Kien Giang Industrial Parks: Dynamic and Flexible in Investment Attraction

10:15:24 AM | 12/1/2016

Thanks to the attention and guidance of the provincial Party Committee and the provincial People's Committee, the support of the government, central ministries and agencies in the area, as well as the close collaboration between departments, agencies in the province and the people’s committees in districts and towns, investment promotion and attraction into industrial parks of Kien Giang has experienced many positive changes, especially in Thanh Loc IP. Vietnam Business interviewed Mr Dang Ngoc Tan, Head of the Economic Zone Management Board of Kien Giang. Minh Kiet-Viet Hung report.

Could you tell us more about Kien Giang’s outstanding results in attracting investment into industrial parks?

Recently, the Management Board have received and held working sessions with many investors coming to study investment opportunity in the provincial industrial parks. Results so far show that Thanh Loc IP has attracted 19 projects, with a total registered area of 74.93 ha; of which 12 have been granted investment certificates, with a total registered area of 52.82 ha and registered capital of VND 3,382 billion. Currently, 8 projects are under implementation, investment value is estimated at nearly VND 1,800 billion and another 7 have registered investment agreements and are waiting for land clearance to hand over to investors. Thuan Yen IP has attracted 2 projects and granted 2 investment certificates for 2 enterprises with a total area of 33.13 ha and total registered capital of VND 587.05 billion.

At Xeo Ro IP, following policy of the Prime Minister, the provincial People’s Committee as well as relevant departments and agencies have worked with Petrolimex and other concerned units to prepare for the investment in projects such as Thermal Power Plant, Gas Processing Plant and Oil Processing Plant.

To improve the efficiency of investment attraction, how have contents like administrative reform or the strengthening of exchanges and dialogue with local and foreign investors been focused on and implemented by the Management Board?

Currently we have developed and applied a code of administrative procedures of 65 procedures in the Management Board according to Project 30 of the government. Also, every year we do research, update legal documents and law provisions to review in-force procedures as well as to amend, supplement or eliminate unnecessary paperwork; standardizing regulations on procedures and dossiers; shortening administrative processes, ensuring a timely, accurate and efficient settlement for investors and in compliance with regulations. We have also finished the implementation of the Scheme “Receiving and resolving administrative procedures using one stop shop mechanism”; have been constructing to perfect the quality management system according to ISO 9001:2008 in order to create an open, transparent and equal investment –business environment, favourable for businesses and investors.

Besides the administrative reform efforts, the Management Board also has performed propaganda, held legal guidance sessions as well as keeping regular contact and working directly with businesses to monitor and maintain exchange to stay well informed on projects’ progress, thus ensures timely support, aiding enterprises in solving difficulties and problems. In the coming time, we will continue reviewing the code of administrative procedures under the Management Board’s authorization towards simplification, eliminating unnecessary procedures and rules. We also will effectively apply the quality management system under ISO 9001: 2008 in order to reduce time and costs for businesses; while continuing to design the scheme “Receiving and resolving administrative procedure using one stop shop mechanism”, gradually moving toward handling administrative procedures for enterprises through the network environment.

In order to effectively meet the demand for high quality human resources of provincial businesses in general and in particular IPs, what kind of policies does Kien Giang have to support businesses in recruiting and training of labour?

On 29th January 2011, Kien Giang Provincial People's Committee issued Decision 347/QD-PC approving the Scheme of Vocational training for rural workers period 2011-2015 and orientation to 2020. Accordingly the province will provide funds for short-term vocational training (less than three months) for businesses employing rural workers with a maximum of VND 3 million/person/course; specific amount differs among courses as well as training periods. The PPC also issued Project 106/KH-UBND dated 11th November 2014 on Training unskilled labourers in industrial parks and complexes as well as resorts in Kien Giang towards 2020 aiming to mobilize the maximum of labour resources in the province to participate in training and retraining; by that effectively meeting human resources demand of enterprises, on the other hand creating jobs for locals.

The Management Board always proactively seeks recruitment information of projects in industrial parks, especially projects of relatively large force, then coordinates with relevant units to prepare human resources to provide for businesses.

In addition to the application of investment incentives, what other flexible solutions has Kien Giang been using to invite and attract more investors to provincial industrial parks?

In addition to investment incentives, Kien Giang also focuses on strengthening propaganda, promoting the province’s image as well as introducing potential strengths of the area in general and the industrial parks in particular; we also actively attend conferences, seminars, forums and economic cooperation, both within and outside the province, to promote investment; proactively approaching investors and enterprises to introduce opportunities, provide information and invite investment; proactively implementing administrative reform to help create favourable conditions for enterprises in investment procedures.

Regarding investment areas, recently the Management Board has completed 23 administrative procedures; shortening the time period for investment certificate granting and adjustment; specifically, granting new certificate takes four days/procedure on average while certificate adjustment is two days/procedure. To create favourable conditions for investors in implementing projects, during the process of handling administrative procedure, even though there’s been still a number of projects coming up short on required documents as well as procedures, the Management Board proposed to the PPC to extend the time frame allowing investors to complete their files in 1-2 months after the investment certificate grant. Also, the Management Board focused on promoting the application of information technology in administrative work; keeping the official website updated so that investors and businesses can easily collect information as well as performing administrative procedures.

What is the direction for investment attraction of the province in the near future, as well as the priority sectors in your industrial parks?

According to the general orientations to 2020, the province will focus on the three IPs: Thanh Loc, Thuan Yen and Xeo Ro. We will strive to fill up Thanh Loc IP and Thuan Yen IP, while attracting more investment into Xeo Ro; calling foreign as well as domestic investors to come research, invest in construction and engage in infrastructure business in the two IPs Tac Cau and Kien Luong II.

Thanh Loc IP, meanwhile, will prioritize projects in: production of consumer goods; food and beverage manufacturing; processing and storage of agricultural and fishery products; production of packaging as well as paper, plastic and glass products; wood processing and wood products; electronics assembly; textiles and footwear; production of building materials. Thuan Yen IP will focus on calling investment into projects such as: processing of agricultural and fishery products; food and consumer goods manufacturing; export crafts; electronics assembly, garments and footwear; production of construction materials; forestry products and furniture.