Ninh Thuan Ready to Give Highest Incentives for Investors

2:56:04 PM | 24/2/2014

In recent years, with strong determination to reform the investment environment, Ninh Thuan has implemented the "one-stop shop” mechanism in the field of investment and business registration, actively reviewed and removed obstacles obstructing investment procedure, which has created a new wave of investment attraction in Ninh Thuan province. Mr Pham Dong, Director of the Department of Planning and Investment of Ninh Thuan, said: "One of the important issues in the development strategy of the province in the upcoming time is to focus on improving the investment environment, building the provincial investment capacity for maximum mobilization of resources for investment development. The province’s leaders are determined to make Ninh Thuan a trusted and attractive destination for investors”. Hoang Lam – Cong Luan report.
In recent years, Ninh Thuan has attracted many domestic and foreign investment projects of huge importance. Can you share more about this success, particularly in the period 2011 - 2013?
So far, in the province, there have been 210 projects given Investment Certificate by the provincial people’s committee with a total registered capital of VND45,696.4 billion (of which 24 are FDI projects with the total capital VND12,823.4 billion) and 46 projects approved with investment locations with a total registered capital of VND52,489.7 billion (of which 4 are FDI projects with a total capital of VND33,300 billion).
In the period 2011 - 2013, thanks to the successful organization of the conference announcing plans to develop socio- economy of the province towards 2020 in combination with investment promotion in the end of 2011 along with the promotion of administration reform under the "one stop shop" mechanism model through the Economic Development Office (EDO) of Ninh Thuan, investment situation in the province has made remarkable changes. Particularly, the number of projects given Investment Certificate and the scale of registered capital of this period accounted for nearly 50 percent of valid projects. Specifically, the Provincial People’s Committee has issued Investment Certificate for 96 new projects with the total registered capital of VND22,583.1 billion (of which 6 are FDI projects with the total capital of VND7,154 billion) and approved sites for 41 projects with the total registered capital of VND48,044.2 billion (of which four are FDI projects with the total registered capital of VND33,300 billion).
Investment sectors have become more diverse. In addition to areas such as marine tourism, aquaculture and granite processing, wind power potential also attracts many investors.
It is known that to attract investors in the country and abroad, Ninh Thuan has a policy of giving the highest incentives for investors in the framework of the government’s regulations. At the same time it will give highest support for investors when they implement projects in the area. So what are these incentives and support, specifically?
Ninh Thuan locates in the area receiving investment encouragement with the highest investment incentives. At the same time the province has the policy on giving the highest incentives in the framework of the government’s regulations and takes full use of the highest support for investors when implementing projects in the province. Accordingly, investors will be entitled to the exemption or reduction of land rents, business income tax and import tax.
Specifically, investors are exempted from land rent for projects in the field of education, health, fitness, sports, environment, BOT projects, projects in special fields encouraged to invest in the districts of the province. Also land rents are exempted for 11 years for projects investing in the districts. Land rent of projects in the fields of investment incentives are exempted for 15 years from the date of allocation. Investment projects in all districts are subject to the highest preferential corporate income tax rate of 10 percent in 15 years from the first year making benefit. They are exempted from tax for 4 years after making taxable income and this figure decreses to 50 percent in the next 9 years.
The province will support nvestment projects into Ninh Thuan from the beginning of implementation of the investment process to the final stages. The province will also applies parallel processes in the implementation of investment procedures and minimizes the time of procedures to implement the project as quickly as possible through the operating of the Economic Development Office (EDO) model.
Attracting investment into the renewable energy sector, tourism, manufacturing industry, particularly the supporting industry serving the construction of two nuclear power plants, etc., is the focus that the province is. What catalyst do you think the province need to increase investment efficiency?
Ninh Thuan is currently facing new development opportunities when the National Assembly is having policy on the construction of the two first nuclear power plants of Vietnam in Ninh Thuan. Besides, the government is implementing a number of projects of national importance, promoting the increase of connectivity among the development of Ninh Thuan province, provinces in central coastal region and key provinces in the south such as: upgrading the Ho Chi Minh - Nha Trang route, Highway 1A; upgrading Ba Ngoi cargo port and constructing the coastal road 116 kilometers in length. The completion of such projects will create motivation and new opportunities for the development of the province in the future and open up new opportunities to attract investment in the province, significantly in the fields of energy, tourism, manufacturing industry, particularly supporting industries serving the construction of the two nuclear power plants.
To increase the attractiveness and effectiveness in attracting investment, currently the Department of Planning and Investment is finalizing the draft submitted to the Provincial People’s Committee issuing preferential policies to support investment in the province regulating specific policies on the reduction of land rent, land clearance compensation, investment in infrastructure projects to the fence of projects in the field of investment incentives. Also the province will assist workforce training while advising the Provincial People’s Committee propose the Government to create some special mechanism to Ninh Thuan province regarding the construction of the two nuclear power plants, including the proposal of special preferential policies to promote investment in the province.
Projects in the field of clean energy typically has large investment capital, long payback period, thus the rate of investor participating is very low. What guidelines and policies does the province have to increase this figure?
In recent years, despite the difficult economic context, Ninh Thuan continues to attract more investors in the country and abroad to explore investment opportunities, particularly in areas of the province’s strength such as wind energy. The Provincial People’s Committee has issued Investment Certificate for 7 projects with the total registered capital of VND21,124 billion and approved sites for 10 projects with the total capacity of 901 MW. The number of projects attracted and issued investment certificate is relatively high, but the project implementation rate is low, most of the existing projects are in the stage of wind measurement and procedure completion to implement.
Wind power projects require large capital investment. In the difficult economic context, investor’s finance arrangement is facing many difficulties, especially under the context that power purchase price under the current regulations remains low and hasn’t encouraged rapid project deployment.
To support wind power projects, the Department of Planning and Investment advised the Provincial People’s Committee submit paper to the Ministry of Industry and Trade proposing that the Government soon buy wind power in reasonable price to create conditions for investors to accelerate the development of wind power projects. At the same time the province has preferential policies of the highest incentives for wind power projects such as free land rent, clearance compensation support, duty-free import of equipment and the application of the highest preferential tax exemption or reduction of corporate income in the regulatory framework of Government to create the most favorable conditions to accelerate the deployment of wind power projects in the coming time.
Particularly mentioning administrative reform, how is a dynamic authority with open and flexible mechanism facilitating investment to accelerate economic development focused on in recent years as well as towards implementation in the next time?
In recent years, administrative reform has been of particular interest of the province, particularly the establishment and putting into operation of the Office for Economic Development on the basis of the idea of the Monitor Consulting (the U.S.) and the Economic Development Board (EDB) of Singapore. It can be said that EDO’s activities over the time have created a breakthrough in administrative reforms (administrative procedure time is shortened compared to the past; a number of procedures such as business registration, seal or tax registration are settled within three working days, etc.). This is highly appreciated by the business community and investors.
With the goal of creating the most favorable conditions for investors to implement investment projects in Ninh Thuan, in 2012, the Department of Planning and Investment advised that the Provincial People's Committee issue Decision 29/2012/QD-UBND dated 26th June 2012 (in replacement of Decision 290/2010/QD-UBND) which allows investors to get the procedure done in parallel, getting the procedures related to investors received and processed under the "one stop shop" mechanism at EDO.
Promoting administrative procedure reform in EDO has created a remarkable change in investment attraction, contributing to enhancing the PCI index of the province from the position of 48/63 (2009) to 18/63 (2012). Many provinces and cities have come to study and learn new models of the province.
To attract investment resources for development, in the upcoming time, Ninh Thuan province will continue to improve even more strongly investment and business environment with the focus is to improve the performance of EDO and effective implementation the scheme on enhancing provincial competitiveness index, bringing Ninh Thuan province to the top provinces with high competitiveness index to generate open investment and business environment to best exploit internal resources and attract maximum foreign investment for the development and construction of Ninh Thuan, making it a trusted and attractive destination in the eyes of investors.