Investment Attraction Coupled with Project Acceleration

9:46:03 AM | 11/11/2020

“In 2020, in addition to innovative changes in investment promotion and attraction, Thua Thien Hue province always supports businesses and investors to deal with difficulties and obstacles in the way to speed up project implementation,” said Mr. Nguyen Dai Vui, Director of the Department of Planning and Investment of Thua Thien Hue, to Vietnam Business Forum’s reporter.

Based on what it achieved in 2019, Thua Thien Hue province with great determination set goals for investment attraction in 2020. Could you please tell us more about this determination?

The year 2019 witnessed the province’s successes of investment promotion and attraction. While creating an open investment environment, the Provincial People's Committee announced a list of 67 detailed projects seeking for investment fund. In 2019, the province licensed 39 projects with a total registered capital of VND22,156 billion (US$1 billion), 2.2 times higher than the set target. Many big investors are studying to invest in the province such as Vingroup, Sun Group, FLC Group, Sovico, Vietravel, Hoi An Hoang Gia Group and Van Phu - Invest.

From the above results, the Provincial People's Committee launched the Investment Promotion Plan for 2020 (Plan 114/KH-UBND dated May 6, 2020). Accordingly, the province aimed to attract 20 projects with VND10 trillion (US$400 million). However, due to the COVID-19 epidemic, in the first nine months of the year, 13 projects were licensed with VND4,583 billion (US$200 million), including four FDI projects (US$16 million) and nine DDI projects (VND4,226 billion). The most notable project was the VND2,655 billion car manufacturing and assembling plant invested by Bach Viet Auto Industry Joint Stock Company.

While attracting investors, the Provincial People's Committee also directed relevant agencies to focus on supporting enterprises to complete procedures and promptly remove their difficulties to speed up their project execution. The committee approved a list of 63 projects, already kicked off, and 21 key projects needed to be urged for progress in 2020 (Decision 577/QDUBND dated March 2, 2020) and assigned the Department of Planning and Investment to act as a lead body in monitoring and reporting results of project implementation and troubleshooting, every 10 days. For 21 key projects, the committee asked all levels and branches to drastically join investors to start 12-15 new projects in 2020.

Nevertheless, impacted by the COVID-19 epidemic, in the first nine months of 2020, only eight projects were kicked off (including three in economic and industrial zones) with a total disbursed fund of VND1,000 billion. Typical projects include Minh Linh commercial apartment project in Dong Nam Thuy An Urban Area, Hue Premium Silica sand and quartz processing facility in Phong Dien district, and a hotel, tourism service and villa complex in Phu Vang district.

Compared with current and future centrally run cities, Thua Thien Hue has its own characteristics and it has its own different approaches to investment attraction. Would you be kind enough to tell us these specific differences?

Resolution 54-NQ/TW of the Politburo dated December 10, 2019 on Thua Thien Hue construction and development to 2030, with a vision to 2045, clearly states “Building and developing Thua Thien Hue to a centrally governed city on the basis of preserving and promoting heritage values of the former capital and cultural identity of Hue characterized by culture, heritage, ecosystem, landscape, environmental friendliness and intelligence; tourism is a key economic sector, information and communication technology is a breakthrough growth drive, industry and high-tech agriculture are the foundation.”

Based on specific orientations, objectives and solutions in development, the Provincial People's Committee issued the Plan 114/KH-UBND dated May 6, 2020 to clarify investment attraction approaches as follows.

The province calls on domestic and foreign investors to invest in agricultural production and agricultural processing; tourism, services and real estate; infrastructure in industrial parks, economic zones and non-tariff zones; industrial production; social security (medical examination and treatment, pharmaceuticals and vaccines, biologicals), education and training; processing, manufacturing, assembling and supporting industries.

Thua Thien Hue prioritizes to attract investment fund into areas supportive for the Industrial Revolution 4.0 and local strengths such as human resources, information technology, cultural and heritage values, high technology, high-tech agriculture, new materials, biotechnology and other related industries that fit the province's sustainable development approach.

In the context of deep integration and the shift of global investment, how has Thua Thien Hue prepared to catch this opportunity?

While free trade agreements between Vietnam and the EU and ASEAN take effect and create new breakthroughs in expanding economic relations with countries around the world, the province is implementing many consistent solutions as follows:

(1) Further renovating and improving investment promotion effect by building investment promotion products based on scientific research, analysis, and survey, area determination and scale, current status, planning and related issues to create investment information to increase investor willingness; forming communication, marketing and product perfection  strategies to call for investment; renovating training and improving the capacity of investment promotion personnel; building domestic and international investor networks; strengthen investment supports like establishing inter-agency working groups.

(2) Fostering infrastructure investment such as seaports, freeways, industrial and economic zones and social infrastructure.

(3) Actively training human resources to meet the investment attraction strategy, especially training workers for investment projects.

Source: Vietnam Business Forum