Binh Dinh Province Perfecting Infrastructure to Welcome Investors
13/11/2008

 

In 2005, central Binh Dinh province ranked the twentieth out of 12 provinces and cities about the CPI index, surveyed by the Vietnam Chamber of Commerce and Industry (VCCI). In the two next years, the province’s ranks were respectively the third and forth among total 64 provinces and cities. This showed the province’s determination in attracting investment and creating a sound business environment.  

 

In 2005, central Binh Dinh province ranked the twentieth out of 12 provinces and cities about the CPI index, surveyed by the Vietnam Chamber of Commerce and Industry (VCCI). In the two next years, the province’s ranks were respectively the third and forth among total 64 provinces and cities. This showed the province’s determination in attracting investment and creating a sound business environment.  

Quoc Hung, correspondent of Vietnam Business Forum made an interview with Le Van Tam, Director of Binh Dinh Department of Planning and Investment, about the matter.  

Could you tell us some achievements in investment attraction over the past years?

During the past time, particularly since applying the resolution of the XVII Party Congress, Binh Dinh’s investment situation saw an active growth. In 2007, the province welcomed 12 official development assistance (ODA) projects with the disbursed capital of VND70 billion. The province also licensed 30 foreign-invested projects, valuing US$366 million in total. After the Laws on Investment and Enterprise took effect, the number of private-owned projects has remarkably increased. Over the past two years (from 2006 to the half of 2008), there has had 115 projects, totaling VND9 trillion, including some big investment projects in fields of hydropower, construction of industrial infrastructure, mining, wood processing.  

The operation of investment projects helped to increase the province’s industrial production value on year, from 18.9 per cent in 2006 to 30.2 per cent in 2007 and 15.4 per cent in the first six months of this year. The province saw over 100 firms operating in the export field.

It seems that the speed of investment attraction has not yet reflected the province’s potential and advantages. What are difficulties and challenges facing the sector?

The attraction of investments is in fact facing some challenges, including the factors of natural resources and geography. Binh Dinh is far from the country’s two central cities of Hanoi and Ho Chi Minh City, thus making difficulties for transportation, particularly by air. In addition, the province’s socio-economic infrastructure is still weak. Secondly, the province lacks experiences in managing and earmarking sectors, using land, preparing infrastructure for investment projects. Moreover, the collection and supply of information to serve investment, as well as measures to call for and encourage investors have not been paid an adequate attention. Another reason is attributed to the loose coordination and even unsound competition among localities.

Which measures have been offered to deal with the difficulties?

To attract investments efficiently, it is vital to construct the firm infrastructure system. In fact, the province has invested to build transportation, irrigation, power and water system, post and telecommunication, industrial zones and improve establishments of training, health, tourism services, as well as focus on training a team of professional cadres.

During the past two years, Binh Dinh also spent a large amount of state and provincial budgets on building some works in the Nhon Hoi economic zone (including power and water systems) to serve the investment projects. Regarding airway, there has four Airbus A320 flights per week from the Phu Cat airport to Ho Chi Minh City. On schedule, the Phu Cat will be installed the light system in 2009 to serve night flights.  

For those efforts, foreign and domestic partners highly spoke of the province’s socio-economic infrastructure development. 

We have also built a list of projects to call for investment, as well as actively introduce the province’s investment potentials and opportunities at forums and seminars.

On the base of central policies, the province also issued some policies to encourage foreign and domestic investors to do business in the locality.

List of Projects Calling for Investment in Binh Dinh Province:

1. Investments to develop Nhon Hoi Economic Zone

2. Electric - electronics production and assembly factory

3. Vegetable oil production factory

4. Coconut processing factory

5. Export seafood processing factory

6. Fishery and ship engine projects

7. Seagoing logistics services and export seafood trading projects

8. Export fine-art pottery factory

9. Export footwear production factories

10. Export apparel and textile factories

11. Civil and industrial plastic production factory

12. Dyeing technology and floor stone production

13. Thermal power plants

14. Geothermic power plants

15. Shipyards

16. Steel laminating plants

17. Travel tours between Quy Nhon - Song Cau; De Gi - Tam Quan

18. High-rise apartment blocks

19. Infrastructure systems in industrial zones, industrial complexes

20. Commercial centres in An Nhon, Phu Phong and Bong Son

21. High-rise offices for lease

22. High-quality general hospitals

23. Medical diagnosis centres

24. High-quality training centres

Source: Vietnam Business Forum