feel the need to invest in new regions to find more land and manpower.
Meanwhile, each province in North Central Vietnam has its own advantages. Ha Tinh is becoming a steel centre. Thanh Ha is for oil refinery (Nghi Son) and cement. Nghe An, with airport, seaport, and a network of universities and colleges is becoming a centre of industry-service and education for the whole region. Meanwhile Thua Thien Hue has not only Chan May – Lang Co economic zone to attract investments for industrial production, but also advantages for economic and tourism development with the East-West corridor linking to Laos, Thailand and Myanmar. If the diversity of the region can be developed, provinces in North Central Vietnam will have more partners and projects suitable for their prosperity.
To recover from the world economic recession, investors may find new places for more efficient investments. The Conference for Investment Promotion in the Provinces of North Central Vietnam is for that goal and serves as a bridge for investors in the coming years.
However, to attract more investment projects, together with existing potential, advantages and new opportunities, the provinces of North Central Vietnam must improve the investment environment. Mr Do Nhat Hoang, Head of Department of Foreign Investment, Ministry of Planning and Investment, said that the provinces of North Central Vietnam must dismantle three hurdles: workforce, administrative formalities and infrastructure network. Those are also the main issues to be discussed at the conference in Vinh City on October 17.
Ngo Khuyen
Vietnamese
