22/04/2011
Over the last five years, investment promotion activities in Binh Dinh have achieved many positive outcomes. The efforts in improving investment and business environment have contributed to gaining significant capital for socio-economic development.
Over the last five years, investment promotion activities in Binh Dinh have achieved many positive outcomes. The efforts in improving investment and business environment have contributed to gaining significant capital for socio-economic development.
Effective outcomes
Currently Binh Dinh has 39 FDI projects with total registered capital of USD 616.675 million, in which 32 are with 100% foreign capital and 7 with domestic and foreign capital. Nhon Hoi Economic Zone and Industrial Zones have 10 projects, total capital of USD 504.910 million.
In term of domestic investment, since the implementation of the Investment Law 2005 till now, Binh Dinh has issued Investment Certificates for 332 projects with total registered capital of VND 42,431 billion.
Though domestic investment surpasses foreign investment both in the number of projects and the registered capital, attracting foreign investment is always a priority for Binh Dinh because foreign investors have advantages of capital, management capacity and markets.
In addition to upgrading the infrastructure and planning, administration reform has been prioritized in order to attract investment. The People’s Committee has reorganized the Investment Promotion Centre to boost its professional activities and effectiveness. Based on the national regulations, Binh Dinh has reviewed and issued incentive policies to encourage investors. These include supporting cost for training workers; supporting trade promotion, branding, technical infrastructure in industrial zones/clusters and pollution treatment.
Not proportional with potentials
However, outcomes achieved are not proportional with potentials. Binh Dinh hasn’t got large scale projects, especially projects in industry area to create a driving force for socio-economic growth and economic structure change. FDI projects, mostly of small scale, annually contribute less than 1% GDP and just account 3.6% industrial production value. Some domestic and foreign projects were licensed a few years ago but the implementation is slack due to many reasons, including the investors’ financial ability. Therefore, some investment certificates have been revoked. FDI capital disbursement has been slow and only achieved around UDS 27.31 million in 2010.
Creating a breakthrough in attracting investment
In order to improve the investment promotion outcomes, Binh Dinh needs to identify weaknesses and constraints, develop drastic and timely measures and focus on planning, reforming administrative procedures and selecting investment projects.
With the orientation of attracting investment in the near future, Binh Dinh targets on projects in areas boosting the provincial potentials such as agricultural, forest and fishery processing, minerals, construction material production. Priorities are given on attracting truly eligible investors, large scale industrial projects which can enhance many industries to develop. Projects with risks of causing environmental pollution need to be seriously considered and reviewed.
Binh Dinh certainly needs a lot of support of the Central level, especially capital for infrastructure, in which traffic infrastructure and infrastructure for economic zone and industrial zones are top priorities.
Therefore, Binh Dinh has requested the Government to direct the Ministry of Transport and Communication to start the dredging process for vessel traffic from Quy Nhon Sea Port to Nhon Hoi Economic Zone, and Vietnam National Shipping Lines to implement the Nhon Hoi Port project; to approve for the establishment of the project ‘coastal road way in Binh Dinh province to link the coastal road way with Quang Ngai and Phu Yen provinces; and to start the project ‘National Highway 19 of Quy Nhon (Binh Dinh) – Pleiku (Gia Lai)’ soon. For airlines, Binh Dinh PC has requested to increase the number of flights Ho Chi Minh- Quy Nhon to 14 flights/week (two flights/day).