10:42:39 AM | 24/12/2015
The Phu Tho Provincial People’s Committee in cooperation with the State Bank of Vietnam (SBV) recently held Conference on Investment Promotion of Phu Tho Province 2015. Under the chairmanship of Politburo Member, Deputy Prime Minister Nguyen Xuan Phuc, Head of the Northwest Steering Committee, the conference attracted more than 500 delegates who were government officials, representatives from central agencies, embassies, international trade organisations, economic experts, entrepreneurs and investors in Vietnam and the world.
Addressing the opening session, Mr Hoang Dan Mac, Secretary of the Phu Tho Provincial Party Committee and Chairman of Phu Tho Provincial People’s Council, said, situated in the heart of the region, standing in the northwest gateway to Hanoi, serving as a bridge for Northwest provinces and Red Delta provinces, and lying on Haiphong - Hanoi - Kunming Economic Corridor, Phu Tho province gathers all favourable conditions for economic and commercial development with other localities in the country and other nations in the world. However, development achievements in recent years are not commensurate with local potential and strengths. That is why Phu Tho organised this event to seek investment capital and resources to tap local potential and strengths.
Addressing the conference, Deputy Prime Minister Nguyen Xuan Phuc praised the province’s efforts and achievements in the past years. Despite economic slowdown in the past few years, Phu Tho still managed to obtain encouraging social and economic development results, particularly the investment climate. Its provincial competitiveness index (PCI) 2014 climbed 15 places to 39th position from 54th in 2013. Notably, Public Administration Reform Index 2014 ranked 2nd nationwide. This shows that the reform of administrative procedures is promoted to shape a better investment and business climate, and that provincial leaders are active to assist investors to deal with their issues.
However, Phu Tho has not fully tapped its potential and strengths for development. To unlock its pluses, central authorities and Phu Tho province need to coordinate closely to build complete infrastructure, establish cross-industry infrastructure, build attractive mechanisms to draw investment capital for development.
In addition to external supports, Phu Tho province needs to further improve its investment planning quality, end overlapping and replication. Then, the province will be able to define its flagship products in its development planning. Moreover, the province needs resources and personnel to realise four development breakthroughs, that is, infrastructure, administrative reform, human resource training and tourism development.
Phu Tho province needs a reasonable allocation of resources, especially land, and calls more domestic and foreign investment capital. It should encourage more forms of investment like BOT, BT and PPP to draw the fancy of investors. In addition to sustainable and green economic growth, Phu Tho province also focuses on preserving, restoring and upholding its cultural identity.
With the coordination of the State Bank of Vietnam and the Phu Tho Provincial People’s Committee, four big commercial banks - Vietinbank, Vietcombank, BIDV and Agribank - signed credit agreements with local firms. Up to 13 projects will be funded by four lenders with a total value of over VND8 trillion. Le Duc Tho, General Director of VietinBank, said that his bank has granted big loans bearing preferential interest rates and carrying favourable conditions for customers in the region. Phu Tho province is also a target market of Vietinbank where four branches are in operation. The lender’s outstanding credit in the province is VND5,988 billion, accounting for 39 per cent of total corporate loans of credit institutions in the province.
Vietinbank is committed to financing and supporting domestic and foreign companies in business promotion programmes and socioeconomic development projects in Phu Tho province. Typical projects include a brick factory project (VND1,350 billion) invested by Tasa Ceramic Tile Joint Stock Company in Thuy Van Industrial Park and a paper production line (VND412 billion) with an annual output capacity of 25,000 tonnes invested by Viet Tri Paper Joint Stock Company, Hai Linh Port (VND230 billion) and many other investment projects of local companies likePhu Tho Travel - Trading Services Joint Stock Company, Phu Tho Textile Co. Ltd., KSA Polymer Hanoi Joint Stock Company and Vingroup.
The conference also listened to many expert speeches on a number of issues of concerns and solutions for a better investment and business environment from domestic and foreign specialists and investors. The event was an opportunity for provincial authorities to introduce its investment attraction mechanisms and policies in place. This was also a chance for businesses and organisations to survey, study and assess untapped potential and advantages in Phu Tho province to consider investment or cooperation plans in the future.