After the first month of the year with 9 days off for the Lunar New Year holiday, foreign investment attraction activities in Feb 2012 appear to have recovered their lively status, with many big projects signed and implemented.
As reported by the Foreign Investment Agency, as of 20 January 2012, total registered capital in January 2012 reached only 3 percent against the same period in 2011. However, Foreign Investment Agency Director Do Nhat Hoang said that these modest results do not reflect the final situation of FDI in January, nor the prospects of 2012.
Specifically, in January 2012, Lunar New Year holiday period lasted 9 days. A number of projects have completed investment certificate procedures but investors requested delaying the granting until the New Year to gain good luck.
Director Do Nhat Hoang said FDI attraction in February and the following months will have very positive changes. Some big projects got licensed in early February, 2012.
In Hai Phong, on 1 February, the City People's Committee granted an investment certificate for the tire manufacturing factory project of Bridgestone Corporation (Japan) with total registered capital of US$575 million in Dinh Vu industrial zone.
Mr Pham Thuyen, Head of Hai Phong Economic Zone Management Board cum Vice Chairman of Bridgestone Project Steering Committee, reveals that the Management Board will license FDI projects that have signed the MOU in 2012 totalling about US$1 billion, and Hai Phong will only select the good ones. It is very likely that a photocopy machine manufacturing project with total investment of US$200 million will be granted investment certificate in the first quarter of 2012.
For hosting an investment promotion conference in early 2012, Quang Ninh’s leaders reveal that the province will issue priority policies for enterprises engaged in 18 key projects, including Van Don International Airport and Van Don Casino. These 18 projects cover 5 areas, including tourism and recreational services; seaports, border and logistics systems; trade; infrastructure; and training and manpower supply services.
Applying an investment attraction approach in line with international practice and aiming to enable investors to easily access projects, in January 2012, Quang Ninh established an investment promotion agency, under the PPC, to directly support all project phases, including access to project documents, idea proposals and assistance in tackling issues faced by the investors.
In Nghe An, at the conference attended by 400 enterprises, many projects were signed. The notable ones include the investment agreement with Royal Food Co., Ltd (Thailand) for three projects in South East Economic Zone totalling VND840 billion, the agreement providing credit and banking services between BIDV and Construction Company No. 4, and principle agreement on funding to implement the hydropower project between BIDV and Joint Stock Hydropower Company.
Also at the meeting, the provincial people’s committee granted investment certificates for three projects, totalling over US$825 billion.
In the South, the New Year comes first with Ba Ria - Vung Tau Province which has granted investment certificates for four projects, with a total capital of VND29 trillion. Vice Chairman Ho Van Nien said the strategic investment attraction orientation of the province for the future is to focus on the two areas of logistics and supporting industries, to serve domestic consumption and export.
In Phu Yen, 2012 FDI is forecast to be greater than the previous year. Right after quarter 1, 2012, the province can claim a list of major FDI projects. The province is urgently speeding up the implementation of projects which already have investment certificates, such as Vung Ro Refinery Project and New City. These two projects are planned to commence by the middle of this year.
In Binh Dinh, much expectation is given to the oil refinery project in the non-tariff area of Nhon Hoi Economic Zone. Accordingly, if all investment registration procedures for this project are completed this year, it will be a great success.
On the national scale, Vice Minister of Planning and Investment Nguyen The Phuong unveiled the message of Vietnam on investment attraction in 2012. The message reveals that more importance should be attached to project quality, rather than the funding and number of registered projects. To this end, localities should be active and flexible in investment attraction.
Mr Nguyen The Phuong also emphasized the need to change the investment promotion approach. It is essential to identify investment partners, create a transparent investment environment, simplify administrative procedures and make selective investments.
Localities active promotion of investment from the early months of 2012, especially in key areas, is significant in creating resources for economic development, and simultaneously contributes to a better investment environment, as well as enhances the competitiveness of Vietnamese enterprises.
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