Economic and Industrial Zones: Key to Investment Inflows

10:18:09 AM | 7/2/2023

Despite facing numerous difficulties and challenges, especially the COVID-19 epidemic, with active and flexible actions of the Kon Tum Economic Zone Authority, economic zones and industrial zones achieved encouraging results in investment promotion and attraction in the past time.  Mr. Vu Manh Hai, Deputy Director of Kon Tum Economic Zone Authority, said the biggest success is that the investment environment of the province in general, and of economic zones and industrial zones in particular, has been improved to enhance confidence among businesses and investors.

Could you briefly introduce the overall picture of investment attraction in industrial zones and economic zones in Kon Tum province? What are the province's goals for developing industrial infrastructure and attracting investment by 2025?

To date, local industrial zones and economic zones have 110 valid projects with a total registered investment capital of VND4,137,187 billion, including 72 projects in production. They annually pay about VND80 billion to the state budget and create jobs for nearly 2,000 local workers.

In 2021 and early 2022, despite the complicated COVID-19 pandemic development, with the effort of Kon Tum Economic Zone Authority and relevant bodies at Bo Y International Border Gate, importing and exporting activities made much progress. Budget revenue, export value, import value, charge and fee collection, service prices, vehicles and merchandise all grew.

Regarding infrastructure construction investment that lays a groundwork for investment attraction and economic development, the 16th Kon Tum Provincial Party Congress determined the task: “…Continue to mobilize capital for infrastructure investment in Bo Y International Border Gate Economic Zone to strongly develop border economy and border trade; accelerate infrastructure investment in Sao Mai Industrial Park, concentrated pharmaceutical production and processing zones, Dak To Industrial Park, industrial clusters; encourage enterprises to invest in developing industrial zones and hi-tech agricultural zones in the province…”

On that basis, Kon Tum Economic Zone Authority advised the province to issue the “Economic and industrial zone development project in 2021-2025 and to 2030” in order to realize the goal of bringing economic and industrial zones into a key driver to draw investment fund for industrial and service development, thus generating a driving force to boost economic restructuring and making significant changes in rural socioeconomic outlook.

With the effort to change from an administrative mindset to a service mindset, what do you think about the administrative procedure reform conducted by Kon Tum Economic Zone Authority in the past time? How has the authority focused on digital transformation in investment management and promotion, localized investment promotion and online investment promotion to enhance the appeal of economic zones and industrial zones?

Carrying out Resolution 07-NQ/TU dated December 3, 2021 of the Provincial Party Committee on leadership in executing socio-economic tasks, national defense, security, Party building and political system in 2022, Kon Tum Economic Zone Authority has actively and promptly removed difficulties and obstacles in order to attract and deploy projects in Bo Y International Border Gate Economic Zone and industrial zones under the motto of “Changing from the spirit of investor companionship to the spirit of active approach.” Up to now, all administrative procedures within its jurisdiction are brought online.

To speed up digital transformation, the authority has coordinated with the Southern Investment Promotion Center to build an application and update data on projects seeking investment funds in the form of a digital map of investment locations of Bo Y International Border Gate Economic Zone, Kon Tum province in 2022 on and, thus facilitating information search and investment attraction.

Together with administrative reform, digital transformation in investment management and promotion is also focused. The authority has received and transferred documents to and from IOffice software with digital signatures; built online meeting rooms and digital transformation plans; continued to maintain and apply the TCVN 9001:2015 quality management system according to ISO standards of the Ministry of Science and Technology; carried out the Program 2359/CTr-UBND dated July 22, 2022 of the Provincial People's Committee on implementation of Resolution 11-NQ/TU dated May 16, 2022 of the Provincial Party Committee (16th term) on improving the investment environment, enhancing competitiveness and increasing investment flows into the province by 2025 and to 2030.

The authority has conducted project inspection and review in a bid to remove difficulties and obstacles for investors; examine and assess regulatory compliance in order to urge, detect and apply/propose measures to handle violations in a timely manner.

What do you think about the local investment and business environment? To raise the Provincial Competitiveness Index (PCI), as a leader of Kon Tum Economic Zone Authority, what message do you want to send to businesses and investors?

On May 16, 2022, the Provincial Party Committee issued Resolution 11-NQ/TU on improving the investment environment, raising PCI and enhancing investment attraction in the province to 2025 and further to 2030. Accordingly, the resolution defines the common goal of creating a favorable, transparent and equitable investment and business environment, edging up competitiveness in order to attract and effectively use resources and contribute to promoting socioeconomic development in the spirit of the resolution of the 16th Provincial Party Congress.

The resolution also sets out main tasks and solutions like strengthening the leadership and direction of Party committees and authorities at all levels; enhancing dynamism, pioneering and determination of leaders of all levels and sectors and raising awareness and responsibility of Party members and public employees in performing their duties; effectively carrying out administrative reform, fostering digital transformation and applying information technology to State management; boosting business support and development; focusing on planning, mobilizing and effectively using resources to create breakthroughs in infrastructure investment; and improving the effectiveness of investment promotion.

According to Kon Tum province’s District and Department Competitiveness Index (DDCI) in 2021, Kon Tum Economic Zone Authority stood second among 12 agencies, scoring 68.71 points. Best performing indicators include informal charges, leadership and legal institutions.

As a companion to businesses and investors, in the coming time, the authority will continue to implement tasks and solutions for better PCI; uphold the spirit of service; and promptly facilitate businesses and investors. The agency will focus resources to invest in completing technical infrastructure and create a clean land fund; speed up administrative reform; work with relevant bodies to reduce the waiting time for investors; receive and promptly deal with all complaints and requests filed by enterprises; and pay attention to building professional, transparent and effective civil servants to improve service quality.

Thank you very much!

By Cong Luan, Vietnam Business Forum