Toyota Vietnam's plant in Phuc Yen, Vinh Phuc (Photo: VNA) Hanoi (VNA) – The northern province of Vinh Phuc has been adestination of choice for investors, both domestic and foreign, amid theCOVID-19 pandemic.
Representatives from the province’s Department of Planning and Investmentsaid factors that help draw investors to the locality include the availabilityof clean infrastructure, convenient transport and reasonable land lease prices.
As of the end of June 2020, Vinh Phuc was home to 392 foreign directinvestment (FDI) projects with total registered capital of 5.57 billion USD,according to statistics of the department. The projects were run by investorsfrom 18 countries and territories. The Republic of Korea has the most projectswith 210, followed by Japan, China and Thailand.
Many global groups have made their presence in Vinh Phuc, such asToyota, Honda, Sumitomo from Japan, Piaggio from Italy, De Heus from theNetherlands, Daewoo, Haesung Vina, Partron Vina, Cammsys from the Republic ofKorea, Prime Group from Thailand and Weldex from the US.
The province has also attracted 782 domestic direct investment (DDI)with total investment surpassing 93.7 trillion VND (around 4 billion USD atcurrent exchange rate). Several major Vietnamese corporations have chosen VinhPhuc for their investment, such as FLC, Vingroup, SunGroup, and Viet Duc Steel.
The flow of investment capital, both FDI and DDI, into the province inthe first six months of this year decreased as a consequence of the coronaviruspandemic. Total FDI capital in the period stood at 135.6 million USD,equivalent to only 32.1 percent of the figure in the same period last year. Themoney was poured into 14 new projects and 19 existing ones.
Meanwhile, DDI capital attraction in the period came to 2.67 trillionVND, equivalent to 51.5 percent of the figure in the same period of 2019. Thecapital was pumped into 24 new projects and 9 existing ones.
Officials from the Department of Planning and Investment said theprovincial authorities will continue to push forward with administrativereform, focusing on streamlining administrative procedures to reduce time andcosts for enterprises. Vinh Phuc will promote the application of informationtechnology (IT) in administrative procedures with the goal of creating the bestpossible environment for production and business, thus enhancing the attractionof FDI and investment from society.
At the same time, attention will be paid to removing difficulties andobstacles faced by businesses in various fields, from business registration tobusiness conditions, customs clearance and taxation.
During the period of social distancing to curb the spread of theCOVID-19 pandemic, agencies in Vinh Phuc still maintained their connectionswith investors through many channels, providing them with consultations andlatest information. The province has also intensified online investmentpromotion activities, so as to attract investors after the pandemic is putunder control.
Vinh Phuc has designated 18 industrial parks with total area of 5,228 hain a master plan to 2020 approved by the Prime Minister. By now nine industrialparks have received investment certificates. Industrial parks in Vinh Phuc havegood technical infrastructure and professional management, thus contributing toattracting investors to the province. They reported an average occupancy rateof nearly 62 percent.
Thanksto the province’s endeavours to complete infrastructure in industrial parks anda transport system connecting them, as well as efforts to improve the businessenvironment and reform administrative procedures, Vinh Phuc has become morepopular among foreign investors.
Theprovince reported total industrial production value of 11 trillion VND in thefirst six months of this year, down 9 percent year on year, which it attributedto the impact of the COVID-19 pandemic. The output of most main productsdeclines, such as automobile down 24.8 percent, motorbike 14.4 percent, andelectronic parts 7.7 percent./.
VNA
