Economy: Thai Nguyen province: positive changes in FDI attraction

(VOVworld) -  Early this year, Thai Nguyen province, the northern gateway of Hanoi, received a positive signal when Samsung Group invested 2 billion USD to build a cell phone factory there. South Korea’s leading group said recently that it will soon put up an additional 1.2 billion USD in investment capital to construct a second factory in Thai Nguyen. It has helped Thai Nguyen become the top province in Vietnam in foreign direct investment attraction.


Economy: Thai Nguyen province: positive changes in FDI attraction - ảnh 1
A view of Song Cong Industrial Zone in northern Thai Nguyen Province. The province targets US$5 billion in foreign direct investment this year (Photo: VNA/VNS Photo Hong Ky)

The Foreign Investment Agency says that as of June FDI in Thai Nguyen has accounted for 20.6% of Vietnam’s total investment capital. The investment by Samsung alone makes up nearly 90% of the province’s total investment capital over the past 2 decades. Once Samsung’s high-tech projects are steadily operational, they will contribute 20 billion USD to Vietnam’s annual export turnover and generate jobs for thousands of local people. The provincial Department of Planning and Investment reports that six projects providing components for Samsung have been licensed with capital totaling 100 million USD.

The achievement has not only paved the way for Thai Nguyen to lure more high-tech projects, but demonstrates its tireless efforts to attract foreign investors. Phan Manh Cuong heads the management board of the Thai Nguyen Industrial Zone.

 “We’ve done our utmost to help investors make full use of policies on investment attraction to industrial parks and the land programs there have been widely publicized. We’ve also improved investment promotion activities in a direction to prioritize large, environmental-friendly projects.

In recent years, investors in Thai Nguyen have felt more satisfied about administrative procedures. A one-stop shop model has been applied since 2008, demanding less time from the investors. Phan Thi Nhung, an administrator in Pho Yen district which administers Samsung’s investment projects in Yen Binh Industrial Zone, says:

Pursuant to the provincial People’s Committee’s decision on simplifying administrative procedures, we have kept a close eye on the work process of administrative staff in charge of receiving investors. We try to ensure that all administrative procedures are done in accordance with regulations. In addition, we have improved the guidelines and explanations, and sped up the completion of licensing procedures for investors.

Land clearance has been much improved throughout the entire local political system, creating coordination between local authorities and relevant agencies in promptly making space available to investors. Nguyen Duc Hoa represents the investor building infrastructure in Yen Binh Industrial Zone.

When we decided to invest in the zone, we found that the procedures to receive licensing, hand over the space, and compensate for land clearance were quickly carried out. More particularly, security has been ensured for business operations. Provincial leaders have held regular meetings with investors to deal with arising problems making them feel secure about implementing projects.

Following the path of Samsung, many foreign economic group from Japan, South Korea, Hong Kong, and Singapore, have recently turned their eyes to investment opportunities in Thai Nguyen. This year, Thai Nguyen is expected to attract about 4 billion USD in FDI. To achieve this goal, it plans to increase its promotion of a dynamic province full of potential and striving to become a key economic hub in northern Vietnam.