Improving Investment Environment to Be the First Priority

Starting as a needy province with poor socio-economic conditions at the time of reestablishment in 1992, Ninh Binh has made great efforts and gained remarkable achievements in the last 2 decades.

 

Firstly, the economic growth rate has always been kept high at over 10%/year and, during the 2006-2010 period, at 16.5%/year. The economic structure has shifted in a reasonable and positive direction with the proportions of industry, agricultural and service at 49% - 15% - 36% respectively. In comparison with 1992, production value in 2011 of industrial-construction sector increased by 27.7 times; that of service was up by 12.4 times; of agriculture-aquaculture and forestry by nearly 2 times; contribution to State Budget by 84.8 times (VND 3,392 billion).

 

Agricultural, aquacultural and forestry production has been developed in the direction of manufacturing goods. In addition to producing high yield rice, Ninh Binh has promoted the production of high quality rice, formation of large model fields, and cultivation of the winter crop for domestic consumption and export. In 2011, production value was VND 86 million/ha, seeded food output was over 51.4 ten thousand tonnes and food output per capita was more than 566kg.

 

Secondly, the social-economic infrastructure, especially that of transport and water resources, has seen relatively comprehensive development. National Highway 1A, Highway 10 and provincial, district roads and thousands of kilometres of rural and urban internal roads have been constructed, rehabilitated, upgraded and strengthened. Besides, social-cultural infrastructure has also been improved to facilitate cultural, sport, educational and health care development.

 

Thirdly, the people’s life has witnessed significant improvement. Education, health care and other sectors have been strengthened, ensuring harmonization between the economy, which is regarded as the core, and cultural development, which is considered the foundation of social morale. The income per capita is currently 30 times as much as in 1992, putting the province in 5th position out of 10 Red River Delta provinces. 

 

Fourthly, local defence activities are fostered to ensure political security and social safety, as well as safe and sound life and environment for local residents. There have been reforms in the leadership of Party Committees from provincial to grass-roots levels, resulting in improvement of management and control of authorities and satisfaction of provincial development and reform needs.

 

The province has determined tourism as a mixed industry, aimed at developing sustainable tourism and gradually making it the economic spearhead. Targeting to receive 6 million visitors by 2015 (including 1 million international tourists), Ninh Binh is going to invest in comprehensive tourism infrastructure, pay attention to the construction of 3 star (or higher) accommodation sites with priority given to resorts; strengthen governmental control, expand markets, foster promotion activities, standardize and improve the quality of tourism resources, as well as raise community awareness of tourism development.

 

As for industrial development, the province has done its best to avoid constraining the growth of other sectors when exploiting each one. In the sector of manufacturing building materials, there are some minerals with large reserves and good quality such as limestone (tens of billions of cubic meters), dolomite (2.3 billion tonnes), clay and coal. At present, the local building material industry is on the way to stabilize production on a large scale. The provincial orientation aiming at in-depth economic growth, and proximate location with the Northern Key Economic Zone and on the national backbone transport route make preferential conditions for supporting industries and services. This promises to create opportunities for investors in fields of industrial production, distribution and finance.

 

Ninh Binh is targeting to ensure food security, own plenty agricultural products and many new crops of high economic value such as high quality rice, cucumber for export, chilli, squash, potato, fishery, specialty animals and modern agricultural development models. In the coming time, incentives will be given to investment in projects of sustainable agriculture development, application of modern technologies to provide high quality products to national and international consumers.

 

Recognising the importance of creating the clean-land fund in order to attract more investment, Ninh Binh Province has established Land Development Centre after Decree 69 came into effect. Ninh Binh is currently applying the lowest land lease rate. Annually, the province allocates about 15% of turnover from auctions for land use rights and land rents to contribute to the provincial land development fund, which then is used to implement site clearance and resettlement and create “clean land” for investors. Formation of large “clean land” areas for construction of concentrated industrial zones and complexes is crucial. Ninh Binh has carried out land acquisition, compensation and site clearance and created large enough clean land funds for 3 industrial zones of Khanh Phu, Gian Khau and Tam Diep. So far, two zones have been fully occupied, greatly contributing to industrial growth. The others and industrial complexes under planning have continued to receive special attention from the Provincial People's Committee, which is adopting necessary measures to create “clean land” funds prior to infrastructure construction. Currently, the province is going to introduce some preferential policies to encourage investors. The province is supposed to expand fields, modes and locations of FDI attraction, aiming at potential markets and international corporations. 

 

The projects in the list of those calling for investment mentioned in the decision of the Provincial People's Committee are assigned to Land Fund Development Centre so that they can conduct land acquisition, compensation, site clearance and create “clean land” before handing over to investors. It will create favourable conditions for their project implementation.

 

In the time to come, we will focus on addressing problems such as decreasing FDI; low investment in hi-tech fields. Ninh Binh will select and prioritize investors who have strong capital and friendly environment technologies. We will also continue to invest in infrastructure and agriculture.

 

Determination of Ninh Binh maintains for economic high growth rate, quickly making Ninh Binh a rather developed province in the Red River Delta. In the context that economic restructuring is considered the national core task, including investment and especially public investment, the attraction of funds outside the State Budget plays a crucial role to supplement resources for economic development. Given its motive function, development investment is paid close attention by the Provincial Party Committee, People's Committee and Council to set out specific and appropriate steps. Concerning investment by funds outside the Budget, Ninh Binh regards investment environment improvement as the core task and has provided guidance to departments, agencies, localities to adopt some key measures as follows:

 

- Concentrate on administrative reforms, changing minds and concepts on administrative procedures. Follow the policy “Authorities to be a fellow with businesses”.

- Build up consistent planning, comprehensive infrastructure, especially in industrial zones and tourism sites. Thus, the Provincial People's Committee is preparing the mechanism for coordination, management of local planning and has issued plans for the construction of comprehensive provincial infrastructure to 2020 for agencies and departments to follow.

- Introduce mobilization policies; give incentives to business inputs such as: production premises, conditions, quick handling of administrative procedures, encourage and create conditions for investors to select investment forms.

- Foster investment promotion activities; attend investment promotional events and programmes, hold meetings with large enterprises from outside the province. As for foreign direct investment attraction only, it is necessary to expand the fields, area and forms, targeting potential markets and large corporations.