In recent years, by effectively applying measures to improve the investment environment, actively dealing with problems and mobilising all available resources, Hoa Binh province has markedly improved its investment climate. This was illustrated by its remarkable increase on the provincial competitiveness index (PCI), to 47th out of 63 provinces and cities in 2011, 13 places higher than in 2010. In spite of numerous difficulties in 2012 owing to economic downturn, Hoa Binh province attracted some foreign-invested projects. To learn more about this, Vietnam Business Forum has an interview with Mr Bui Hai Quang, Director of the Department of Planning and Investment of Hoa Binh province. Nguyen Hanh reports.
The enlarged administrative boundary of Hanoi has opened up new opportunities for Hoa Binh province to attract investment. So, what directions and solutions has the provincial government adopted to maximise its potentials and advantages?
Hoa Binh, which is adjacent to Hanoi, lies in the capital planning area. Four communes in Luong Son district were annexed by the capital city. Seeing this advantage, Hoa Binh province has carried out a number of solutions and directions in order to effectively exploit local potentials and advantages. Specifically:
Promoting the popularity and image of the local investment climate, promoting domestic and foreign investment.
Accelerating administrative reform, applying the single-window mechanism for investment-related activities; issuing Decision 03/2008/QD-UBND of the Provincial People’s Committee dated September 20, 2008 on regulations on administrative procedures, supports and incentives for investment projects in the province; issuing a directive on enhanced investment attraction.
Reviewing, adjusting and timely supplementing the socioeconomic development master plan, sector planning, urban planning, etc., and proposing that the Prime Minister add eight industrial parks in the to the national industrial park development planning.
Building Hoa Lac - Hoa Binh Highway to shorten the distance from Hoa Binh province to Hanoi.
In 2012, Hoa Binh province licensed 43 projects, including four foreign direct investment (FDI) projects with a combined registered capital of US$175 million and VND2,230 billion (over US$100 million), equal to only 75 per cent of projects and 57 per cent of the total registered capital in 2011. As the head of investment attraction advisory agency to the Provincial People’s Committee, what is your assessment of these figures?
The global financial crisis and global economic downturn had a negative impact on the country's economic situation. For its part, Hoa Binh province was faced with numerous difficulties and challenges in carrying out socioeconomic development tasks, including investment attraction. In 2012, Hoa Binh province had 240 company establishments with a total registered capital of VND1,000 billion, down 31 per cent (or 108 enterprises) from 2011. The province licensed 43 projects, including four foreign direct investment (FDI) projects with a combined registered capital of US$175 million and VND2,230 billion (over US$100 million), equal to only 75 per cent of projects and 57 per cent of the total registered capital in 2011. Thus, both projects and investment capital decreased in 2012 over 2011. However, these figures do not reflect a declining quality of local investment climate. Rather, in the context of current difficult economy, these figures reflected the effort, determination and resolution of the province to improve the investment environment.
How do you assess the development and health of enterprises in Hoa Binh province in the current period? Since taking good care of businesses and projects is considered the best method to invite investors and promote investment, how has the Department advised the Provincial People’s Committee to do this job well?
Despite confronting plenty of difficulties, enterprises have made increasingly positive contributions to provincial social and economic development. In 2012, they paid over VND1,200 billion to the State Budget, created jobs for about 62,000 workers with relatively stable individual incomes of about VND3 million a month, earned US$72.7 million from exports and spent US$40.6 million on imports.
Caring well for businesses and projects is always the ultimate, continuous goal and solution. The “caring" is expressed by increased regular contact and information exchange, working assignments for agencies to contact and work with investors and enterprises to provide support and solutions for them to overcome difficulties and problems, and drastic administrative procedure reform to quicken the operational startup of investment projects.
In 2008, the department advised the Provincial People's Committee to decide on the establishment of an interdisciplinary inspection team to perform examinations on the implementation of investment projects in the province (Under Directive 15/CT-UBND of Hoa Binh Provincial People’s Committee dated December 19, 2008).
In 2010, the department consulted the Provincial People's Committee to organise a successful conference between provincial leaders, investors and businesses, and advised the committee to form and lead two panels to inspect socioeconomic development task implementation performed by districts, Hoa Binh City and some investment projects in the province.
In 2012, the department counselled the Provincial People's Committee to approve the plan to establish a working group responsible for assisting enterprises and investors to deal with difficulties in production and business in the province in order to effectively implement the Government’s Resolution 13/NQ-CP dated May 10, 2012.
Facing increasingly urgent requirements for economic restructuring, investment attraction and PCI ranking improvement, what orientations and solutions will Hoa Binh province take to promote investment attraction and sustainable development in the coming years?
To promote investment attraction and sustainable development and create an attractive investment environment, Hoa Binh province will focus on attracting capital from the non-State sources, give priority to attracting investment capital for high tech, supporting industries and tourism services with the following solutions:
One, enhancing reform and publicity of administrative procedures for investment projects.
Two, boosting information on investment activities via domestic and international mass media.
Three, analysing the reality and proposing solutions and criteria for each unit to improve the local investment climate, attached to provincial competitiveness index (PCI) assessment criteria.
Four, strengthening dialogues between government agencies at all levels and enterprises in order to seek out effective measures to solve complex issues related to the production and business environment.
Five, carrying out good planning activities, mobilising all resources for infrastructure system development, especially transportation, power, communications, water supply, drainage and environmental pollution treatment systems; focusing investment on key projects to improve the quality of infrastructure.
Six, implementing the Government’s Resolution 13/NQ-CP dated May 10, 2012 and the National Assembly’s Resolution 29/2012/QH13 on a number of measures to remove production and business difficulties, tax and market support.
Seven, promoting socialisation of training activities, improving the quality of human resources, especially civil servants; strengthening information and communication on State policies on planning and operational planning processes of state agencies.
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