2:45:27 PM | 30/12/2014
With an export turnover of over US$23 billion, an industrial production value of US$598 trillion (US$29 billion), and an investment capital of nearly US$1.6 billion in 2013, Bac Ninh is asserting its position of being a dynamic, modern industrial province. Effective investment projects are speeding up the province’s economic restructuring, aimed to become a modern industrial province in 2015.
According to reports by the Government and by Bac Ninh province, global financial crisis and economic downturn caused adverse impacts on Vietnam in 2013. But, with the effective direction and administration of the Provincial People's Committee, the timely deployment and implementation of consistent measures to social and economic development, with many mechanisms and policies to support the province's social and economic situation in 2013, continued to produce many good results in all areas, with most targets achieving and exceeding expectations.
In 2013, the gross regional domestic product (GRDP) growth was estimated at 11.8 percent and GRDP per capita was VND68.2 million (US$3,243). The economy was further modernised and industrialised. Industry and construction sectors made up 74.5 percent of GRDP, service sector accounted for 19.5 percent, and agriculture, forestry and fisheries sectors contributed 6 percent. The industrial production value was estimated VND598.77 trillion in 2013, up 60.7 percent over 2012. The service sector has maintained growth, with exports leaping to over US$23 billion, up 68 percent over 2012. The growth quality was shown in the total development investment capital of VND36,303 billion (US$1.8 billion), up 11.5 percent against 2012, and State budget revenue of VND11,533 billion (US$0.55 billion ), up 22.1 percent against 2012.
Particularly, the foreign investment promotion has been accelerated. In 2013, although many businesses across the country struggled with hardships, even closures, Bac Ninh province had more than 2,000 new companies, bringing companies in the province to 6,366 with a total registered investment capital of VND100,009 billion. Bac Ninh is still an attractive destination for domestic and foreign investors. It ranked fifth in investment capital (after Thai Nguyen, Thanh Hoa, Binh Thuan and Hai Phong) and third in projects (after Ho Chi Minh City and Thanh Hoa) with nearly 100 new projects, of which 90 percent are FDI projects with a total investment capital of US$1.48 billion. To date, the province had 459 valid FDI projects with a total registered capital of nearly US$6 billion and 719 domestic investment projects valued at VND78,938 billion. Most big projects have gone into operation including Fujikin Vietnam Co., Ltd, Vinasoy Soymilk Factory, Samsung Electronics Vietnam Co., Ltd, Cannon Company, and Konishi Company. Investment projects employed more than 144,000 workers (an increase of 28,000 workers from a year earlier). These are really very impressive figures, especially given the current economy. Notably, in the first six months of 2013, Samsung Electronics Vietnam Co., Ltd added US$1 billion for its third-phase investment, bringing its total investment in the province to US$2.5 billion and building its largest production base in the world (located in Yen Phong Industrial Park). And, the official operation of Nokia mobile phone plant in VSIP Bac Ninh Industrial Park in October 2013 confirmed the attractiveness and ripple effect of Bac Ninh industrial parks in foreign investment attraction. With the presence of the world’s mobile communications groups like Samsung and Nokia, Bac Ninh and Vietnam are made present on global mobile technological map.
The above results come from the support of the Party, the National Assembly, the Government and central agencies; the effort of the province and the business community. In public administration reform, investment authorities like the Department of Planning and Investment and the Industrial Zones Authority always follow regulatory procedures to reduce the time required for investors. Besides, functional departments of the province actively detect and resolve difficulties in employment, environment, land and others for investors. In order to attract new foreign investors and effectively manage existing FDI projects, Bac Ninh always prepares the production space by completing development planning and building infrastructure industrial parks. The province gives priority to clean-tech, high-tech, environment-friendly projects and investment in the form of BOT (build - operate - transfer) and BT (build - transfer). By accelerating infrastructure investment for businesses, Bac Ninh province is committed to reforming and streamlining administrative procedures for investors, and turning down projects consuming excessive energy and natural resources or using outdated, environment-polluting technologies. The province always focuses on intensifying the management, promotion and attraction of investment capital into industrial zones via various channels. Especially, the province concentrates on attracting investment projects with modern technologies and financial capacities. As a result, the province has drawn good domestic and foreign projects.
Accordingly, in the following years, Bac Ninh will continue to issue policies and mechanisms on investment support and encouragement like developing supporting industries and developing small and medium enterprises (SMEs). The province will continue to invest in industrial zones and ensure synchronous development of transport, power, water supply and telecommunication systems and worker accommodation.
The province also focuses on improving the investment climate, reforming administrative procedures, improving the provincial competitiveness index (PCI) and international economic integration index, and maintaining the Top 10 ranking in PCI. At the same time, the province needs to strengthen and improve the quality of investment promotion activities and business connectivity and enhancing the quality of investment procedures.
With investment attraction results in recent years, Bac Ninh will focus on enhancing the quality and efficiency of investment environment, based on international standards. The targets are projects with good technologies, commitments to worker pay, budget contributions and expertise development.
Bac Ninh province will give priority to investment in modern, high-tech, clean tech, environment-friendly and non-polluting industries, create added value for key projects, and use resources economically and efficiently towards sustainable development. The target industries are information technology, electronics, microelectronics, biotechnology, tourism, health, education - training and entertainment services. The province will attract projects with research and development (R&D) and technology transfer towards environmental protection and sustainable development, and encourage investment into supporting industries to reduce input costs to raise product competitiveness.