The southern province of Dong Nai, one of the country’s leading FDI receivers over the past years, is determined to reject infeasible foreign-invested projects for a more sound investment climate.

The province now has 1,080 valid projects valued at more than 20 billion USD after 25 years of FDI attraction.

Although the number of FDI enterprises accounts for one tenth of all businesses operating in the province, foreign-invested firms have contributed 92 percent to the locality’s volume of exports, generating jobs for over 450,000 labourers.

However, the province still has around 10 green-field (FDI) projects that have not been implemented after more than a year since receiving investment licences, said Mai Van Nhon, deputy head of the provincial management board overseeing industrial parks (IPs).

To date, the province has also seen 47 FDI projects valued at more than 100 million USD in total, abandoned by their investors. Most of the projects were in debt to their partners, local commercial banks and labourers, causing negative impacts on the province’s investment environment.

Since the 1990s, it has withdrawn investment permits granted to 186 FDI projects with a total investment capital of nearly 1.3 billion USD.

Nhon said the majority of the projects whose investment licences were revoked by the province are small-scale, adding that this is one of the measures to improve the local investment climate.

He added that the management board has worked with relevant agencies to handle the assets and land rented by 17 FDI projects abandoned, withdrawing their investment permits. The province is also considering other measures to tackle the remaining abandoned FDI projects.

By attracting FDI in a selective manner, the province has drawn a number of projects in high technology and support industry, like Pegasus-Shimamoto Auto Parts Vietnam Co., Ltd, Fuji Vietnam Co., Ltd, and Inoue Rubber Vietnam JSC.

To fulfil this year’s target of attracting around 900 million USD in FDI, Dong Nai promulgated many investment incentives.

Particularly, newly foreign-invested projects and those with additional investment will be exempted from corporate income tax in the first two years of operation and get a 50 percent reduction in the four subsequent years, while the common tax rate imposed on investment projects in local IPs will drop to 22 percent from 25 percent.

In addition, the province has established an office to directly support foreign investors and provided small and medium-sized FDI enterprises with special assistance related to investment licences.

Nhon also affirmed that Dong Nai has completed the construction of infrastructure in IPs and will give priority to high-tech, environmentally friendly projects and those in the fields of services and infrastructure investment.-VNA