The Kon Tum Party Committee has identified that improving the business investment environment and enhancing competitiveness are the key drivers to increase investment outcomes, raise growth quality, and accomplish socioeconomic development goals. As a result, these tasks have been given top priority and have initially achieved very optimistic results.
VCCI President Pham Tan Cong at a working session with the Kon Tum province delegation
Stronger reform, better business support
According to a report by the Vietnam Chamber of Commerce and Industry (VCCI), Kon Tum province’s Provincial Competitiveness Index (PCI) 2022 scored 64.89 points, ranking 37th out of 63 provinces and cities nationwide, and 2nd in the Central Highlands after only Lam Dong province. This was the highest standing of the province since the gauge was launched in 2006. Notably, Kon Tum’s PCI ranking advanced sharply after only one year, with a 24-place leap over 2021. Besides, eight out of 10 PCI component indices gained higher ground, particularly the business support index (ranking 10th out of 63 provinces and cities), the fair competition index (20th), the informal charge index (21st), and the transparency index (30th).
The positive progress was attributed to the effort of all sectors and levels of government, as well as the solidarity, determination, endeavor, and consensus of the political system, business community, and people. In particular, the Provincial Party Committee and the Provincial People’s Committee have always been close and decisive in leadership and direction to fully unlock all strengths, clear bottlenecks, strongly upgrade the business investment environment, and impressively raise Kon Tum province’s PCI 2022.
On May 16, 2022, the 16th Provincial Party Committee issued Resolution 11-NQ/TU on improving the investment environment, enhancing competitiveness, and boosting investment attraction in Kon Tum province until 2025 and beyond to 2030. The resolution aims to create a favorable, transparent, equal, and competitive investment and business climate to attract as much investment capital as possible and effectively use social resources to bolster local socio-economic development.
In line with Resolution 11, the Kon Tum Provincial People’s Committee has directed departments, agencies, and localities to aggressively carry out several PCI improvement solutions to enhance competitiveness and entice more investors. These solutions include Program 2359/CTr-UBND dated July 22, 2022; Decision 26/QD-UBND dated January 20, 2022; and Plan 1906/KH-UBND dated June 20, 2022. The committee has also established a steering board in charge of PCI improvement; accelerated business development and investment attraction; enticed strategic investors with large-scale projects; set up inspection teams to conduct irregular probes into agencies and units to promptly detect, correct, and address limitations and weaknesses; directed, reviewed, and revised the list of investment projects seeking investors in Kon Tum province from 2021-2025.
The committee tasked the Department of Planning and Investment with collecting and synthesizing opinions, feedback, and recommendations from local companies and investors. The department then reported and advised the committee to assign competent agencies to settle them according to their jurisdiction or advise it on solutions to difficulties faced by companies and investors. Additionally, the committee organized several meetings and conferences to discuss ways to remove obstacles relating to land, investment, planning, and public property. It also actively contacted, called, and worked with investors through biannual business dialogues and monthly business talk shows to promptly grasp, share, and solve their problems.
Mr. Le Cong Dinh, Director of the Kon Tum Investment Promotion and Startup Support Center, stated that since 2022, the center has advised the Provincial People’s Committee to host the Kon Tum Business Dialogue twice a year. The meeting aims to find solutions to existing hardships faced by some industries and fields. The center also organizes six monthly business talk shows to create an open, friendly atmosphere between the government of Kon Tum province and the business community and entrepreneurs. This helps promptly grasp the problems of enterprises and investors and recommend solutions to them. Accordingly, as of now, a total of 136 issues have been recorded and resolved. Furthermore, 126 tough issues from the Kon Tum Business Association and the Kon Tum Young Entrepreneurs Association have been resolved. In 2023, as many as 52 business issues have been recorded, out of which 43 have been settled.
To further enhance the business investment environment and sharpen local competitiveness, the center actively counseled the Provincial People’s Committee to work with VCCI to propose the content of cooperation between Kon Tum province and VCCI. This collaboration aims to help the province launch appropriate and effective solutions for a better business investment environment and higher PCI standing. Moreover, the center advised the committee to invite VCCI representatives to work directly with the province on advice and guidance for the implementation of activities for a better business investment environment, stronger competitiveness, and more business development support in the province.
To date, Kon Tum province’s efforts for a better business investment environment and business development support have paid off. The province has attracted 27 investment projects with a total registered capital of about VND2,789.6 billion. It has also licensed 476 new companies with a combined registered capital of VND7,831 billion since 2022. The Kon Tum Investment Promotion and Startup Support Center has guided domestic and foreign enterprises and investors to seek support and assistance. Some giant firms such as Sun Group, Hung Nhon Group, Hung Thinh Group, Him Lam Joint Stock Company, Nutifood, and Infrastructure Investment and Transport Joint Stock Company (Intracom) have come to survey and explore investment opportunities in the province.
The first provincial business dialogue conference in 2023
Determined for higher PCI ranking in 2023
Recognizing that improving the PCI Index is a key and urgent task, a driving force to attract more external investment resources, enhance growth quality, and realize socioeconomic development goals, Kon Tum province will continue to implement Resolution 11. The province aims to further upgrade the business investment environment and raise the PCI Index.
First, the Provincial People’s Committee will assign the Department of Planning and Investment to coordinate with other agencies and localities. The goal is to review, assess, and analyze Kon Tum province’s PCI performance in 2022. This will help put forth stronger solutions to maintain and raise this index in 2023 and beyond. The committee will also strengthen the responsibility and accountability of agencies assigned to track and impact PCI indicators. It will focus on reviewing, resolving or advising the Provincial People’s Committee to report to competent authorities. This is to consider abolition, reduction or simplification of regulations that hinder investment, production, and business activities. The committee will deal with unclear, overlapping, and conflicting regulations on investment, land, construction, natural resources - environment, and other fields. This is to ensure consistency, transparency, easy lookup, coherence and accessibility. The committee will also review business-related administrative procedures for further simplification. This is to effectively apply digital technology and deploy online public services.
Kon Tum province will focus on selective investment attraction and cooperation, taking quality, efficiency, technology, and environmental protection as the main evaluation criteria. The province aims to woo potential investors to invest in infrastructure construction in industrial zones. It will diversify investment promotion forms, strengthen capacity, and reform domestic investment promotion. Kon Tum will also strengthen connections and cooperation with foreign enterprises and localities, especially South Korea, Japan, France, Australia, and other countries. This is to increase the effect of investment flows, especially FDI.
Despite numerous difficulties, the political system of Kon Tum province is resolved to make every effort to establish stronger imprints in improving the business investment environment and the PCI Index. The immediate priority is to maintain the PCI result in 2022 and strive for a higher standing in 2023. The goal is to reach the range of the Top 30-35 provinces and cities nationwide.
By Cong Luan, Vietnam Business Forum