3:39:54 PM | 8/6/2006
The Government allowed the use of Cam Ranh seaport for economic purposes and on the establishment of the Van Phong economic zone. A road linking Khanh Hoa with Lam Dong will be completed in 2006 and a road to the Hon Ba tourist site (the international tourist site of Alexandre Yersin was completed. These are favourable conditions for opportunities in attracting foreign-direct investment (FDI).
In 2005: Stabilisation of activities and increasing of revenues
Up to date, Khanh Hoa province has had 56 FDI projects licensed with a total registered capital of US$382.8 million. Of the figure, 35 enterprises have become operational with a total realised capital of over US$293.122 million. Most of the enterprises have stabilised their production activities and had their revenues increasing. The Hyundai-Vinashin Company, for example, gained total revenues of US$110 million, of which US$100 million came from export. San Miguel Vietnam has increased its capacity to 50 million litres per annum.
Enterprises operating in tourism, seafood processing and industrial production have gained good business results. The Nha Trang Rowing Joint venture Company has an investment of US$300,000 earned US$709,000 in the first six months of 2005. The Vietnam Rainbow Company, 100 per cent UK owned, specialising in diving, has its initial investment of US$500,000 and was licensed in early 2005, but has made significant contributions to attracting visitors to stay in Nha Trang for longer time.
Enterprises in the seafood processing industry, such as Anh Dao and 100 per cent Korean-owned Vina-BK, specialising in processing anchovy for export, have gained good business results. The Nha Trang Pearl Company has shifted to the farming of caged fish and been successful in exporting its products to Taiwan. The Saigon Pearl Company, 100 per cent Japanese-owned, has exported products to Japan and expanded its branches in Phu Yen, and shops in Nha Trang, including a shop at the Sunrise Hotel. The Norwegian-owned Marine Farm Asa Vietnam Company has gained a success in caged fish raising and built fry production farms and Australian-owned company of Emu has been successful in farming and processing mangoes for export.
In industrial production, 20 enterprises have been successful. These include subcontractors for Hyundai-Vinashin such as Plus Vietnam, Dawin-Vina and Hanmi-Tech, which are owned by the Republic of Korea. The Filipino-owned Rapexco Company, specialising in making handicrafts of rattan and bamboo for export, has been successful, generating jobs for over 4,500 people and gaining annual revenues of over US$17million. The Sodex Toseco Joint-venture Company, specialising in manufacturing sport nets, Sambo-ISE Garment Joint-venture Company and the Cat Phu Paper Pulp Processing Company, have operated steadily.
Box: Business activities of FDI enterprises in Khanh Hoa
|
|
2005
|
Up against 2004
|
|
Revenues
|
US$215,686,505
|
76.73
|
|
Export
|
US$181,070,661
|
58.48
|
|
Import
|
US$59,080,489
|
62.73
|
|
Budget contribution
|
US$9,366,318
|
Down by 34.08
|
|
Workers
|
18,737 people
|
Up by 800 people
|
The number of FDI projects in Khanh Hoa remains modest and their implementation is not always successful, but it is impossible to deny positive impacts of the investment capital source. In terms of jobs, the Hyundai-Vinashin Shipyard and its subcontractors alone generate jobs for over 7,000 people, and the Rapexco Company, over 5,000 people. Having worked for FDI enterprises, Vietnamese workers have improved their knowledge and skills. On the other hand, FDI enterprises have contributed to increasing the province’s export turnover and produced positive impacts on the local economy.
Renewing FDI attraction
In five years, from 2006 to 2010, Khanh Hoa will strive to mobilise a total investment capital of VND 31,000 billion, equal to over 35 per cent of its GDP. Of the figure, 30 per cent will come from FDI. To that end, the province will uniquely implement its policies on attracting capital, technology and resources in various forms. Accordingly, Khanh Hoa will focus on attracting FDI to its established industrial parks, encouraging investors to develop projects in export making, processing, hi-tech, new material, electronic and information technology, socio-economic infrastructure development and industries with great labour and natural resources potential. The province will focus on attracting capital from major groups in the world and from those countries which have capital, market and hi-tech potential, such as the US, Japan and Western Europe.
Nguyen Xuan Long, director of the Khanh Hoa Department of Planning and Investment, said that the province would create an attractive investment environment by developing planned economic regions such as the Van Phong economic zone, Nha Trang city and the Cam Ranh seaport. The province will review ineffective projects, prioritising investors of higher potential. In investment promotion, Khanh Hoa will promote its co-operation with localities nearby and major cities, such as Hanoi and Ho Chi Minh City. In terms of administrative reform, the province has provided guidelines on project evaluation and licence granting. Therefore, the province will create more favourable conditions for investors in the pre-investment and post-investment periods.
Followings are ideas of investors in Khanh Hoa province:
At present, a lot of domestic and foreign-led projects are operating successfully in KhanhHoaProvince. They have contributed to the development of the province. Reporters of the Vietnam Business Forum had exchange talks with investors about investment environment in Khanh Hoa.
Mr Peter Michael Vidotto – General Director of Sailing Club Nha Trang:
Nha Trang is a good place to invest in and an active, attractive and easy investment environment. Our location is ideal and our company is operating very successfully, attracting and serving more and more international travellers.
In tourism, the Provincial People’s Committee and the Department of Planning and Investment have supported us a lot. We have been here for 12 years. In initial years, we only served foreigners but now there are many Vietnamese customers. The atmosphere here is more and more friendly and integrated. The Sailing Club only has a 2,500 square metre campus, a bar and two international restaurants. The number of customers has increased some 40 per cent since the beginning of 2006. We have introduced new swimming and diving services and on-sea activities like zesky, water skiing and surfing. Every month, when the moon is full, we organise a special music show at beach to serve our customers. Our successes come from harmonious designs, premium service quality and whole-hearted attentions of our staff. In addition, our global advertisement programmes are also an important factor of success for an international house with various dishes, safety with a professional security force and fantastic music.
Apart from Sailing Club in Nha Trang, Khanh Hoa, we also have a 1-ha resort in Mui Ne, Phan Thiet City, Binh Phuan Province. This larger facility with rest houses, bars and recreation services will provide a wider range of services for visitors. With the successes of our current projects, we want to expand our investment into a similar project Bai Dai Area in Cam Ranh City.
Mr Vuong Vinh Hiep – General Director and Chairman of Long Sinh Co. Ltd
We were one of the first investors in Suoi Dau Industrial Park. Hence, the development of our company goes in line with this industrial park. In spite of encountering several obstacles in constructing factories and doing businesses, we overcame all, partially thanks to concerns and support from Industrial Park Management Authority and local authorities. To date, every thing is on the right track. Therefore, we have cooperated with two other investors to expand production here.
However, our company as well as other enterprises are facing hardships in asking for labour certificates for our needed foreign experts and on-demand production certificates, which enable us to manufacture products on demand for customers. For example, our business licence reads “production of aquatic products” but does not specify what are allowed to make and if we want manufacture any products, we must have production license for those items. However, the provision of these papers is troublesome and sometimes has negative impacts on our contracts.
The potential of Khanh Hoa in general and Cam Ranh in particular is immense. Seaports, airports, railways and national roads should be developed to boost the economy but if they are not brought into full play, potential is just potential. If seaports and airports are developed into national and international linkages, enterprises can reduce transport bills.
Mr Vadim Kuznetsov - Investors’ Representative, Ursa Major Company (Sudazi, Khanh Hoa Province)
Our company is so far the first and unique company of Gibraltar to invest in Suoi Dau Industrial Park, Khanh Hoa Province. Over the last 5 years, I have seen lots of changes at this park. The factory spaces are being filled one after the other, and the infrastructure company has to proceed with the second phase of development.
Honestly speaking, the investment conditions here at the moment are less favourable than highly developed triangles as Ho Chi Minh - Dong Nai - Dinh Duong or Ha Noi - Hai Phong - Quang Ninh, but in the near future when there is the container terminal at Van Phong Bay, Cam Ranh Airport becomes an international airport, Khanh Hoa Province is on the competitive edge with those above areas. My conjectures are based on the following:
1. Khanh Hoa is endowed with nature. There are wonderful beaches and world-class bays for seaports. Actually, the climate here is ideal for tourism, fishing and agriculture.
2. Khanh Hoa is a source of supply of raw materials such as sand, stones, fish and agricultural produces.
3. Labour in Khanh Hoa is still abundant and easily accessible. Furthermore, the level of labour is highly trained.
4. With the container terminal, the freight will be much more competitive compared with the current level we have to tranship to Ho Chi Minh City so far.
5. With future Cam Ranh international airport, which facilitates more tourists in (which brings in more profits for the tourism) and cargo out (which brings in more hard currency for the trade industry)
In all, we are very happy to invest at Khanh Hoa province. We are more delighted to invest at Bai Dai Beach (Cam Ranh Town), but this area had been reserved for local investors only. It is open now with foreign investors, but all the land had been allotted, and nothing has moved in the last few years.
Khanh Hoa province has gained a lot of strong growth, but I think it could be much better if there is more effort from the government and businesses.
Mr Bui Huu Si – Director of Nha Trang Shipbuilding Industry Co.:
Certainly, the shipbuilding industry is a potential and advantage of Khanh Hoa Province. Hence, when the Vietnam Shipbuilding Industry Corp. (Vinashin) asked for the construction of a shipyard here, the local government wholeheartedly supported us. They stood side by side us to carry out the government assigned tasks. All procedures and difficulties are resolved swiftly and easily. The problem here is how to make satisfactory land compensations, appropriate resettlement and job creation for the people.
Our shipyard is operating quite well but it will be upgraded to build ships of 5,000-6,000 tonnes and container vessels of 250 TEUs. The company is leasing land to a Japanese firm to build composite ships, and in a long term, and we will set up a joint venture. In addition, we are carrying out a shipbuilding project in Cam Ranh, which will be completed by 2007. With a US$300-million, investment capital, including US$40 million in the initial stage, the shipyard will make ships of 30,000 tonnes for domestic and international markets. This is a key project in Cam Ranh – one of three focal economic zones of the province in the coming time.
Vietnamese
