In the eyes of investors today, Phu Yen is an attractive destination with dynamic economy and open investment environment. As one of the driving forces to underpin development of the Central Region’s economic zone, Phu Yen is stepping up investment in a new direction, aiming to renew its image in the eyes of investors. Mr Nguyen Chi Hien, Director of the Department of Planning and Investment, had an exchange with Vietnam Business Forum about the measures that Phu Yen has actively taken to attract investors in the areas that the province has competitive advantages.Quang Thuan reports.
Could you please let us know your assessment on the investment environment and investment attraction results in Phu Yen since the implementation of the new Investment Law (2006)?
Since the implementation of the new Investment Law, Phu Yen has step by step amended its mechanisms and policies, encouraged investment in an open and transparent way and create a more favourable business environment for domestic and foreign investors. As a result, the province has successfully mobilized huge domestic and foreign capital sources for economic development of the province.
Specifically, from 2006 to the present, Phu Yen province has granted investment certificates to 26 FDI projects with total registered investment capital of US$ 7,850 billion, announce investment policy to 254 domestic fund-invested projects, of which 22 projects being put into operation and 131 projects being implemented with a total registered investment capital of VND 33,236 billion. Some projects with big registered capital investment include Vung Ro oil refinery project of Technostar Management Company Ltd (UK) and Telloil Petroleum Company (Russia) with the total investment capital of US$ 1.7 billion and Phu Yen high-end mixed resorts project of Vietnam New City Co., Ltd with the total investment capital of US$ 4,345.87 million.
Besides, in order to create a healthy investment environment, avoiding the situation that some incapable investors make registration procedures with an attempt to occupy land and await speculation opportunity, Phu Yen province has conducted annual review to suspend the implementation of delayed projects. The typical case is Nam Tuy Hoa Sang Tao City Project of Vietnam Galileo Investment Co., Ltd.
Creating an open investment environment, making administrative reform in the direction of simplification is considered a "channel" to attract investment. In this regard, could you please share how has it been the focus of the province over the last years?
To speed up administrative reform so as to attract investment and create the most favourable conditions for the people, businesses and investors, Phu Yen province has issued many policies on administrative reform and strengthened management and inspection. In parallel, Phu Yen Provincial People's Committee of Phu Yen has directed competent agencies to review investment procedures, make them public to concerned parties, and delegate specific responsibilities to related departments, agencies and localities. Phu Yen Provincial People’s Committee Phu Yen has issued a number of regulations and provisions related to state management of investment activities. These regulations have contributed to accelerating administrative reform in the state management agencies related to investment activities, speed up project implementation, promptly resolve difficulties facing investors and improve investment climate of the province.
Currently, Phu Yen Department of Planning and Investment is one of the three provincial units that are implementing pilot one-stop model, through which related agencies will have closer coordination in dealing with administrative procedures. The province also pays attention to gradually promoting the application of information technology to government agencies with a hope of serving people and businesses in a more convenient way.
Planning remains a concerning issue for many localities, including Phu Yen. Improper planning will cause difficulty in calling for investment. So what has been done to remove this bottleneck?
The province has always paid due attention to planning. To date, most of the master plan for socio-economic development of the province, districts, towns and cities and planning of industry and product have been prepared and approved, which serve as the ground for management agencies to grant investment certificates.
Accordingly, Tuy Hoa is the political and economic centre of the province. The north of the province include Tuy An district and Song Cau town whose planning give priory to service, tourism and aquaculture development. Currently, there are a number of large-scale projects which are in the process of making investment. The south of the province comprises Dong Hoa district and Nam Phu Yen Economic Zone with planning priority given to industrial development, especially oil refinery and petrochemical industry. The west of the province are mountainous districts whose priority is given to agriculture and forestry. There is a large number of agro-processing plants operating in the area.
In general, planning has always been given attention and has met the management requirements for provincial socio-economic development over the last years. However, planning sometimes fails to to keep up with socio-economic development. It is therefore essential to regularly conduct review and make adjustment accordingly. In the coming time, planning will be focused right from the formulation, appraisal, approval and planning management. Planning will be prepared in the direction of focus on close association with the goals, tasks and measures set out in the master plan for socio-economic development of the province to 2020.
In addition to special incentives for investors, Phu Yen also has binding mechanisms so that registered investors can implement the project effectively and bring benefits to themselves and the locality as well. So what exactly are the binding regulations and does this make investors hesitate to come to Phu Yen?
Phu Yen province has always created the most favourable conditions for investors, applying the highest preferential policies prescribed for investors which are specified in investment certificate such as incentives on corporate income tax, import and export tax, land allocation and lease. Simultaneously, Phu Yen has provided support packages to projects, especially big and important projects. For large-scale projects, in order to facilitate investors’ implementation of investment procedures and site clearance, the province has established Provincial Steering Committee and Board of Compensation and Resettlement.
Every year, Phu Yen Provincial People's Committee holds direct dialogue with businesses and investors to obtain feedback on difficulties and problems of investors. The province then directs related departments and agencies to work out solutions, enabling investors to implement the project in the most favourable way.
In addition to support and favourable conditions provided to investors, the province has worked out measures to discourage incompetent investors that complete registration procedures, but delay project implementation. Instead, opportunity will be given to dedicated and competent investors. Phu Yen Provincial People’s Committee has issued regulations on investment distribution and investment collateral. During the past time, to follow the direction of the People’s Committee, Department of Planning and Investment has cooperated with relevant departments and agencies to review the implementation of investment procedures for projects in the locality. Any detected problems will be reported to the People’s Committee for timely solution. Any delayed projects will be subject to recovery or suspension.
Phu Yen province's investment climate is getting more and more attractive to domestic and foreign investors. This is obviously illustrated by the fact that more and more investors with large financial capacity have come to Phu Yen to conduct surveys and make investment.
Thank you very much!
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