Investment into IZs Exceeds Target

Despite the global economic downturn and tight monetary policies in many countries, Vinh Phuc province has witnessed a strong increase in investment inflows into its industrial zones (IZs) in the year to date. The growth of both FDI and DDI funds demonstrates Vinh Phuc’s attractiveness and competitiveness for domestic and foreign investors.

Vinh Phuc province’s investment promotion delegation meets with Google Company

From January to September 15, 2023, FDI projects registered to invest nearly US$6.27 billion and DDI projects registered to invest nearly VND32,500 billion in Vinh Phuc’s industrial zones. Specifically, 29 new projects and 35 existing projects contributed to this total investment capital. The province granted licenses to 19 new FDI projects and 31 existing FDI projects with a total investment of US$467.87 million, a 71% increase year on year and 34% higher than the target for 2023. Vinh Phuc also approved 10 new DDI projects and four existing DDI projects with a total investment of VND5,881.3 billion, a 169% increase year on year and 96% higher than the full-year target. As of now, the province’s industrial zones host 468 valid investment projects, including 107 DDI projects with VND32,454 billion and 361 FDI projects with US$6.27 billion.

To better support businesses, Vinh Phuc Provincial People’s Committee assigned specific tasks to each agency, sector and locality to improve their respective indicators of the Provincial Competitiveness Index (PCI); and instructed the Assistant Board to the Chairman of the Provincial People’s Committee to receive, guide and assist businesses in resolving their difficulties and suggestions. The committee organized conferences to find solutions for the challenges faced by local enterprises, mobilize resources for economic development, accelerate land compensation and site clearance, and prepare infrastructure conditions for industrial zones. In particular, the province successfully conducted investment promotion trips to the United States and Italy where it had several meetings with businesses, investment funds and trade promotion organizations such as Gibson, Dunn & Crutcher Law Firm, the New York Stock Exchange, and Google.

Recognizing that supporting enterprises to overcome difficulties and enhancing investment promotion and attraction are key tasks, Vinh Phuc Industrial Zones Management Board has earnestly implemented administrative procedure reforms, especially simplifying and facilitating labor formalities. Moreover, the board has proactively approached and invited large corporations and projects that are compatible with the master plan and sectoral plans into industrial zones and guided investors to visit industrial zones, survey locations and complete investment procedures. For instance, KCI Co., Ltd of South Korea studied investment procedures at Thang Long Vinh Phuc Industrial Zone. Anh Quang Co., Ltd explored investment procedures in Ba Thien II Industrial Zone. Liftec Group of South Korea learned about Phuc Yen Industrial Zone.

Indeed, the rising investment flows into local industrial zones reflect the confidence of domestic and foreign investors in Vinh Phuc as a safe and appealing destination. This is also evidence of the dynamism, determination and closeness of the entire political system, all-levels of authorities, as well as its consistency with the goal of attracting strategic investors and large-scale projects with modern technology, high added value and positive contributions to local socioeconomic development.

Tran Trang, Vietnam Business Forum