Kon Tum - Ideal Destination for Investors

10:33:02 AM | 20/9/2023

In the post-COVID-19 investment shift trend, Kon Tum province has sustained its trust and attractiveness for investors as a destination with a favorable, open, and safe investment environment. This success is owing to the province’s synchronous implementation of many solutions to improve investment attraction, concentrating on investment attraction in strong areas such as high-tech agriculture, pharmaceuticals, urban development and tourism.

Prime Minister Pham Minh Chinh conducts an on-site survey of the proposed construction area of Mang Den airport

Actively supporting investors

In order to improve the business investment environment and create favorable conditions for businesses and investors to come to the province, in 2022 the Department of Planning and Investment of Kon Tum province has advised the Provincial People’s Committee to develop a plan to implement Resolution 11-NQ/TU dated May 16, 2022 of the Provincial Party Committee on improving the investment environment, enhancing provincial competitiveness and enhancing investment attraction in the province until 2025, with a vision to 2030; and implement the Competitiveness Assessment Index of departments, branches and localities of Kon Tum province in 2022.

To accelerate the planning process for the 2021-2030 period and align the vision to 2050 with the effective implementation and management of planning, the Kon Tum Provincial People’s Committee has organized two Business Dialogue Conferences and a monthly Business Coffee Program. These events provide an open and friendly platform for the provincial government and the business community to communicate and address the challenges and opportunities for businesses and investors. The Committee recognizes the importance of investment promotion and strives to improve the attractiveness of investment in the province.

The Center for Investment Promotion and Startup Support of Kon Tum province (Department of Planning and Investment) actively promotes the potential, advantages, and policies of the province to attract investment. The Center disseminates information about the local strengths and opportunities through promotional reports and software that introduce the list of projects seeking investment in the area. The Center also collaborates with the Southern Investment Promotion Center (under the Foreign Investment Agency - Ministry of Planning and Investment) to create a digital map of domestic and foreign investment projects in the province.

The Center regularly interacts with businesses and business households in the province to capture information and promptly remove difficulties and obstacles for them. Every week, it compiles and reports the difficulties and problems of businesses and investors in the area to the Provincial People’s Committee for consideration and direction for resolution. The Center also supports and creates favorable conditions for investors who have been approved by the Provincial People’s Committee to survey and research investments in the province. In the first six months of the year, the Center coordinated with relevant units to guide more than 20 investors to research and survey, explore investment opportunities in the fields of tourism, trade, services, afforestation; advised the Provincial People’s Committee to consider adjusting the list of projects to attract investment in Kon Tum province for the period 2021-2025; and established an anticipated investment promotion program in 2024.

Kon Tum has promulgated timely mechanisms and policies to attract investment along with the active participation of the entire political system from province to grassroots in reforming administrative procedures, improving its business and investment environment in a positive direction. The satisfaction level of investors and businesses with state administrative agencies is increasing. The responsibility of the civil servants performing public duties has also been enhanced, thereby promoting investment promotion activities and mobilizing many capital sources into the area. In 2022, Kon Tum province’s PCI Index ranked 37/63 provinces and cities, up by 24 places compared to 2021; The administrative reform index (PAR INDEX) ranked 55/63 provinces and cities, up by 4 places compared to 2021; The Satisfaction Index with Administrative Services (SIPAS) ranked 42/63 provinces and cities, up by 2 places compared to 2021.

From the beginning of 2022 until now, the province of Kon Tum has attracted 27 investment projects with a total registered capital of about VND2,789.6 billion, and 476 newly registered enterprises with a total registered capital of VND7,831 billion. Many large and potential investors and corporations have surveyed and explored investment opportunities in the province, such as Sun Group, Intracom Company, Vietnam Construction Import-Export Corporation (VINACONEX), FDI International Cooperation and Investment Promotion Joint Venture Company Limited; Alphanam Investment Joint Stock Company, Vi Tri Vang Land; Hung Nhon Group, De Heus Group. To achieve this success, Kon Tum has implemented many solutions in a synchronous, drastic and effective manner, such as promoting administrative reform, focusing on improving the quality and efficiency of investment promotion work, enhancing the quality of administration at all levels of government, accompanying businesses and investors in the process of investing and implementing projects. The most notable of which is that the provincial leaders have directly participated, proactively worked and called on businesses and investors, as well as always accompanied and promptly removed difficulties and obstacles for them in the development process.

Conference on investment, trade, and tourism promotion in 2023 

Continuously increasing the attractiveness of the investment environment

Efforts to improve the business investment environment and enhance competitiveness have brought very positive results to Kon Tum province, creating a good impression on investors. Building on the achievements, in the future, the Department of Planning and Investment of Kon Tum province will advise the Provincial People’s Committee to continue directing the synchronous and drastic implementation of solutions. It is committed to creating the most favorable business and investment environment for current and future businesses and investors coming to Kon Tum. It will focus on strongly improving the investment and business environment and enhancing the province’s competitiveness, strengthen capacity and innovate investment promotion activities, attracting strategic investors to invest in the province. Kon Tum will also build a friendly, convenient public administration, creating an attractive, transparent and open business investment environment for businesses and investors.

To further promote the achieved results, toward a sustainable and stable economic development, exploiting the maximum potential and local competitive advantages to serve the cause of socio-economic development of the province, in the coming years, Kon Tum province will choose 4 pillars to attract investment and promote sustainable growth, including: high-tech agriculture, medicinal herbs, tourism and urban development. From this orientation, the province focuses on attracting investment in factories processing wood, fruit, Ngoc Linh ginseng and other medicinal herbs, and producing industrial animal feed. Kon Tum will attract investment in renewable energy projects, and urban-commercial-service area projects in Kon Tum City and Mang Den town, Kon Plong district.

Recognizing that improving the business investment environment and accompanying and supporting businesses is an important factor contributing to improving the effectiveness of investment attraction, Kon Tum province pledges to continue to accompany and create favorable conditions for big, capable and enthusiastic investors to come to survey and learn about investment opportunities in the area. It will regularly organize meetings and contacts to understand the wishes as well as promptly remove problems and difficulties for investors, pay attention and provide timely information support to businesses and investors through actively implementing digital transformation; publicly and specifically disclose to investors information related to land planning, industrial development planning, land prices, compensation and site clearance mechanisms.

In line with the general goal of increasing the attractiveness of the investment environment, the province prioritizes investment in developing the socio-economic infrastructure system; promotes administrative procedure reform, applies preferential tax and financial mechanisms and policies flexibly; improves the ranking of the business environment competitiveness index, and meets the increasing needs of businesses. At the same time, the province implements the province’s incentive mechanisms and policies for projects using high technology and being environmentally friendly, thereby contributing to a strong opening up and seizing the opportunity to attract investment capital from large corporations.

By Cong Luan, Vietnam Business Forum