Infrastructure Investment Stepped up

18 Aug
Vnre.blgospot.comIn 2010, Tien Giang province plans to double FDI against last year, to some US$80 million. It is not easy after the economic crisis. However, many industrial zones have been built, and are now ready for investors. Mr Le Van Huong, Head of Tien Giang Department of Planning and Investment disclosed to Vietnam Business Forum.
Will you please, give us the evaluation of local and foreign investments in the province in 2009?

In 2009, the total social investment in Tien Giang was VND10,525 billion, 24 percent more than 2008, including:

FDI: three projects with total registered capital of US$11.77 million and two projects with additional investment US$23.8 million.

Local investments: 550 new enterprises established in 2009, 16 percent more than 2008 with average investment capital of VND2.45 billion each.

Due to the impact of the global economic crisis, FDI in 2009 was lower than 2008. FDI decreased in new projects, focused on existing projects and some projects asked for some delay in the implementation.

It was reported that in January 2010, Tien Giang organized an Investment Promotion Conference and announced 117 investment projects with total investment capital of US$10.6 billion. How many projects have been registered and how are their implementations?

At the conference, Tien Giang has introduced 117 projects calling for investments. With coordinated mechanism in investment formalities, Department of Planning and Investment has discussed with 21 enterprises on their investments in the province. Investors paid more attention to the Eastern part of the province with projects on industry, urban areas, services, and infrastructure.

Investment policy and licenses: The province has approved seven investment projects (mainly by BT industrial services, resettlement areas, rural marketplaces, green parks, infrastructure) and granted licenses to four projects with total registered capital of VND2,700 billion, equivalent in number of projects and 3.7 times in capital compared with same period of 2009.

Newly established enterprises: In the first quarter of 2010, 139 new enterprises have been established with total registered capital of VND1,059 billion, 23 percent in enterprises and 4.5 times in registered capital compared with the same period last year. Besides, 54 enterprises have increased additional capital of VND335 billion and 55 enterprises registered additional industries.

FDI: In the first quarter of 2010, one FDI project has been licensed (none in QI of 2009) with registered capital of US$18.2 million and one project with additional investment capital of US$3 million. Disbursed capital in the first quarter was US$1.2 million, 23.5 percent more than the same period last year.

In general, after the conference, more investors have come and surveyed the investment environment, production and business activities in the province.

How is the improvement of investment environment in the province?

In 2009, Tien Giang made great efforts to improve investment environment, increasing provincial competitiveness index (PCI) to 9th position among 63 provinces and cities, 12 rungs higher than that of 2008 and among the best provinces and cities in completing registration formalities for investment license and operation.

To improve investment environment and accelerate administrative reform to facilitate production and business activities, Tien Giang People’s Committee has issued coordination regulations on industrial zones (IZ) management, inter-sector formalities from enterprise establishment to project implementation and operation.

In implementation of Project 30, the province has reviewed all formalities, reducing unnecessary formalities and made public administrative formalities on website of the province.

Information on planning, list of investment projects calling on investments are made public by mass media and website to facilitate the access of investors and businesses. The province has also established business promotion and assistance centres to assist businesses in information on market and administrative formalities such as Industry Promotion Centre, Trade Promotion Centre, Investment and Business Assistance Promotion Centre, Tourism Promotion Centre.

In recent years, especially after Vietnam’s admission to WTO, many foreign investors have come to Vietnam, how does Tien Giang make use of the opportunity?

With Vietnam WTO membership, Tien Giang has implemented the following measures to attract development investments especially FDI:

Developing master planning of socio-economic development to 2020 of the province and districts for regional and international economic integrations. Basing on potentials and advantages, the development orientation is defined for three economic zones.

Eastern districts with great potentialsin sea-based economy, ship-building, sea-port, shipping, aquatic products processing, fishing logistics and tourism, detailed development plan has been made for industry, urban area and services on an area of over 13,000 hectares with industrial zones, urban, commercial and service areas.

Western districts with food production areas, especially biggest fruit orchards agricultural products processing industry and services along Highway 1, the province has developed detailed plan for South East Tan Phuoc industrial region of over 4,000 hectares with industrial zones, vocational schools, urban and service areas. A FDI project has started on development of infrastructure for industrial zones.

Central area is the driving force for socio-economic development of the province with industry, service and human resources development. Presently, it makes biggest contribution to the industrial development of the province, with My Tho IZ (fully occupied), Tan Huong IZ and three industrial centres as Trung An (fully occupied), Tan My (95 percent occupied) and Song Thuan.

Increasing investment in infrastructure for development: especially in transport sector, the province has completed key projects such as Highway 50 (including My Loi and Cho Gao bridges), Highway 60, Ho Chi Minh – My Thuanighway 60, Ho Chi Minh – My Tho express way, upgraded Cho Gao canal. road network linking Tien Giang, Long An, Dong Thap, dredged Tien and Soai Rap rivers to facilitate big ships, built river ports including My Tho port and Nguyen Van Tiep canal.

The province has also upgraded network of roads and bridges with priority for industrial zones and centres and connection with highways. Investment was also made in projects supplying fresh water for the production and people in Eastern districts.

Investment in development of human resources of high quality, meeting the demand of development, especially industrial zones and centres: With State budget, key training establishments will be increased such as Tien Giang university, high training school, secondary training schools in Cai Lay, Go Cong and district training centres. The province will also provide land and facilitate investments in the development of high quality vocational schools. Presently, there have been registered projects as Cao Thang Technical High School, Nguyen Tat Thanh High School.

Improving investment environment: The province has issued policy and regulations to encourage investment and business activities such as coordinated regulations on investment formalities, encouragement and preferential treatment, assistance and compensation for resettlement, upgrading capacity of land management and infrastructure development centre of the province. The province has also focused on upgrading the capacity of staff and offices relating to investment and business activities especially in their dedication and ethics.

Reported by Hoa Binh

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