Thai Nguyen Creating New Driving Force for Investment Inflow and Business Development

10:19:12 AM | 4/12/2020

Lying in the northern upland and mountainous region, Thai Nguyen province is part of the greater Hanoi planning area with a lot of outstanding advantages such as geographical location, climate, natural resources, human resources, and synchronous modern infrastructure, dynamic and friendly administration and a favorable environment.

In recent years, Thai Nguyen has attracted many large domestic and foreign corporations. Samsung Group has particularly helped boost the province’s stable and sustainable socioeconomic development. In the 2016-2020 period, the economic structure has been positively shifted, with a sharp rising share of industry and construction and a decreasing share of agriculture, forestry and fisheries in the total Gross regional domestic product (GRDP). In 2020, the economic structure is made up of 59% industry and construction, 31% service, and 10% agriculture, forestry and fishery. The province has mobilized VND238 trillion (US$11 billion) of total investment capital and attracted more than 90 foreign investment projects. The non-state business sector has kept expanding, with about 350 new companies established a year. In 2016-2020, the province has really made a breakthrough in developing industrial parks for enterprises. Specifically, Samsung high-tech complex licensed more than 90 projects which formed supporting projects for giant corporations in the world. Typical industrial parks include Yen Binh, Diem Thuy and Song Cong.

To achieve these results, in addition to unlocking local potential advantages, Thai Nguyen has built good infrastructure in industrial parks like Song Cong I (195 ha), Song Cong II (250 ha), Nam Pho Yen (120 ha), Yen Binh (400 ha), Diem Thuy (350 ha) and Quyet Thang (105 ha).

Mr. Vu Hong Bac, Chairman of Thai Nguyen Provincial People's Committee, said, authorities at all levels always step up administrative reform, improve the business environment and enhance competitiveness. The province has adopted many solutions to achieve these purposes. Priority is given to attracting investors using modern technology and making products with high added value.

In 2019, the Thai Nguyen province scored 67.71 points of the Provincial Competitiveness Index (PCI), ranking 12th in the country, six places higher than in 2018. In the last six years, Thai Nguyen has always been in the top 20 performers in the country in PCI rankings. To further improve the PCI in 2020 and the following years, the province is stepping up a review of the business environment; increasing business meetings and dialogues at many levels; developing SME support programs, fostering the transformation of business households into enterprises; publicly and transparently posting information on relevant websites; speeding up administrative reform, accelerating the online business registration; reorganizing and strictly handling badly behaved collectives and individuals. In particular, Thai Nguyen province is carrying out six commitments of the government to businesses and investors to create a new driving force for investment attraction and business development in the locality.

SIX COMMITMENTS OF THAI NGUYEN PROVINCE WITH INVESTORS

1. Establish a communication hotline channel for the Secretary of the Provincial Party Committee and Chairman of the Provincial People's Committee to receive information and immediately resolve petitions from businesses.

2. Support and facilitate businesses to expand operations, change production and business plans and change investment licenses.

3. Ensure external security and order for enterprises and industrial parks, ensure safety of workers hired by local enterprises.

4. Support businesses to train workers, provide human resources with technical expertise and a sense of discipline.

5. Ensure adequate electricity supply around the clock; invest in the grid to the fence of investment projects in industrial parks.

6. Provide best support for site clearance, apply maximum incentives for businesses in the framework of the Government on tax exemption and reduction, land rent and water surface rent.

Source: Vietnam Business Forum

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