Long An Province's Business Environment in the Eyes of Investors

 

The first phase of the Duc Hoa Industrial Zone 1 covers 70ha, which has been fully occupied by 42 investment projects. This is the result of our efforts from the construction of infrastructure, water supply and drainage system, power network and full supporting services. The industrial park applies a “three-No” policy in attracting investment, namely No fee for investment instruction and construction design, No fee for land use right transfer and No tax for equipment import.At present, we are carrying out the second investment phase, which consists of 204 ha of land. So far, many companies have registered for land leasing in the expanded area. We used to face difficulties in land compensation and site clearance; however, things now get better. We are making the best preparations for investors in Duc Hoa Industrial Zone 1.

 

 

Since we invested in Long An Province, we have not met many hindrances. In general, the relation between the company and relevant organs is very good and this facilitates our business operation. The local policies and taxes are suitable. However, the power supply is unstable but its cost remains high, causing problems to our production. In 2005, the profit was humble and it seemed better since early 2006. In the coming years, the development policy of the company is to expand the textile mill but now the soaring prices of gasoline will add more costs.

 

I am very impressed with the local workforce’s good health, diligence and studiousness. Our company always has higher year-on-year increase. 

 

Our prevailing hardship is the local transport system, especially the road from our company to National Road 1A, which remains incomplete after four years of building. The water for livelihood and production still contains high rate of iron and alum. Besides, our company is now very interested in expanding our business to offshore fishing to secure better input materials. We hope the Vietnamese government will allow foreign investors to take part in this field.

 

In spite of beginning business only seven months ago, our products have been widely accepted by farmers thanks to the good quality, design and prices. However, the inadequacy of main materials for the animal feed production like maize and soybean raised product costs to higher levels. Thus, the Government should outline material zones in combination with supports of capital, stocks and techniques to expand areas and output. It should also develop husbandry.

 

The 4 Oranges Co. Ltd invested US$14.5 million in a 7-ha paint factory in Duc Hoa Industrial Zone 1 and this facility began production since 2004.

 

The investment environment in Long An is very good and favourable for investors. In the long run, I think the Vietnamese government should build up clear and transparent legal documents (like Investment Law and Corporate Law). The good legal basis stimulates operations of businesses and investors, especially prior to Vietnam’s admission to the WTO. On the other hand, Vietnam needs policies to stably develop infrastructure system soon, especially in transport system to facilitate trading and commodity transportation, and reduce derivative costs.

 

VINA - PSMC Prescast Concrete Joint Venture Co., a joint venture between Vietnam’s Construction and Material Trading Joint Stock Company and Japan’s P.S. Mitsubishi Co., Ltd, was set up in July 2004. With a workforce of experienced domestic and foreign engineers and workers and with an advanced technology, the product quality is always in the best condition. With high durability, reasonable price and easy handling, our supplies failed to meet the market demand. Therefore, the company plans to expand production facility to receive more orders. But, our hardest difficulty is the shortage of clean water sources for production and unfavourable transport system.

 

In recent years, the mechanical industry of Long An Province grows strongly. The small mechanical bases have mushroomed throughout the province to meet the repairing and related services for locals. They can manufacture simple machines like water pumps, rice harvesters and centrifugal mortars for agricultural production.

Seeing huge potential, Kim Hung Co. has invested in mechanical cast-iron parts production factory. Our products have been highly appreciated by users for their quality, design, durability and precision. In the coming time, we will invest in upgrading and renewing technologies to improve the quality and diversify products to satisfy all requirements of customers. We hope to receive business cooperation from all related enterprises to expand production.