Binh Thuan: An Ideal Destination for Investors

Binh Thuan has a very important geographical location and is the centre of three economic regions: Central Highlands, Central Coastal and Southeastern region. Major national roads and railways run through the province. With 192km of coastline, Binh Thuan is endowed with sunny beaches, untouched and poetic sand hills and hot mineral water streams among others. The province also stands out with beautiful natural sceneries, famous historical and cultural relics, folk customs and festivals. These are ideal conditions for developing luxury, large and multifunctional resorts and entertainment centres to meet the many different demands of tourists.

 

Binh Thuan has a fishery area of 52,000 square metres, which generates some 150,000 tons of seafood like crabs, shrimps, fish, oysters and seaweed a year. The 32-square kilometre Phu Quy Island, 100km off Phan Thiet City, is being developed into an open economic zone for exploiting and processing seafood, providing maritime, oil-gas services and others. The Nam Can Phan Thiet Seafood Processing Industrial Zone is being invested to attract fish processing projects.

 

 Binh Thuan has a stable industrial growth with 15 per cent a year. Exporting processing sector is on the sharp rise. Processed aquatic products, apparel, construction materials, mineral water and fine arts handicraft have seen strong growth. Binh Thuan has vast reserves of natural resources, such as glass, granite stones, bentonite clays, mineral water, mineral sand and industrial salt. Oil and gas has been discovered and there are large reserves here which hass attracted special concerns from the Central Government as well as investors. With an arable area of over 220,000 ha, Binh Thuan has diversified agricultural products. The well-known green dragon fruit output reaches some 120,000 tons, 15-20 per cent of which is for export.

 

A vast volume of domestic and foreign investment projects has made Binh Thuan prosperous. However, existing investment projects are unsatisfactory in comparison with Binh Thuan’s potentials, especially in its maritime economy and tourism. The main reasons are attributed to sluggish and asynchronous planning works for several industries, weak promotional activities, and poor information for investment incentive and orientation policies. Besides, Binh Thuan lacks infrastructure system like airports and seaports.

 

In the next five years, Binh Thuan will call for investment in six prioritised sectors. In fisheries, investment will be called for in composite-shell shipbuilding, seafood processing for export and aquaculture. In agro-forestry, green dragon fruit processing, rubber production, grape cultivation for the wine industry and cattle husbandry will be prioritised. In industry, Binh Thuan hopes to attract investment for production of packages, nylon nets, leather and footwear, exported apparels, consumption goods, and the manufacturing of machinery for agro-fishery purposes, building materials and auto parts. In tourism, the province is appealing for investment in building resorts, entertainment centres, eco-tourism, commercial centres and wholesale markets. In health-education, the investment call will focus on building international hospitals, international schools, and sports and playground complexes. In infrastructure, the restoration of Phan Thiet Airport and construction of industrial parks and oil-gas services will be prioritised.

 

We will: (i) compile documentations to introduce potentials and opportunities, then widely broadcast on mass media, (ii) set up an investment promotion strategy for the 2006-2015 period, (iii) consult the People’s Committee to boost cooperation with Ho Chi Minh City and Ba Ria-Vung Tau Province, (iv) open investment call conferences, forums and fairs in Ho Chi Minh City and in other countries, (v) and organise exchanges with investors to enhance investment efficiency.

As of late 2005, Binh Thuan had 695 licensed projects, including 274 operational ones. Of the operational projects, 81 are engaged in tourism, 60 industrial-service projects, 26 agro-forestry projects, 42 aquaculture projects and 65 are oil-gas projects. The average investment capital for a project jumped to VND19.9 billion in the 2001-to date period from VND9.9 billion in the period before 2000.

A year and a half after I arrived here, the local government had completed a road linking Phan Thiet with Tan Thanh and Mui Ke Ga. The electrical grid and telephone line reached the places we needed. I think this provided great support for us to carry out and operate our projects. As for investment incentives, we have a seven-year free land lease tax. If our project is profitable, we have corporate income tax exemption in the first two years and 50-per cent discount in the next two years. In addition, we regularly receive support from the authorities.

I admire the local government for their long-term vision. The infrastructure is very good. For example, the smooth paved road with beautiful pavements linking Phan Thiet City and Hon Rom. Visitors are moved by the friendly surroundings. The government also make us feel secure in our investment. The streamlined administrative procedure is evidence of the good management system here. Further, the government pays more attention to the harmony of the surroundings and the economy. Many green trees have been planted to add more beauty to the maritime tourism industry.

 

But we suggest that Binh Thuan government build airports to receive VIP tourists and to shorten the travelling time. In addition, Binh Thuan should also set up bus routes linking Phan Thiet City with major destinations in the province, especially making Mui Ne more attractive. Travelling by bus make tourists feel more secure and saves them travel costs.

 

However, one difficulty for foreign investors is that small projects need a Vietnamese counterpart to undersign us to buy land, lease land and take responsibilities. Some people like me wanted to set up additional small projects like restaurants and bars but they cannot establish businesses themselves. If this difficulty is resolved, Binh Thuan will have a vast number of small projects. The potential on this land remains huge. The Government should have plans to shorten travelling time from Phan Thiet to Ho Chi Minh City by 2-2.5 hours, which is important for the development of Mui Ne-Phan Thiet zones.

 

Since we arrived here, we have received enthusiastic assistance from the Binh Thuan Industrial Zone Authority, ranging from consultancies, information provisions to legal procedure support. During the implementation of our project, if we had any difficulties in policies, labour laws, fireproof regulations and environment policies, they always helped us wholeheartedly. They also provided new related regulations and information for us in a timely manner.