Long An Province Ready for More Investments

11:16:16 AM | 15/7/2009

In 2009, FDI might not attain the target of some US$800 million, however Long An has had more projects and higher disbursement than 2008, said Mr Mai Van Nhieu, Director of Long An Planning and Investment Department in an interview with a Vietnam Business Forum reporter.
 
In 2007, over 750 business licenses were granted (33 percent more that of 2006) with investment capital of VND12,000 billion (10 times that of 2006) and over 70 new projects with investment capital of over US$1.2 billion were started.
 
In 2008, in spite of difficulties, domestic and foreign investments remained high. Domestic investment worth VND25,827 billion (718 enterprises), was two times that of 2007, including 68 new projects (70 projects in 2007) with registered capital of US$528 million or 65 percent of 2007, and 11 projects increased capital worth of US$40 million. By the end of 2009, 287 projects have been licensed with a registered capital of US$2,500 million, including 117 projects already under operation with implemented capital of US$1,026 million.
 
The investment environment of the province has improved. PCI has increased from 21st to 6th position after VCCI's tough evaluation. Investment promotion has been intensified with good results at home and abroad (the US, South Korea and Japan), which has led to investments in 12 projects of infrastructure, environment and industrial zones and has attracted potential investors. The province has signed investment MOUs with Viettel on projects in the province, with Korean investors on water supply and waste treatment, with Japanese investors on health service and the master plan of socio-economic development.
 
The project implementation seems slow, what is the solution?
By the end of May 2009, 118 out of 278 projects (42.4 percent) have been put into operation and US$1,147 million out of US$2,665 million (43 percent) has been disbursed. The slow implementation is mainly due to projects outside industrial zones and due to difficulty in land clearance and weak capacity of investors. To overcome it, the province has issued Decision 28/2008/QD-UBND, effective on August 8, 2009, on compensation, assistance, resettlement, vocational training and employment. Furthermore, the Department of Natural Resources and Environment has recommended improving the Decision and the province applies measures to prevent abuse and to verify financial capacity of investors. The province has also provided over 6,000 hectares for infrastructure investors to attract direct investments. It also helps improve the shortage of land.
 
How could you improve the investment environment in coming years?
Long An has decided to improve the investment environment by implementing five measures:
First, accelerating the administrative reform, reorganizing mechanism especially focusing on the human factor, reducing one third to one fifth the time for granting licenses for businesses, investment, construction and land rent, saving both time and money for businesses.
 
Second, getting ready for business opportunities when local and world economies have recovered, especially in terms of human resources and infrastructure.
 
Third, attracting potential investors through concrete projects and programmes including major projects in infrastructure, industries involving more capital and high added value.
 
Fourth, investment promotion programme 2009 will be in three forms: trade and investment promotion activities at home and abroad for specific target groups; participation in investment promotion activities organized by the Ministry of Planning and Investment; participation in investment and trade fairs organized in the Mekong Delta and Southern key economic region. We will select potential investors and directly approach big economic groups and strategic partners.
 
Fifth, increasing support to businesses, trade and export promotion and market expansion, assisting businesses before, during and after investing abroad and export. The province has already issued list of projects of encouragement export and investment in foreign countries in the framework of the province and WTO commitments.
 
At the same time, we always go side by side with businesses and solve their problems.     
Reported by Trung Dung