Golden Opportunity for Phu Quoc to Draw Investment Flows

10:24:26 AM | 3/7/2020

The economic growth rate of Phu Quoc district, Kien Giang province, is higher year after year. The economic structure has shifted towards a desired pattern with a rising share of service and a decreasing share of agriculture, forestry and fishery. The annualized GDP growth was 27.52% and per capita income was VND115.34 million year. Particularly, with an open investment environment, attractive investment incentives, and the enthusiastic support of local authorities, Phu Quoc has become an ideal destination for domestic and foreign investors.

Phu Quoc district has a natural area of 593 km2, including 22 islands. Phu Quoc Island, the largest island of the district covering 567 km2, has great advantages such as a long coastline and many beautiful beaches, primeval forest mountains and favorable weather for tourism development. Defining that investment in a complete infrastructure system is an important factor to create a driving force for socioeconomic development, defense - security strengthening and improved quality of life for people, the district has attracted major programs and projects like An Thoi International Seaport, Phu Quoc International Airport, Ha Tien - Phu Quoc 110 KV sea-cross underground electric cable project, North - South Phu Quoc traffic route, Phu Quoc encircling road, Duong Dong breakwater, An Thoi fishing port, Duong Dong Lake upgrading for water supply, international passenger ship port, and waste treatment plants.

In addition, branch roads and trunk roads in tourist areas and resettlement areas in the district are under construction. Procedures are being completed for an ODA-funded wastewater treatment facility. Invested by the Government of Vietnam and Kien Giang province, the infrastructure system on Phu Quoc Island has been upgraded for better performance and service for tourism development. Thus, Phu Quoc's economic growth is higher year after year. The economic structure has shifted towards a desired pattern where the share of service is rising and the share of agriculture, forestry and fishery is declining.

To boost the effect of investment attraction, the Phu Quoc Economic Zones Authority and other provincial agencies hosted many domestic and foreign investment promotion programs and achieved encouraging results. To date, Phu Quoc has attracted 321 investment, hiring 10,936 ha (including eight FDI projects associated with land use), of which 289 projects were granted investment certificates (hiring 10,162 ha of land and registering to invest VND340,366 billion) and 32 projects are completing procedures. Among licensed projects, 47 projects are in operation, hiring 1,191 ha and investing VND15,228 billion and 75 projects are under construction (of which 15 projects are partially in operation)

Mr. Nguyen Thanh Tung, Director of Phu Quoc Economic Zones Authority, said, Phu Quoc has attracted a lot of investors because the Party Committee, authorities and people of Kien Giang province, as well as the Phu Quoc Economic Zones Authority, focused mobilizing resources for investment in essential infrastructure development; proposed investment incentives; focused resources on building infrastructure; and introduced effective measures to deal with emerging hardships faced by investors and businesses. Accordingly, project investors in Phu Quoc will be entitled to incentives on corporate income tax and import tax, land rent exemption and reduction, personal income tax exemption and reduction, immigration, and residence. As Phu Quoc is classified as a locality with extremely difficult socioeconomic conditions, investment projects here are entitled to highest preferences in the regulatory framework in addition to other incentives under the law. With the open policy mechanism and attractive investment incentives, many world-renowned corporations have located their projects in Phu Quoc.

To draw more investors to Phu Quoc, the Phu Quoc Economic Zones Authority is developing a plan to invite domestic and foreign investors to build wastewater treatment systems to ensure sustainable environmental protection for Phu Quoc; build high-quality hospitals, establish human resource training centers for tourism and trade sectors and non-tariff areas in Phu Quoc International Airport. The authority proposed the Provincial People’s Committee and relevant agencies to apply policies on capital sources, scientific research and project selection to work out reasonable and effective investment and development plans for Phu Quoc island. It also completed the scheme on upgrading Phu Quoc to a centrally governed city. “Phu Quoc has been recognized as a second-class city but the administrative apparatus is still at the district level. Therefore, the establishment of Phu Quoc city of Kien Giang province is necessary to strengthen the administrative apparatus to carry out state management on Phu Quoc Island and arrange more investment capital and budget revenue for Phu Quoc to upgrade infrastructure. The government of Vietnam recently ratified the revised plan of building Phu Quoc into a special administrative - economic unit. This is expected to facilitate Phu Quoc to attract investment capital, technologies and advanced management methods from other countries, especially from well-reputed corporations,” he emphasized.

Source: Vietnam Business Forum