Inside Honda factory in Vinh Phuc province (Photo: VNA) VinhPhuc (VNA) – Vinh Phuc has reaped success in attracting foreigndirect investment (FDI) for many years, and the source of FDI capital hasbecome a driver of economic growth in the province.
Investorssaid they chose Vinh Phuc for investment based on many factors, one of which isthe development of industrial parks and clusters, completed with technicalinfrastructure such as electricity and water supply systems.
Theprovince has 18 industrial parks approved by the Prime Minister, with totalarea of more than 5,700 hectares. There are also 21 industrial clusterscovering a combined 500 hectares of land. Eleven investors have poured moneyinto infrastructure at industrial parks, and so far eight industrial parks havebeen put into operation.
Allbusinesses are given equal access to land, and the province also helpsinvestors with land clearance and the streamlining of administrativeprocedures.
Itis also noteworthy that Vinh Phuc has sent many delegations abroad to promotethe province’s advantages and incentives to potential foreign investors.
Accordingto Nguyen Van Do, Director of the provincial Department of Planning andInvestment, Vinh Phuc has been able to attract FDI into different industries,with many investors building large-scale production facilities, creating manyjobs for locals and contributing significantly to the province’s budget, suchas Toyota, Honda, Daewoo Bus, Piaggio and Young Poong, to name just a few.
Thenumber of FDI projects in Vinh Phuc has increased quickly over the past decade,from only eight in 1998 to 402 as of the end of September 2020, with totalregistered capital surpassing 5.7 billion USD.
Thepresence of FDI enterprises has helped Vinh Phuc maintain a high economicgrowth rate, averaging 7.1 percent a year during the period from 2015 to 2020.The local productivity has also improved greatly, at an average 8.3 percent ayear.
Localofficials said besides pumping capital into the economy, FDI enterprises have alsotransferred expertise and skills in business administration to local managerialstaff members, as well as modern technology in production, and industrialworking style to local workers.
Inaddition, FDI enterprises have contributed remarkably to the State budgetrevenues in Vinh Phuc. While budget collection in the province during 2006-2010totalled 42.2 trillion VND, the revenue for the State budget during 2015-2020averaged 30 trillion VND a year.
Thoseoperating in the assembling and trading of motorbikes and automobiles have accountedfor around 80 percent of the FDI sector’s contribution to the State budget.
Atypical example of such enterprises is the Toyota Vietnam. In 2019, a year withmany difficulties for the automobile market, the company turned out 50,114vehicles and sold a record 79,326 vehicles, up 22 percent from the previousyear, and paid nearly 1.2 billion USD into the State coffer. In the first sixmonths of 2020, despite the COVID-19 pandemic, the company produced 16,905vehicles and sold 25,853 vehicles, contributing nearly 350 million USD to theState budget.
Inthe time ahead, the provincial administration plans to intensify investmentpromotion activities, by holding conferences to introduce its potential, investmentincentives and policies to both domestic and foreign investors.
Atthe same time, the provincial authorities will improve planning work, makepublic approved development plans along with detailed action plans to implementthem, and continue with administrative procedure reform towards creating atransparent, healthy and fair play ground for all investors.
VinhPhuc will hold regular dialogues with the local business community to getupdates on their operations and problems so as to timely remove obstacles forthem. To further assist local enterprises, the provincial authorities willinvest in housing development for workers, accelerate land clearance work andrevise management mechanisms and policies for industrial parks.
Theprovince is acting in accordance with the motto “All investors in Vinh Phuc arecitizens of Vinh Phuc,” and “Businesses’ success is the success and pride ofVinh Phuc.”/.
VNA
