Ha Giang Attracting Investment in Key Sectors

4:10:07 PM | 23/11/2017

Not only famous for Dong Van Karst Plateau Geopark with Hoang Su Phi terraces, Ha Giang is also a land of medicinal and border trade. From the natural and human heritage to the spirit of tectonic development, the land of Ha Giang has become active and attractive to investors.

On the threshold of the Ha Giang Investment Promotion Conference 2017, Vietnam Business Forum interviewed Mr Nguyen Van Son, Chairman of Ha Giang People's Committee, on the investment attraction strategy of the province. Thanh Nga reports.

What are the focus areas of Ha Giang province's investment attraction?
Ha Giang is a mountainous province located in the northernmost part of Vietnam, with majestic mountain scenery, especially with Dong Van Karst Plateau Geopark. In Ha Giang, there are 19 ethnic groups living together with special festivals, natural heritage and human heritage attracting many visitors to explore. The number of tourists to Ha Giang is increasing, this year Ha Giang will welcome about one million visitors with turnover of about VND 950 billion. With this advantage, we plan to make Ha Giang a key tourism destination by 2020. This place is not only an ideal destination but also opens up a space for connecting tourism between Northeast and Northwest.

In addition, nature has given Ha Giang a mild and favourable climate for the development of precious medicinal herbs. Ha Giang has 1,101 species of rare medicinal plants. The province has built specialized areas of more than 9,000 ha. This farming area is responsible for three tasks of improving income for farmers, ensuring livelihoods for the people and also creating more specific agricultural products of the province, supporting the development of tourism and helping to make Ha Giang a national herbal centre.

Ha Giang has seven border districts bordering Yunnan and Guangxi provinces, China. The province has Thanh Thuy international border gate, three suburban border gates, 11 opening roads and 27 border markets. Since 2014, the Thanh Thuy border gate has been upgraded to a border gate economic zone, a gateway for economic cooperation between Guangxi and Guangdong provinces (China) with Vietnam and also the ASEAN market.

The potential for cross-border trade is huge. In 2016, the total value of import-export turnover reached US$ 1.385 billion; estimated to reach US$ 2.7 billion in 2017. At Thanh Thuy Border Economic Zone, Binh Vang Industrial Zone; Nam Quang and Tan Bac industrial clusters are ready to serve investors.

We have specific strategies to focus on the strong areas which are three pillars of the economy: tourism, pharmaceuticals and cross border economy. These three areas have been implemented by the province and focused on attracting investment.

Over the past time, Ha Giang province has improved the investment environment with specific solutions and breakthroughs in administrative reform. Could you please share more about these efforts?
First of all, I affirm that Ha Giang has the highest support for investors as well as the development of the business community. Apart from preferential policies issued by the Government, the province also has its own policies and mechanisms.

1. Preferential tax:
- Applying the corporate income tax rate of 10 percent for the first 15 years of taxable income from the projects.
- Exemption of corporate income tax for 4 years and reduction by 50 percent of corporate income tax for the next 9 years.
- Exemption of import duties on assets constituting fixed assets

2. Land incentives
- Create clean land fund for projects
- Support for compensation for ground clearance of investment projects
- Exemption of land rent fee during construction period not exceeding 3 years from the date of receiving land lease decision or 11 years after the completion of construction period.

3. Agriculture
- Providing 100 percent interest rate for bank loans for a maximum period of 60 months for projects on planting, processing and preserving medicinal herbs, tea and oranges under modern technologies.
- Supporting investment projects and building factories for processing pharmaceutical materials, as well as many preferential policies as stipulated in resolution 35/2016 HD-HDND on July 21, 2016 of the provincial People's Council on a number of policies to encourage the development of tourism in Ha Giang province.

4. Tourism
- Support for the basic construction of accommodation, resorts, restaurants and other preferential policies.
- Support for investment in community tourism and cave tourism.

5. Border trade
- Local state budget supports compensation for ground clearance of land in industrial parks and clusters, border-gate economic zones.
- Providing preferential corporate income tax, applying preferential tax rates to enterprises investing in border-gate economic zones and issuing many preferential policies on goods export, investment in infrastructure and business premises stipulated in Resolution 206/2015 NQ-HDND dated 16 December 2015 by the provincial People's Council on the promulgation of a number of cross-border economic development policies. All these measures are in order to create maximum advantage for businessmen, investors when coming to Ha Giang and also help the spirit of starting a business in the province.

In 2016, the PCI of the province increased by 4 levels compared to 2015. We carry out one-stop administrative procedures at public administrative centres, registering business via internet; reducing by 30 percent the time for implementation of investment procedures as prescribed. Ha Giang is always ready to welcome organizations, investors to learn, field survey and investment advantages in the province.

What are the impressions and differences that Ha Giang brings investors at the Investment Promotion Conference 2017?
The difference and advantage of Ha Giang in creating competitiveness is its majestic, pristine and multicolour culture. There are many advantages that have not been exploited and that is an opportunity for investors.

With effort and determination, we have implemented many activities to promote investment cooperation with countries such as Japan and Singapore. In 2016, Ha Giang attended the Trade Promotion Conference in 2016 in South Korea; and signed cooperation with 7 Embassies in Hanoi. The province also coordinates with McKinsey & Company, Inc. Vietnam to implement initiatives to implement the investment plan for developing tourism in Dong Van karst plateau Geopark and Ha Giang city to 2025, with vision to 2035.

On November 26, 2016, Ha Giang province will hold an investment promotion conference to help investors better understand the investment environment in the province. Ha Giang invites investment based on three pillars of the economy: tourism, preservation and processing of pharmaceutical materials, border trade. This conference is big in terms of scale and total registered capital, with registered capital up to now of VND 5,600 billion for domestic and international investment projects.

Can you tell us what message Ha Giang will send to investors at the Investment Promotion Conference?
Ha Giang is always ready to welcome organizations and investors to learn, field survey and investment advantages in the province. Ha Giang is a destination with many heroes, rich potential and profound human values. This is a land of value for investors.