Efforts to Better Investment Climate

In 2011, Tra Vinh province licensed 17 projects with a combined registered investment capital of VND1,051.6 billion and US$9.2 million, of which seven were foreign-invested. They mainly registered in sectors of apparel, textile, mechanical equipment, automotive electricity, plastics, coconut and animal feed. Compared with neighbouring provinces, Tra Vinh has a small number of enterprises and a modest scale of investment projects. Regarding the investment environment, according to general reports by the Vietnam Chamber of Commerce and Industry (VCCI), the provincial competitiveness index (PCI) of Tra Vinh had pretty good rankings in many years. The province has made great efforts to improve the investment environment, making it more flexible, transparent and attractive in the eyes of investors.

 

In the coming time, we continue attracting more investment capital towards rapid and sustainable development. The Department of Planning and Investment has advised the Tra Vinh Provincial People's Committee to coordinate with central agencies and other provincial governments to organise a number of investment promotion conferences in Vietnam and abroad to attract investors to invest in infrastructure development in Dinh An Economic Zone and industrial zones, aquaculture, high-quality rice production, processing of agricultural and aquatic products for export, high tech, supporting industries, electronics and engineering. Our desired destinations are investment projects in Dinh An Economic Zone, Cau Quan and Co Chien industrial parks, and small-scaled industrial complexes.

 

Tra Vinh province is bordered by Ben Tre, Vinh Long and Soc Trang provinces and the East Sea. It is surrounded by the Tien and Hau Rivers; thus, waterway transportation is very convenient. The Government invested to dredge a passage for big ships of 20,000 tonnes to move on the Hau River to the sea via Duyen Hai district. This is a favourable condition for Tra Vinh to build the Tra Cu seaport system and an international transhipment port in Dinh An estuary.

 

As regards road transportation, the province has three main national roads, namely 53, 54 and 60, connecting Tra Vinh province with Vinh Long, Ben Tre and Soc Trang provinces. Currently, the distance from Ho Chi Minh City to Tra Vinh is 200 km if you go along National Road 1A and National Road 53, but only 130 km if you choose National Road 1A and National Road 60 (Rach Mieu and Ham Luong bridges have been put into use). In 2010, the central Government started construction of Co Chien Bridge and upgrading and expansion of National Road 60 connecting Tra Vinh with Ben Tre. When these works are completed, they will link Tra Vinh with provinces in the region, Ho Chi Minh City and the Southeast region. Then development of investment, trade, tourism, import and export will be more convenient. In 2012, Cau Quan - Dai Ngai ferry that connects Tra Vinh with Soc Trang along National Road 60 will be completed. The transportation between the province and Southwest localities will be very favourable. Now, all communes and towns in the province have direct access to the national power grid. The province is building the 4,400-MW Duyen Hai power centre in Duyen Hai district to ensure stable electricity supply for socioeconomic development demand.

 

As a coastal province located between the two largest estuaries in the region and endowed with fertile soil, temperate climate (27C on average) and less vulnerability to storms and floods, Tra Vinh province, like other Delta Mekong provinces, possesses numerous advantages and potentials for economic development, particularly agriculture, fisheries, trade and tourism. Its key exports include shrimp, catfish, agricultural products, foodstuffs, coconut products, garments, chemicals, printing supplies and pharmaceuticals. Its products have reached 34 countries and territories around the globe.

 

Tra Vinh province is implementing all preferential policies provided by the central Government like Decree 124/2008/ND-CP dated December 11, 2008 on implementation of some articles of Corporate Income Tax Law. The time limit for preferential tax rates is at least 10 years and at most 30 years; tax rate reduction is 25 percent at most and 10 percent at least, depending on business sector and location. Corporate income tax exemption is at least two years and at most four years. Tax rebate has only a single rate of 50 percent, with an effective time of 2 - 9 years, depending on sector and industry.

 

As regards infrastructure incentives, all projects located in industrial zones, fishing ports and landing sites will have roads, medium voltage power lines and water supply systems built by the State Budget to the boundary of their business establishments. The degree of support varies, depending on the importance of projects to local socioeconomic development. Land incentive is based on the current regulations of the Government, with the highest leasing term of 50 years. Tra Vinh also exempts land rents from three years to 15 years for projects on the list of investment encouragement. Beneficiaries are projects reallocated to other places because of environmental pollution, projects in poor districts, projects on the list of investment encouragement, and projects employing more than 500 workers. The province will fund personnel training for labour-intensive projects but the funding is limited at VND100 million a project.