4:07:12 PM | 2/7/2015
In 2014, Thai Nguyen province led the country in the value of FDI attracted, with US$3.2 billion in 22 new projects. Besides, the province also allowed nine existing FDI projects to raise their registered capital base, bringing the total value (new and added capital) to US$3.35 billion in the year. This impressive result in the face of economic difficulty illustrated the province’s efforts for accelerated public administration reform, focused infrastructure construction, and strengthened trade promotion. The province has defined that attracting FDI, especially into industrial zones, is a top priority.
In recent years, a lot of foreign investors have chosen Thai Nguyen to locate their projects. In addition to South Korea’s Samsung Group, Thai Nguyen has drawn many other investors from Japan, South Korea, Taiwan, Germany and other countries. They are interested in electronics components, supporting industries, mining, mineral processing, construction and real estate.
Thai Nguyen province has paid special attention to raising the provincial competitiveness index (PCI). In 2011, its PCI ranked 57th out of 63 countries and territories. In seeing this poor result, the Thai Nguyen Provincial Party Committee issued Directive 19 to mobilise the entire political system to strive for a better result. In 2012, its PCI jumped 40 places to 17th position and in 2014 the index secured the eighth position with 61.25 points, 1.18 points higher than 2013 and 2.56 points higher than in 2013. The index ranked second in the northern mountainous region.
Besides, Thai Nguyen has diversified its investment promotion activities, introduced its investment projects to foreign investors, organised investment promotion conferences in Vietnam and foreign nations. Provincial leaders have also regularly hosted meetings and contacts with investors seeking investment opportunities in the province. Thai Nguyen successfully organised the international seminar entitled "Assessing reality and solutions to FDI attraction into Thai Nguyen province”.
The Department of Planning and Investment has advised businesses and investors on preferential investment policies when they do business in the province, provided information and expenses for special articles on central and local mass media; and compiled documents and publications on efficient investment.
However, Thai Nguyen has still some limitations and shortcomings in FDI attraction. Firstly, due to economic crisis, the government has restricted public investment for technical infrastructure construction. The province lacks clean land fund; therefore, businesses and investors find it hard to seek land for their projects. Difficult access to capital and collateral shortage have also hindered production and business operations. Human resource quality is not as high as investors' requirements. To overcome these weaknesses, the Department of Planning and Investment issued many effective investment promotion plans and policies.
In the coming time, the province will attract FDI capital to build infrastructure in industrial parks. Thai Nguyen will give priority to electronic component production, digital equipment assembly, software park construction, and supporting industries. Together, Thai Nguyen is gradually building highway systems, accelerating site clearance and land compensation, reforming service manner of officials, civil servants and employees. With its dynamic, creative, open and friendly provincial leaders, Thai Nguyen is holding its position as a leading light in FDI attraction in the country.
Nguyet Tham
Vietnamese
