Quang Tri Creating Outstanding Competitive Advantages in Investment Attraction

3:09:40 PM | 1/12/2015

Endowed with advantages in geopolitical economic position and natural resources, plus combined maritime and historical tourism, combined with good infrastructure, high-quality human resources, and effective administrative reform, Quang Tri province has outstanding competitive advantages in investment attraction. Vietnam Business Forum Magazine has had an interview with Mr Tran Duc Tam, Director of the Department of Planning and Investment of Quang Tri Province, on this issue. Le Sang reports.
Infrastructure development, especially of the traffic system, has facilitated trade development across the country, including Quang Tri. With its untapped potential opening up with this advantage, how has Quang Tri attracted investment capital?
Geo-economic advantages enable Quang Tri province to expand economic cooperation with Greater Mekong Sub-region countries. Particularly, the province is a traffic hub at the middle of the country and the starting point of the East-West Economic Corridor which links to Laos, Thailand and Myanmar via Lao Bao International Border Gate from central seaports like Chan May and Danang. Currently, Quang Tri has focused on transport infrastructure investment and development and tapped existing potential to realise investment advantages and attract investment capital.
Some new typical advantages include National Road 1A which is being upgraded and expanded. Ho Chi Minh Trail (East Branch and West Branch), seen as a western highway, has been upgraded to serve north-south transportation demand. North - South Railway runs past seven districts and towns in the province. As the starting point of the East West Economic Corridor (EWEC) stretches on 1,450 kilometres via 13 provinces in four countries, including Myanmar, Thailand, Laos and Vietnam. After the Friendship Bridge, which crosses the Mekong River to link Mukdahan and Savannakhet provinces, was inaugurated in 2006, EWEC’s role in socioeconomic development of Quang Tri province became clearer.
To unlock Quang Tri province’s outstanding advantages, on September 16, 2015, the Prime Minister signed Decision 42/2015/QD-TTg to establish Dong Nam Quang Tri Economic Zone, which covers a a total area of 237.92 square kilometres in 17 communes and towns along the coastal districts of Hai Lang, Trieu Phong and Gio Linh where there are 77,000 residents. Currently, the province has completed the planning for central areas covering 11,469 ha and called investment capital for driving projects like My Thuy Seaport, infrastructure system, power centre and offshore gas production projects.
The economic zone comprises six functional areas, including industrial zone, administrative zone, residential zone tourist zone, service zone and My Thuy deepwater seaport. This promises to be a general multi-industry economic zone, a groundbreaking investment point of Quang Tri province, and a very important development engine of the central region. This is also designed to be an international trade centre, an agro-forestry and fishery processing centre, a centre of construction material production and energy production, a tourism centre and a major seaport of the central region.
What solutions and directions has Quang Tri province taken to further promote and enhance investment efficiency?
The Provincial People's Committee has announced the list of projects in need of investment capital from 2015 to 2020. The following are some key projects.
- Electricity - energy sector: Two major projects, including a 1,350 MW gas-fuelled power plant and a 110 MW wind-to-power complex.
- Manufacturing and processing sector: Eight key projects, including animal feed processing plant; beer, wine and beverage production plant; industrial wood processing and production plant; pulp and paper material production plant; rubber product manufacturing plant; gypsum product production plant; export garment-textile and leather – footwear production plants; and cow-fed grass growing project.
- Trade - service - tourism sector: Five key projects, including a hotel - resort complex along the Cua Tung - Cua Viet coast; Truong Son service - tourism complex; a trade centre project; a 18-hole golf course; and a bonded warehouse and logistics services complex.
- Infrastructure sector: Three key projects, including the investment and operation of infrastructure in Tay Bac Ho Xa Industrial Park; the investment and operation of infrastructure in Dong Nam Economic Zone; and My Thuy Port construction project.
Quang Tri province has seen about 100 industrial projects with a registered total investment capital of VND4,000 billion started since 2011, of which 80 projects with a combined investment of VND3,500 billion have gone into operation. The province has attracted 19 official development assistance (ODA) projects with over VND4,700 billion.
Quang Tri province has set a target GDP growth of 12.5 - 13.5 per cent a year to 2020. To achieve this goal, the province will attract more investment capital for locally advantageous sectors and is currently pushing up the implementation of following solutions:
Firstly, improve and enhance the provincial competitiveness index (PCI), better the production and business environment. Accordingly, the province upholds the responsibility of unit leaders in solving difficulties and problems claimed by enterprises. The province keeps regular contact, listens, supports and accompanies businesses to bring its PCI ranked position to the country's top 20.
To step up administrative reform, enhance the sense of responsibility and the sense of duty of officials and civil servants in order to facilitate and reduce costs for citizens and businesses; carry out the Government’s policies on administrative procedure reform in import, export, entry and exit; effectively operate the single-window mechanism at the Lao Bao - Densavan Border Gate, apply electronic service at State agencies; improve the transparency and enhance access to information and land fund for businesses; avoid overlapping inspections that harass or impede operations of businesses.
Secondly, accelerate the implementation of consistent policies and approaches regarding investment attraction; encourage and facilitate all economic sectors to invest and operate infrastructure, pilot socialised investment for some bus stations, ports, health facilities and schools so as to mobilise funds from the private sector.
To speed up infrastructure construction and change investment attraction methods; strongly improve the investment climate to attract foreign direct investment (FDI), especially strategic investors and big and driving projects; actively utilise supports from central authorities to effectively solicit and carry out ODA projects.
Thirdly, improve the quality of human resources to meet investors’ demand for high-quality workforce; effectively apply employment policies to lure and keep attract expert and skilled workers to the province.
Fourthly, strengthen investment promotion and attraction; concentrate on building databases, publications and documents to serve investment promotion activities and introduce lists of projects calling for investment capital; organise and take part in promotion activities to introduce investment and business environment, policies, potential, opportunity and connections.
In addition carrying out the above solutions, Quang Tri province will continue to plan the development of industries and material zones; review investment incentives so as to add incentives for investors; consolidate, organise and rearrange the apparatus responsible for implementing investment promotion activities to enhance their professionalism.
What opportunities will the Quang Tri Investment - Tourism Promotion Conference 2015 bring to investors?
The Quang Tri Investment - Tourism Promotion Conference 2015 is a key activity of the province in 2015, aimed to introduce and promote local investment potential, advantages, incentives, mechanisms and projects. Besides, the conference will collect opinions from investors and economic and social organisations about administration in order to create a favourable environment for investors. This is also a forum for domestic and foreign institutions, investors and businesses to meet, interact, exchange experience, and establish partnerships and joint ventures for development.