Unlocking Investment Resources, Promoting Green Growth

Yen Bai province is determined to unlock resources for development, attract investment while protecting the environment and local cultural identity, with the goal of becoming a fairly developed province by 2025 and one of the most developed in the northern midland and mountainous region by 2030, following a “green, harmonious, unique, and happy” approach. Director of the Yen Bai province Department of Planning and Investment, Mr. Doan Huu Phung, speaks with our reporter about these plans.

During a recent visit to Japan, the Yen Bai delegation led by Chairman of the Provincial People's Committee Tran Huy Tuan presented the investment license for the Yen Bai 1 Biomass Power Plant Project to Erex JSC

Yen Bai has become an attractive destination for domestic and foreign investors in recent years. What do you think about investment attraction results in the first six months of 2024 as well as the quality of executed projects?

In the first six months of 2024, the Provincial People's Committee licensed 15 investment projects, including two FDI projects, with a total registered capital of nearly VND3,100 billion and US$125 million (US$132 million) and allowed 12 projects to change their capital base. Currently, the province has 631 projects with VND92,400 billion (US$3.39 billion) and US$280.5 million, largely focused on industry, construction, agriculture, forestry, fisheries, trade, services and tourism.

Some large-scale projects were robustly carried out in the first half of 2024, including US$118 million Yen Bai 1 Biomass Power Plant, VND713 billion BBCIM Yen Bai Port and VND550 billion infrastructure construction in Phu Thinh 3 Industrial Complex.

Effective projects in operation have contributed to growth, economic restructuring, increased production value, new employment and income improvement for workers.

In the past two years, Yen Bai's public investment disbursement rate has always been among the top 15 provinces and cities nationwide. To keep up this performance in the future, what solutions will the Department of Planning and Investment apply?

Yen Bai defines that promoting public investment disbursement is a key task to speed up economic growth. With the high determination of the entire political system, the province's public investment disbursement rate has always been high, standing among the top 15 localities nationwide in recent years.

In 2022, public disbursement reached VND4,825.1 billion, accounting for 87.56% of the assigned plan (VND5,510.6 billion), ranking 12th out of 63 provinces and cities. In 2023, the value was VND5,291billion billion, equal to 88.35% of the target (VND5,989 billion), ranking 15th. In the first half of 2024, Yen Bai had disbursed 28.1% of the planned investment budget or 40.2% of the target assigned by the Prime Minister.

To boost public investment disbursement in 2024 and the following years, the department will continue to advise the Provincial People's Committee to launch the following tasks: Regularly and actively urging, grasping and removing obstacles under its authority; reviewing and promptly revising the capital plan to fund well-executed projects; supplementing revenue sources, reducing expenditure, especially for key projects.

The department will strengthen communications on land policies, purposes, meanings and importance of projects to people whose land is taken. In addition, the agency will step up inspection and supervision; resolutely handle contractors who violate the terms of signed contracts. It will correct, replace contractors or add subcontractors to support contractors who do not meet the capacity, affect the project progress and budget disbursement.

To achieve sustainable development goals, how has the Department of Planning and Investment advised the Provincial Party Committee and the Provincial People's Committee to perfect institutions and policies on green growth and improve the Provincial Green Index (PGI)?

Yen Bai province defines that green and sustainable growth together with environmental resource protection is not only a trend but also a solution to realize the goal of building a "green, harmonious, unique, happy" province. The department has advised the Provincial Party Committee and the Provincial People's Committee to perfect institutions and policies on green growth and sustainable development together with improving the PGI Index as follows. Specifically:

Advising on perfecting the Yen Bai Provincial Planning for the 2021 - 2030 period, with a vision to 2050, approved by the Prime Minister with many specific solutions. This is a basis for integrating green growth into the 5-year and annual socioeconomic development plans.

Integrating PGI improvements into the action plan to implement Resolution 02/NQ-CP of the Government on key tasks and solutions to strengthen the business environment, enhance competitiveness at all levels to draw investment flows, develop new industries and fields, green economy, digital economy and circular economy.

Restructuring investment, with focus on public investment; integrating central and local budget resources and mobilizing private capital sources to invest in infrastructure construction, prioritizing key, important projects with great ripple effects on socioeconomic development. Some projects have supported green growth goals like Red River flood control dike in Gioi Phien commune, Yen Bai City; sustainable forest management and biodiversity project to reduce CO2 emissions (Kfw8); landslide-prevented embankments on Thia and Hut streams; erosion-prevented embankments on the Red River bank; and domestic solid waste incinerators.

The department also advised on the promulgation and enforcement of Directive 29-CT/TU dated October 10, 2022 of the Standing Board of the Provincial Party Committee and Decision 1103/QD-UBND dated June 28, 2023 of the Provincial People's Committee on enhancing local investment attraction, with priority given to attracting high-tech projects that are resource-efficient and environmentally friendly.

The department will continue to counsel the Provincial Party Committee and the Provincial People's Committee to perfect mechanisms and policies, prioritize investment resources for programs and projects on green growth and green investment. The agency will research and promulgate mechanisms and policies to encourage enterprises, organizations, and individuals to carry out green and sustainable production and business activities.

Under the Yen Bai Provincial Planning for the 2021 - 2030 period, with a vision to 2050, which sectors and fields will Yen Bai focus on for attracting investment? How is the province committed to supporting investors?

The Yen Bai Provincial Planning for the 2021-2030 period, with a vision to 2050, was approved by the Prime Minister in Decision 1086/QD-TTg dated September 18, 2023. The planning underlines four growth pillars: Manufacturing and processing, tourism, service economy, and agriculture and forestry. They are key to opening up new opportunities and driving forces to attract investors.

In the coming time, the province will prioritize attracting advanced, modern, resource-saving, environmentally friendly and high-value-added technology projects, focusing on key industries and handicrafts with competitive advantages like processing agricultural and forest products, extracting and developing raw material areas, exploiting and processing minerals, manufacturing high-grade construction materials, mechanics, electronics, supporting industries, clean energy and renewable energy.

Expanding production development along value chains, closely linking industry with agriculture and related service sectors like trade, transportation, logistics, import and export. In the agricultural sector, the province will form centralized agricultural production areas powered by advanced technology.

Siding with businesses and investors, the province will focus on adopting breakthrough solutions like improving planning quality and effects, linking planning with economic restructuring, and innovating the growth model. Yen Bai province will research, promulgate, amend and promptly supplement investment incentive and support policies in advantageous areas and with room for development such as industry, tourism and services.

Additionally, the province will prepare conditions for essential infrastructure systems, site clearance to create clean land funds, raw material areas and human resources.

In particular, with the motto "Government is committed to supporting and serving businesses", the province continues to speed up administrative reform, improve the business environment, and enhance competitiveness; and regularly organizes direct government-business dialogues to promptly grasp and remove obstacles and difficulties, thus unleashing resources and making Yen Bai further develop in a rapid, green and sustainable direction!

Thank you very much!

By Duy Anh, Vietnam Business Forum