Long An province does not attract investment projects at any cost. It will resolutely turn down environment-polluting projects and only accept quality, effective and appropriate projects. To do this, the province is trying to reform administrative procedures, complete legal framework, approach international regulatory systems, improve its access to foreign capital sources, and overcome existing weaknesses in investment attraction in the coming time.
Remedying weaknesses
The Department of Planning and Investment said Long An province licensed 285 new enterprises with a total registered capital of VND7,708 billion in the first six months of 2011, equal to 67.9 percent of projects and 107.5 percent of value in the same period in 2010. At present, the province has 6,708 operational enterprises with a total registered capital of VND205,777.93 billion (US$10 billion). As of June 30, 2011, the locality licensed 378 foreign-invested projects capitalised at US$3,245 million, including 36 projects worth US$44.95 million in the first six months in 2011, equal to 200 percent of projects and 27 percent of investment value of the same period of 2010.
Actually, these outcomes are considerably below its potential. To increase investment, Long An has managed to limit existing shortcomings to create a better investment environment. Speaking of this matter, Mr Nguyen Minh Ha, Director of Department of Planning and Investment of Long An province, said, “Long An province is an element of the southern key economic zone of the country. It links southeastern and southwestern regions of Vietnam. It is an expansive industrial and urban zone of Ho Chi Minh City. It has the estuary of Soai Rap River running into the East Sea (South China Sea). It also shares a border with Cambodia, with the two international border gates of Binh Hiep - Moc Hoa and My Quy Tay - Duc Hue. These are favourable conditions for Long An to develop its economy and boost trade with other localities and the world. However, social and economic infrastructure remains weak and inconsistent, especially in transportation, electricity and water, while the province's investment capital sources are limited and not enough to meet the demand."
He said, to solve this problem, the province will give priority to investments for artery routes like National Road 1A, National Road N1, National Road N2, National Road 50, National Road 62, Ho Chi Minh City - Trung Luong Highway, Belt Road 3, and Belt Road 4. The province has two main water routes, Vam Co Dong and Vam Co Tay, joining together with the Soai Rap River estuary. The province is home to Port Cluster 5, now underway, designed to serve importation and exportation in the southern region.
To create more financial sources for traffic system construction, the province has announced a list of priority projects allowed different forms of investment, including public private partnership (PPP). It is certain that transport infrastructure investment is now a top priority of the province.
Giving explanations of some shortcomings in development planning, Mr Ha said planning failed to catch up with economic development demand, leading to the waste of resources and existence of challenging social issues like ensuring good livelihoods for people who have given up their land for new investment projects. For this reason, Long An province is carrying out a socioeconomic development strategy for the period till 2020, aiming to become an industrialised province and troubleshoot planning shortcomings. The Department collaborated with AMEC Company and other related units to advise the Provincial People’s Committee to make a master plan for socioeconomic development till 2020 and vision to 2030 to ensure the rational and sustained development of the province.
Saying no to ‘investment attraction at all costs’
The economy of Vietnam in general and of Long An in particular is integrating into the world. Thus, a primary requirement is to complete an international standard legal framework as soon as possible. Besides, the province improves its capacity of accessing foreign capital sources. At present, competing in low land rent and low-paid labour is secondary, while the most important factors are public administration, human resources, and transport infrastructure. These are all matters of concern for Long An province.
According to the Department of Planning and Investment, foreign direct and indirect investment sources will continue playing very important role in provincial socioeconomic development in the coming time. One of the major objectives the province is pursuing is to promote investment into high-tech infrastructure development projects. The province is determined to reject all projects that may adversely affect the environment.
Mr Ha added, “Objectively speaking, foreign investment accounts for a large proportion of the provincial economy, but I think internal forces remain a decisive factor. Long An must develop a really powerful, sustainable economy. Foreign investment attraction will continue to play an important role in the process of economic restructuring of the province. Meanwhile, foreign investors are creating opportunities for local firms to join the movement of technological innovation, advanced governance improvement and competitive enhancement."
Mr Ha affirmed that Long An province will continue stepping up administrative reform because this is still a weak point that foreign investors have repeatedly complained about. The Department will advise the Provincial People's Committee to create a synchronous procedure and mechanism for investment project licensing, review current mechanisms and policies to make timely changes, and quickly clear construction sites for investors.
Long An will focus investment on human resources. In the initial stage, to attract more foreign investment capital, the province has accepted labour-intensive projects to create jobs for local people. However, the province is now giving more priority to projects with higher intellectual and technical content, not labour intensiveness.
In 2011, Long An expects to attract VND13,850 billion of non-State investment capital, accounting for 81.5 percent of total investment. Mr Ha said the company will license projects in line with the provincial development orientation. “It is time for Long An to end the stage of attracting investment at all costs. To facilitate and promote sustainable investment, the province has hired a Japanese consulting unit to study the master plan for provincial development in the 2011 - 2020 period and vision towards 2030. To date, the draft is complete and many development orientations have been put forth,” said Mr Ha.
Ha Linh
Vietnamese
