Located inside the key economic region of Central Vietnam, Binh Dinh is becoming a dynamic economic centre attracting local and foreign investors. Vietnam Business Forum reporter interviewed Chairman Nguyen Van Thien of Binh Dinh People’s Committee on its socio-economic development and investment attraction in recent years.

Could you tell us the socio-economic achievements of the province in recent years?

In recent years, especially in implementation of the17th Binh Dinh Party Commission Resolution, the province has undergone positive developments. The investment has been diversified with the participation of all economic sectors including bank savings, land rental, government bonds, ODA, programme funds, central government investment, especially local and foreign investments.

The total investment capital in three years (2006-2008) reached VND19,472 billion, up by 25 percent a year, 43.3 percent of GDP and 43.1 percent of five-year plan spending. Several key projects have been completed and started operating, especially in infrastructure, improving economic development and living conditions, increasing industrial value from 18.9 percent in 2006 to 30.2 percent in 2007 with over 100 enterprises involving in export activities.

In addition to central and local government investments, the province also attracted ODA and FDI. In 2007, 12 ODA projects have been implemented with disbursed capital of VND70 billion; together FDI of US$366 million. With Investment Law and Enterprise Law enforced, private enterprises increase significantly with 115 projects worth VND9,000 billion in the period 2006- middle of 2008 including big projects in hydro power, industrial zone infrastructure, mining and wood processing.

What are the driving forces behind those achievements?

Far from two key economic regions North and South of Vietnam and with low-based agriculture and fisheries; however, Binh Dinh has focused on infrastructure projects, the foundation of socio-economic development, attracting local and central government investments, ODA and FDI in developing communication and transport, power and water supply, as well as environment protection.

The province has also ensured favourable investment environment and developed industrial zones and Nhon Hoi economic zone for investors to maximize their comparative edge in business activities.

In 2007, Binh Dinh ranked 4th in Province Competition Index (PCI) sponsored by VCCI, what will you do in coming years?

In 2005, Binh Dinh ranked 12th among 42 provinces in PCI. Then it was 3rd and 4th among 64 provinces in 2006 and 2007 respectively. The success is due to the development of infrastructure and investment projects. The province has announced lists of investment projects for 2000-2005 and 2006-2010 of local and central government and called for investments at different business forums inside and outside the province.

The province has also accelerated the administrative reform with economic accountability and transparency, one-stop shop for investment license, land renting and project implementation. From October 15, 2007, connected mechanism is ensured for fast and favourable registration of business activities, stamps and taxation.

Have you any message for local and foreign investors?

From our own experiences, we should restrict "virtual" investments and attract reliable and strong investors that can promote supporting industries. We must refrain from ineffective use of land and obsolete technology causing pollution or less competitiveness and slowing down economic growth and integration.

We stand ready to cooperate and facilitate local and foreign investors for mutual benefit.

Source:  Vietnam Business Forum