New Opportunities for Investors in Kien Giang Province

4:59:53 PM | 24/4/2007

Endowed with natural advantages, Kien Giang is able to strongly and comprehensively develop its economy in industry, fisheries and tourism. To maintain growth in 2007 and in the following years, the province will continue investing and developing its economy with various effective measures, including the attraction of domestic and foreign investment capital.
Kien Giang's infrastructure has developed considerably, especially the traffic system. All roads to regional provinces are upgraded, and the Trans-Asia Road in Kien Giang will create more new business exchanges. In the coming time, the Government will prioritise the investment and construction of several projects going through or near Kien Giang, like upgrading five national roads in Kien Giang and the Trans-Asia Road; dredging and widening the waterway system from Ho Chi Minh City to Kien Luong, and upgrading, expanding and building Phu Quoc and Rach Gia Airports into international airports. With a geographic location favourable for opening the economy, featuring seaports, airports and short distances to other ASEAN countries, Kien Giang is confident of strong economic growth in Vietnam in the near future.
Service and tourism investment and development: With favourable traffic conditions, scenic spots and historical relics, Kien Giang will concentrate on promoting tourism and service activities aiming to make tourism a spearhead economic sector of the province, and generate momentum to spread to other economic fields like trade. The province is rezoning its tourist sites, especially building Phu Quoc Island into a high-grade ecological tourist site with modern and diversified recreational services, building tourist site infrastructure like roads, hotels and restaurants, and developing tourism in combination with promoting historical and traditional identities.
Agriculture and aquaculture development: The agricultural and fishery growth rate will be 5-6 per cent in 2006-2010. Agriculture remains the major production sector of the province; hence, the province will focus on comprehensive agriculture development. One of the top concerns of the province is not to encourage an export goods structure shift, but build cultivation areas for high quality rice (100,000 ha), sugarcane (6,000 ha), pineapple (10,000 ha) and shrimp rearing (12,000 ha) for the export processing industry. The province encourages all economic sectors to invest in aquaculture, especially medium and large scale projects.
Industrial development: The province continues to prioritize the development of industries in which the province holds material and resource advantages, like building materials, agricultural goods and aquatic product processing. On the other hand, the province is gradually developing the clean industrial sector. The annual industrial growth is forecast at 16-17 per cent on average, and the industrial sector will contribute 4.6 per cent to overall economic development of the whole country. The province is promoting the expansion of Tac Cau Industrial Zone in the second phase, and setup and construction of Thanh Loc to call for more investment. From 2006 to 2010, Kien Giang will finish preparatory steps for investment in Dong Ho (Ha Tien Town) for farming, forestry, aquatic, industrial and consumer goods production, and developing 100-ha U Minh Industrial Park for processing agricultural, forestry and aquatic products, and for producing agriculture and forestry materials.
The province continues renovating existing cement plants and improving quality to satisfy environment protection requirements. Aquatic product processing factories equipped with modern technologies in Tac Cau and other areas will reach an annual processing capacity of 68,000 tonnes. Kien Giang also invests in building and renovating equipment and technology for rice processing units. It is expanding fish feed processing plants and encouraging all economic sectors to build factories manufacturing feed for shrimp rearing and husbandry. The province is improving mechanical industry capacity, building and repairing ships for fisheries activities, transportation and agriculture. Kien Giang also sets up environment-friendly industries like garments, electronics, consumer goods and handicraft production.
In addition, Kien Giang invests in coastal urban zone infrastructure and expands Rach Gia City by 300 ha, builds urban zones in Phu Quoc island district and the 96-ha urban zone in Ha Tien Town, and 320-ha urban area in U Minh. The commercial centres to be built from now until 2010 include Rach Soi commercial centre, Ha Tien Town commercial centre, Duong Dong district commercial centre (Phu Quoc District), Hon Dat district commercial centre, Go Quao district commercial centre, Ba Hon commercial centre (Kien Luong District) and An Minh district commercial centre.
Investment incentive policy: Kien Giang provides seven rates of land rents, ranging from three-year fee to project lifetime fee. Further, the rental is equal to half of the land lease payment frame provided by the higher government. In corporate income tax, Kien Giang applies the preferential rates set in the Investment Law of Vietnam: preferential corporate income tax of 10 per cent for 15 years, and 15 per cent for 12 years. In addition, enterprises will be strongly supported by the local government.
Last but not least, competent organisations are always ready to receive and instruct domestic and international investors to explore investment opportunities in Kien Giang in the most enthusiastic, friendly and open manner.
Mr Thai Dac Liet
Director of Kien Giang Department of Planning and Investment