4:06:49 PM | 1/8/2012
On May 25, 2009, the Politburo issued Conclusion 48 – KL/TW on building and developing Thua Thien Hue Province and Hue City by 2020, aiming to turn “Thua Thien-Hue into a national, regional and international-graded urban area.”
The 2010 – 2015 period will be the time for people in Hue City to focus on economic development and infrastructure upgrades toward the target of the city coming directly under the central government.
To fulfil the goals, Thua Thien-Hue Province must be more dynamic to tap the potential of a land featuring cultural and historical relics. Local people are also a bit quiet and very thoughtful. The province’s economic development must ensure traditional cultural value preservation.
Thua Thien-Hue Province has become more flexible, opening more opportunities for investors. The locality has offered favourable tax policies for investors at its industrial parks and export processing zones such as corporate income tax of just 10 per cent within 15 years since a company started their operation in the province. Enterprises are also exempted from corporate income tax for four years since they have taxable income. Investors will be offered the whole fee assistance for resettlement and the entire extra resettlement fees for projects at the mountainous districts of Nam Dong and A Luoi, meanwhile, the rate of 50 percent is in the Huong Tra, Phong Dien, Quang Dien, Phu Vang and Phu Loc districts.
Besides investment incentives, the province has also concentrated on administrative reform. Thua Thien-Hue remains a relatively new destination for investors, particularly those in manufacturing and industrial areas. The local land fund is suitable for industrial park expansion and large-scale industrial and manufacturing factories. Other advantages include National Highway 1A, Chan May deep-water seaport and particularly the province is located on East West Economic Corridor. This is a very good condition for strengthening trade exchange activities and promotion image.
Japanese businesses pay a special attention to Thua Thien-Hue and many of them have caught chances to carry out their projects in the province. In 2011, the province licensed additional 28 locally-invested projects with a total capital of VND1.04 trillion and eight foreign direct investment (FDI) projects valued at USD60 million in total. In the year, the provice approved the capital rise of three existing FDI projects, bringing in an additional USD10 million. To date, Thua Thien-Hue has attracted a total registered FDI of USD1.9 billion. Bright opportunities have opened for firms doing business in Thua Thien-Hue.
Opportunities for supporting industry
Currently, the province is home to 15 garment and textile enterprises. Up to 80 percent of these exports their products to foreign countries, obtaining an annual value of nearly USD225 million. Thua Thien-Hue is among leading garment and textile centre of the central coastal region. The garment and textile development has laid a foundation for its supporting industry.
Garment and textile materials and spare parts are mostly imported from foreign countries for other provinces in Vietnam. Ho Van Dien, Deputy Director of the Hue Textile Garment Joint Stock Company, said, “The garment and textile sector needs the development of materials and spare parts to provide it with equipment and machines”. To affirm its position of being a garment and textile hub of the central region, Thua Thien-Hue also needs the establishment of development of dyeing and design in the near future.
Speaking with us, Nguyen Huu Tuan, Head of the provincial management board of industrial parks said, “This year, we will focus on investment promotion, prioritising manufacturing projects in the supporting industries for garment and textile factories”.
Currently, Phu Bai and Phong Dien are home to major garment and textile projects. The province is speeding up site clearance at these parks to welcome investors. Coming to Thua Thien-Hue, enterprises will have a very chance, particularly in the garment and textile supporting industries. More importantly, investing in the supporting industries, including those serving garment and textile factories, businesses can join local industrial complex connection where they can supply products for another in a production network.