Solutions to Attract Investment into IPs in Gia Lai Province

2:49:42 PM | 16/11/2009

Gia Lai is currently home to only one industrial park – Tra Da IP. The IP has been basically fulfilled. In order to meet investment requirements, Gia Lai province is implementing a project to expand Tra Da IP (88 hectares) and Western Pleiku IP project (500 hectares).
Tra Da IP is the first IP in Gia Lai with a verified area of over one million square metres. Currently, Tra Da IP has got its infrastructure system invested in, and is able to meet requirements of investors. As of September 2009, the IP has attracted 31 projects with a registered capital totaling VND783,347 million. Twenty-five projects have already started operating, five projects are in the construction process and one project is in the process of conducting investment procedures. Among investment projects in the IP, two are 100% foreign invested. Granite producing and processing makes up a large proportion with nine projects (29 %); agricultural product processing, five projects; coffee production for export, three projects; packet production, two projects; refined wood production for domestic consumption and export, two projects; paper production, two projects and two projects of producing mineral materials and spare parts for agriculture and forestry machines.
With 95 % of the area being fulfilled, Tra Da IP is being assessed to be a “bright point” in attracting investment into Gia Lai’s IPs. However, one weakness exists. Almost all investment projects into the IP are SME with limited production technology. Due to limited scale, industrial production value is modest. As of September 2009, industrial production value reached VND519.340 billion; total turnover, VND564.595 billion and VND4.734 billion gets paid to state budget.
Identifying that attracting investment into IPs within the provincial area is an important objective to accelerate socio-economic development of the province, Gia Lai has made lots of effort in attracting and calling for investment during the past years.
In order to call for and attract investment into IPs in the province, in 2007, Gia Lai promulgated Decision No. 84/2007/QD-UBND which provides regulations on preferential treatment to and support for investments made in the province. Recently, on 17 April 2009, Gia Lai Provincial People’s Committee issued Decision 12/2009/QD-UBND, approving the project to conduct “inter-office one-stop shop” mechanism in granting investment certificate, business registration certificate and tax registration certificate, etc. for enterprises making investment into IPs in the province in order to minimize time and cost taken to conduct administrative procedures for investors.
Gia Lai provincial people’s committee is also directing related branches and sectors to review the province’s mechanism and policies, make proposal to add new policies to already existing investment policies of the province, etc. to submit to the people’s committee. Then the people’s committee will consider and submit it to the Government so that it can issue favourable policies to attract investment for the Central Highlands, in general and Gia Lai, in particular.
In addition to making a transparent and favourable mechanism and policies for investors, Gia Lai province is boosting propagandizing and advertising about Gia Lai, its favourable conditions, potentials and strength with an aim to attract investment.  
Quoc Hung