Thua Thien Hue: New Features in Investment Attraction

10:56:28 PM | 2/11/2015

Thua Thien Hue province has attracted 169 investment projects with a total registered capital of VND31 trillion (US$1.5 billion) from 2011 to 2015. Specifically, the province licensed 39 FDI projects with US$491 million. In the first seven months of 2015, the province granted investment certificates to five new projects with a total registered capital of US$77.075 million. In the first six months of 2015, Thua Thien Hue led the Central Coast and Central Highlands in FDI attraction. To learn more about investment attraction in Thua Thien Hue province in the past period and in subsequent years, Vietnam Business Forum Magazine has an interview with Mr Nguyen Van Phuong, Director of the Department of Planning and Investment. Tran Ngoc reports.
Would you be kind enough to briefly introduce new ways of Thua Thien Hue province to attract investment capital in 2011-2015, especially in 2015?
Difficulties and challenges were greater than forecast in the 2011 - 2015 period. Against that backdrop, despite ongoing efforts, investment value in Thua Thien Hue province declined. Fortunately, during this tough time, many new characteristics in investment attraction began to take shape and lay the foundation for subsequent years. Some typical projects included Hue - Bangkok flight route, Hue - Da Lat flight route, Terminal No. 1 upgrading project - Chan May Port (to receive world’s largest cruise ships of Royal Caribbean Cruises Company), Terminal No. 3 construction project - Chan May Port, National Road 1A upgrading project, Phu Gia and Phuoc Tuong tunnel construction project, Phong Dien - Viglacera Industrial Zone.
Some tourism and trade projects included a five-star trade and hotel complex project invested by Vingroup and Lang Co International Resort. Industrial investment projects comprised a US$75-million aluminium beer can production project invested by Baosteel Group. Particularly, Hue City exerted a strong pull on Thailand companies like Bangchak and Banpu.
To have this result, investment attraction and support have also been changed. The province has directed relevant bodies to build database, analyse comparative advantages, and work out development orientations for specific sectors, markets and objects. Thua Thien Hue province has organised focused investment promotion programmes targeting at specific investors. To support investors to study investment opportunities and fulfil investment procedures, the province set up a joint working group joined by investment officials and specialists to support every request of investors in the form of direct contact. The province has applied information technology to exchange emerging issues and reduce paperwork among State agencies to short the waiting time for investors. Hence, investors quickly have necessary information when they study investment opportunities, easily prepare investment procedures and considerably reduce the settlement time of investment procedures. Seeing that FDI plays an important role in creating groundbreaking economic development, the province has focused on connecting some new international flight routes like Bangkok - Hue and sees this as an important factor for the province to approach and attract FDI.
According to FDI attraction plan and orientation of Thua Thien Hue province in the 2015-2020 period, the province will attract an average of US$500-800 million year. What will the province need to do to achieve this goal and boost up investment inflows?
Currently, 21 countries and territories in the world have invested in projects in Thua Thien Hue province, including the United States, France, Japan, Singapore, Thailand and Hong Kong. Singapore is the biggest foreign investor with US$875 million of registered capital, followed by Hong Kong with US$00 million, which was followed by Thailand, Denmark and the United States.
In the context of deeper international integration and recovering domestic economy, Thua Thien Hue province sees that this is a great opportunity to accelerate investment attraction to create socioeconomic development leaps. FDI capital will play a key role in this process. To realise this target of drawing an average of US$500-800 million a year, in my opinion, the province needs to promote its investment attraction results achieved in the 2011 - 2015 phase. In the upcoming time, the province will focus on supporting big investment projects like Tan Canh Duong Resort (VND11 trillion), Loc Binh Resort (VND4,500 billion), Bach Ma Resort (VND3 trillion), Thuy Van Residence (VND1,500 billion), An Van Duong Entertainment Services Complex(VND1 trillion), solar and wind power plants (VND25,000 - 50 trillion) and sand processing plant (VND1 trillion). At the same time, the province will review and speed up infrastructure investment in Chan May - Lang Co Economic Zone, industrial parks, Bach Ma National Park, coastal areas, and lagoons.
To become an attractive destination for investors, the province will focus some key measures below:
First, improving the open and attractive environment and business investment by carrying out practical actions like accelerating public administration reform in tax, customs, land, construction and business registration fields; providing public services via electronic networks, including business registration, tax and customs; maintaining online dialogues between investors and provincial leaders; perfecting public service units.
Next, improving the quality and professionalism of investment promotion, advertising and marketing activities; promoting focused and selective investment, targeting at potential markets like Japan, South Korea, Singapore and Thailand; attracting strategic investors to provide tourism, airport and seaport services and building Chan May - Lang Co Economic Zone and industrial zones.
Then, enhancing dialogues with citizens, building confidence of the business community in State governance and provincial development orientation so as to create a high consensus on common socioeconomic development goals.