Thai Binh Strives to Improve Investment Environment

Though Thai Binh recorded certain achievements in 15 years of economic renovation (1986-2000), leading other provinces in developing power supply, roads, schools and dispensaries, the people were still displeased with the conditions. Thai Binh remains a poor province with agricultural production making up 56 percent of GDP and GDP growth of only 4.5 percent a year in 1996-2000 (compared to 6.7 percent nation-wide). The danger of lagging behind was clear. A solution was needed, when the main transport axis remained under construction such as Tan De Bridge, Highways 10, 39 and 39B, and investment projects were small in number and inefficient.

 

To get rid of poverty and develop faster, XVI Thai Binh Party Congress put forward objectives for 2001-2010:”Developing internal strength; increasing investment cooperation; continuing the renovation; accelerating industrialization and modernization; ensuring high and stable economic growth; developing industrial zones Tien Hai, Diem Dien and others along highways, and building big plants using local gas.”  One of the five key tasks to accelerate economic growth is: “Improving policy and mechanism to develop fully all resources and production power for economic growth.”

The province decided that besides existing advantages (land, gas and human resources), additional advantages must also be developed, first of all favourable mechanism and attractive policy.

 

In 2001-2005, the province issued 21 policies and mechanism, laying a “red carpet” to attract investment projects. With such policies, investors have benefited from low land rental and financial support in building infrastructure projects (power and water supply, and roads) connecting to their factories. In fact, many investors have received full support from local authorities.

 

From 2005 up to now, the province has issued 17 policies and mechanisms, ensuring continued favourable investment environment for the full development of local resources and advantages, with the participation of the whole society and the growth of all industries and sectors. Policies and mechanism have been constantly improved in line with the general policy and practical conditions, such as supporting households and individuals with land clearance, assisting investors in land compensation with payment accredited later in budget revenue.

 

Thai Binh encourages investments in seven areas: beverage, steel, precision mechanics, electronic parts, building materials of modern technology, power plants, and infrastructure for industrial zones.In addition, the province encourages the development of processing industries and trade.

 

To overcome the “oasis” location, Thai Binh has mobilized resources to develop its main axis, namely Tan De Bridge, highways 10 and 39A, inter-districts roads, roads to industrial zones and Diem Dien port, upgrading first roads, then power and water supply and telecommunication.

 

The province has also accelerated administrative reform with one-stop service. Decision 14/2008/QD-UBND of December 31, 2008 was issued to improve formalities on business registration, taxation and business seals. Accordingly, businesses only need to submit documents and receive permits at one office, the Department of Planning and Investment. The whole process has been reduced from 10 days to 5. In 2010, the provincial competitiveness index (PCI) of Thai Binh rose from 50th to 22nd (from Fair to Good), partly due to improved management by local authorities.

 

The province has established an Investment Promotion and Consulting Centre to assist the Department of Planning and Investment in mobilizing investments and assisting investors with formalities.

 

First, Thai Binh will accelerate the completion of policies and mechanisms to systematically attract investments. In general, the province will avoid separate policies for individual industrial zones or sectors, except in cases of special encouragement. The province will also review and amend regulations to encourage investments in certain areas in 2011-2015. Likewise, policies will be applied to ensure food security for locals whose land is converted into industrial zones.

 

The development of infrastructure for industrial zones and centres will be accelerated, first in Gia Le, Cau Nghin, Tien Hai and Song Tra. As soon as possible, the province will ensure utility services for those industrial centres, including power and water supply and telecommunication.

 

No doubt, infrastructure development will remain a key issue for the province in the years to come. Thai Binh will accelerate construction on highways 39B (Phase II, Thanh Ne – Diem Dien section), Thai Binh – Ha Nam, and 221A to Con Vanh, as well as the coastline highway and those connecting with industrial zones and centres.

The province will continue administrative reform to increase responsibility, consulting services, granting of investment licenses, as well as supervision of investment activities. Strict consideration will be applied to big projects using more land, causing environmental pollution, or consuming more mineral resources and energy. Projects with delayed implementation will be treated appropriately, or even have their license cancelled.

 

In addition to land clearance, the province will assist in training human resources to meet investor’s demand.

 

In its efforts to improve the business and investment environment, Thai Binh wishes to receive greater cooperation from the central government, other provinces and business communities at home and abroad.