Boosting Investment Attraction and Business Development

The complicated COVID-19 epidemic development has affected investment, production and business activities in Thai Nguyen province. However, with a flexible, dynamic approach, and the efforts and consensus of the political system, businesses and people, Thai Nguyen province has achieved outstanding results in investment attraction and business development, helping realize the so-called “dual goals” of economic development and epidemic prevention.

Flexible, adaptable investment promotion

In order to flexibly, safely and effectively adapt to the COVID-19 epidemic and meet practical requirements, Thai Nguyen has actively changed its investment promotion approach. Instead of opening offline investment promotion as before, the province has shifted to online investment promotion. Accordingly, the Provincial People's Committee directed relevant agencies to make publications and videos to introduce the province's environment, policies, potential and opportunities to investors and post on mass media. Especially, on the province's investment promotion website, https://thainguyendautu.vn, information about projects seeking investment procedures and land rents is regularly updated by relevant agencies to meet the needs of domestic and foreign enterprises to learn about investment opportunities.

With its flexible and innovative investment promotion, despite the complicated COVID-19 epidemic situation, the province still achieved positive outcomes. Since early 2021, provincial leaders received and worked with more than 30 domestic and foreign investors to explore investment opportunities, including Capital United Group (US), MDA E&C Co., Ltd (South Korea), Saigon Telecommunications Technology Joint Stock Company, FLC Group, BRG Group, and Phu My Hung Company.

Impressive numbers

The province developed specific mechanisms and policies to attract resources and investors to the province, with priority given to projects located in industrial zones. Thai Nguyen advocates selecting financially capable and well-reputed investors while resolutely revoking investment licenses of projects that fail to fulfil their commitments, or slow-moving, inactive ones.

Moreover, synchronous infrastructure, especially traffic infrastructure, has enabled Thai Nguyen province to attract more investment inflows. Many important projects have been launched in the province, including Bac Giang - Thai Nguyen - Vinh Phuc Road, Hanoi Ring Road V, Ho Chi Minh Road running through Thai Nguyen, extended Bac Son Road and Ben Tuong Bridge. Besides, traffic infrastructure and industrial zone infrastructure were also constructed and expanded. Hence, investment inflows to Thai Nguyen province continued to improve in the past year.

 As of the end of 2021, Thai Nguyen province had 169 FDI projects with a total registered capital of US$9.67 billion. There are 856 valid domestic investment-funded projects (not sourced from the budget) with registered capital of over VND150 trillion.

At the same time, the Thai Nguyen Provincial People's Committee approved investment licenses for many giant projects such as a 5-star Nui Coc Lake international resort in Tan Thai commune, Dai Tu district, costing over VND2,500 billion invested by Flamingo Holding Group Joint Stock Company; Yen Binh Information Technology Park that costs over VND2,900 billion for construction, Tan Phu 1 and Tan Phu 2 industrial zones in Pho Yen town, and Luong Son Industrial Complex in Song Cong City invested by Saigon Telecom Technology Joint Stock Company.

Thai Nguyen province also licensed many projects into industrial zones, including the US$200 million Trina Solar Energy Development Plant in Yen Binh Industrial Park; US$80-million DBG Technology Factory; US$80-million Sunny Opotech Factory, expected to be expanded to US$260 million in 2022. In the near future, Thai Nguyen province will continue to invest in the 250-ha Song Cong II Industrial Park and 675-ha Phu Binh Urban, Industrial and Service Town, in addition to urban areas and industrial zones along the Hanoi Belt Road 5.

Recovery momentum

In 2021, the province granted new business registrations to over 800 businesses, with a registered capital of VND10,330 billion; granted adjustments to 1,686 enterprises; and granted the establishment certificates to 401 affiliated entities. The total number of enterprises in the province amounted to more than 8,000 enterprises with a total registered capital of more than VND120 trillion.

Accordingly, Thai Nguyen province managed to draw many large-scale investment projects like Saigon Telecom Technology Joint Stock Company (SAIGONTEL); Tan Hoang Minh Hotel Service Trading Company Limited; Flamingo Holding Group Joint Stock Company; T&T Group Joint Stock Company; MDA E&C Co., Ltd (South Korea); FLC Group Joint Stock Company; GreenFeed Vietnam Joint Stock Company; and Sunny Opotech Vietnam Co., Ltd.

With determined efforts of all levels and sectors and the support of the business community, the investment and business environment of Thai Nguyen province has been constantly improved. In 2016-2020, the Provincial Competitiveness Index (PCI) of Thai Nguyen province climbed to the Top 20 with good governance quality. In 2020, its PCI Index rose to 66.65 points, ranking No. 11 out of 63 provinces and cities in the country, and leading the northern mountainous provinces. These will be favorable conditions and motivations for the province to complete the "dual goals", boost investment attraction and enhance the PCI.

By Ha Thanh, Vietnam Business Forum