Vinh Phuc: Effective In-place Investment Promotion

 

The motto: “Investors in Vinh Phuc are as well Vinh Phuc citizens, businesses’ success is the province’s success” introduced by the Chairman of Vinh Phuc Provincial People’s Committee in various investment promotion events was the lodestar for all investment promotion activities of the province.

 

Regarding the issues such as approach and addressing problems related to in-place investment attraction for FDI enterprises, in investment promotion conferences, Vinh Phuc provincial leaders “made use” of the presence of foreign investors with successful projects in the province to share information with new investors. The three-party meetings among the authority, current investors and potential investors created an environment for direct and transparent dialogue on issues of investor’s interest.

 

Mr O-Sung Kwon, CEO of Sindoh Vina Co., Ltd, Vinh Phuc, Vietnam said: “After surveying the investment climate of the Philippines and many provinces and cities of Vietnam, Sindoh Co., Ltd., of South Korea has decided to choose Vinh Phuc province as our destination to invest the project manufacturing high-end office machineries. Vinh Phuc converge all conditions that we need: a provincial leadership which is active, friendly and supportive of investors; provincial specialized agencies enthusiastic and supportive toward investors ,etc”

 

The promotion of in-place investment, taking care of projects post-licensed has a very important role in attracting investment, especially from big businesses and corporations in the world. The promotion of investment and environment will be more effective and more substantial when taking the effectiveness of post-invest support for companies as a measure of an encouraging investment climate, a useful tool to attract investment.

 

Investment promotion conferences and agendas in foreign countries and territories were planned appropriately and in detail by Vinh Phuc authorities, containing numerous cooperation dialogue programs and memorandums of understanding signed, bringing about certain results of political nuance such as investment promotion program in Japan-South Korea, Singapore, Australia-New Zealand, Russia-Italy-Netherlands/Switzerland-Finland, UAE-South Africa-India, and the United States.

 

Mr Nguyen Tien Hanh, Director of Centre on Investment Promotion and Enterprise Support of Vinh Phuc said that letting current investors themselves speaking about the investment environment they had experienced would have a better effect than other promotion programs. In the current new stage, featured with the advent of many industrial zones, investment promotion was sure to set higher goals, however the attracting would not be as easy this time because of growing global competition as well as the recession situation. In response, dynamic investment promotion activities of Vinh Phuc would develop new forms such as proactively sending delegations abroad to conduct direct marketing or taking advantage of national investment promotion programmes.

 

It can be said that there are almost none provinces of which leaders are as usually “on the road” as Vinh Phuc. Almost every month, there are promotion delegations visiting other localities and even foreign countries. In the first nine months of 2014, Vinh Phuc Provincial People’s Committee has directed the Board of Investment Promotion and Support together with relevant departments and organizations to receive and hold working sessions with more than 50 delegations, of which more than 250 were foreign investors coming to study investment environment and opportunities in the province; some notable investors included: Japanese business delegation (led by Mr Sato Masaaki-former Chairman of People Council of Miyagi province); JJCA delegation coming to survey and implement the construction project of workshop for Japanese small and medium enterprises at the Ba Thien Industrial Zone; Korean Deahan A&C Co., Ltd. coming to study investment opportunities in the construction of ICD Dock; Korean Deaduk Company specializing in FDCB plate manufacture; Poland University and University of Arizona (the United States) to investigate and cooperate with Vinh Phuc province in training and retraining for provincial officials; University of Cambridge (the UK); TAL Group, Hup Lun Company (Hong Kong); U-One Company (South Korea)...

 

Additionally, the Board of Promotion and Investment Support also paid attention to keeping updated on difficulties and problems relating to business activities of enterprises such as investment, capital, labour, tax-customs, security, etc... as well as reviewing all recommendations and proposals from enterprises to the province. The province will speed up the administrative procedures improvement to shorten the processing time for licensing. Specifically, cases are not required by law to consult with ministries and agencies will be dealt with immediately. At the same time, the Board will conduct documents classification; simple cases will simply be resolved more quickly, about one third to half the time needed in current process.

 

Up to September 2014, there have been 14 countries and territories investing in Vinh Phuc, of which the number one is Taiwan with 38 projects of US$1,120 million registered capital, 2nd is Japan with 21 projects of US$717 million registered capital; 3rd is South Korea with 69 projects of US$592 million registered capital, followed by Singapore, Italy, Thailand... Key projects of South Korean and Japanese businesses are conveying a good impression about the province’s investment environment.

 

The increase in number of FDI projects in Vinh Phuc was a result of the fact that the province's investment environment was getting more flexible, infrastructure was being improved. In addition, the national macro economy was relatively stable allowing investors to be able to see business opportunities. Some investors were expecting massive opportunities would be brought by Vietnam signing the Trans-Pacific Strategic Economic Partnership Agreement. It’s forecasted that for the remaining months of 2014, investment attraction in Vinh Phuc would continue to flourish, especially investment from Japan and South Korea.