Kon Tum Province: Investment Attraction Efficiency Enhanced - Top Priority Placed on Project Quality

4:26:06 PM | 2/8/2016

In recent years, Kon Tum province’s efforts to raise competitiveness, reform administrative procedures and improve the business and investment environment have produced encouraging results, caught the interest of investors and drawn many big domestic and foreign projects into the province. The following exchange with Mr Le Ngoc Tuan, Director of the Department of Planning and Investment of Kon Tum, will depict the bright side of investment attraction picture of Kon Tum province. My Chau reports.
Could you please talk more about investment attraction results in 2010 - 2015 in Kon Tum province?
Kon Tum province has seen an optimistic progress in investment attraction in the past time, evidenced by increasing projects and investment capital. As of June 30, 2016, as many as 203 investment projects were licensed to locate outside economic and industrial zones and 43 projects into economic and industrial zones. Among them, 223 out of 246 projects are valid with a total registered investment capital of VND412,280.773 billion. Particularly, in the 2010 - 2015 phase, the province had 153 out of 167 projects capitalised nearly VND24,664.783 billion licensed.
As an investment advisor to the province, how do you assess investment project and quality inspection and supervision in the province?
In the past years, in addition to drawing new projects, the province has attached much importance to investment project inspection and supervision, thus enabling us to understand difficulties and obstacles facing investors when they carry out their projects. Registered projects must experience careful selection in order to ensure quality of projects and capacity of investors. Nevertheless, some licensed projects are still being carried out behind schedule. After review and inspection, the Provincial People’s Committee revoked 23 investment projects.
In the coming time, the Department of Planning and Investment will continue to review all licensed projects to force slow-moving investors to respect pledged progress or advise the Provincial People’s Committee to repeal investment certificates from investment projects delayed without appropriate reasons. We will base on reviews to choose really capable and active investors for the province. Besides, according to Investment Law No. 67/2014/QH13, which came into effect on July 1, 2015, the Provincial People’s Committee will request investors to have financial deposits to ensure the deployment of their projects as pledged.
To create favourable conditions for domestic and foreign investors to Kon Tum province, in addition to investment support and incentive policies, what else has the province endeavoured to show its highest determination to help investors to live through hardships?
To promptly capture and remove difficulties and obstacles against businesses, the Provincial People’s Committee increased meetings and dialogues with businesses; intensified investment monitoring and assessment; completed the Q&A and policy contributions for the public and enterprises on websites of provincial agencies; received policy recommendations concerning investment issues, especially those relating to investment, land, construction and environment. At the same time, the provincial government directed provincial departments, agencies, districts and cities to effectively implement tasks and solutions to resolve difficulties and obstacles that enterprises and investors face in production and business operations, support them to develop markets and settle bad debts according to Resolution No. 02/NQ-CP of the Government dated January 7, 2013.
Besides, to carry out Resolution No. 19/NQ-CP of the Government dated March 12, 2015 to create a favourable and transparent investment and business environment for businesses and investors in the province, the Provincial People’s Committee directed provincial departments and agencies to implement Plan No. 1221/KH-UBND dated May 23, 2014 on improving the business environment and enhancing provincial competitiveness, Plan No. 1324/KH-UBND dated June 26, 2015 on further improving the business environment and enhancing competitiveness in two years from 2015 to 2016, and the Plan No. 3304/KH-UBND dated December 24, 2014 on implementation of Conclusion 1422-KL/TW dated October 28, 2014 of the Standing Committee of the Provincial Party Committee on investment attraction and competitiveness improvement in the province.
Besides, for the time being, to execute Resolution No. 43/NQ-CP of the Government dated June 6, 2014, Kon Tum province issued Decision No. 231/QD-UBND dated April 24, 2015 to apply procedures for projects using land according to Resolution No. 43/NQ-CP of the Government. Specifically, the province will abolish investment registration procedures or investment inspection into projects not using land and not operating in conditional fields; replace procedures concerning investment certificate review and granting when investors join land-use auction events.
After the Investment Law 2014 come into force on July 01, 2015, the province instructed provincial departments, branches and localities to implement it and simultaneously guided relevant units to reduce the time reqired to handle investment procedures from 35 working days to 15 working days. This was considered a dramatic progress in investment attraction in Kon Tum province.
In the long term, the province will carry out business support solutions and hold dialogues with them not only at provincial level but also at unit and local level to improve the quality and effect of investment attraction. The most important point is resolving difficulties against enterprises via monthly meetings and dialogues.
The ranking of the provincial competitiveness index (PCI) of Kon Tum province in 2015 improved but was still below expectations. Does the province have any plans to improve its PCI in the coming time?
According to the PCI Report 2015, the PCI ranking of Kon Tum province climbed up four places over 2014 to the 52nd position out of 63 provinces and cities nationwide, scoring 56.55 points and standing in the group of average provinces. Among 10 PCI component indices, Kon Tum province saw improvements in seven indices, declines in two indices and unchanged cores in one index. The low PCI ranking of the province was attributed to its slowly improved investment environment. This will require greater efforts from all branches and tourism to carry out tasks of improving investment climate and competitiveness.
Without doubt, a good investment and business environment is generally evidenced by low market entry costs, easy access to land and stable land use, transparent business environment and public business information, low informal expenses for audit and administrative procedures, and creative and dynamic leadership. To gradually improve the provincial competitiveness, better investment and business environment, and attract potential investors, Kon Tum will focus on raising the awareness and responsibility of Party committees, authorities and civil servants in building and bettering investment and business environment, carrying out investment attraction and incentive policies and business development support, speeding up public administration reform, enhancing transparency and quality of public service works, and maintaining regular dialogues and meetings between provincial leaders and business leaders.
With the high enthusiasm and determination of the entire province, Kon Tum expects to raise its PCI rankings in 2016 and beyond.