Compared to other provinces in the central region of Vietnam, the growth of PCI in Quang Ngai province has been the most surprising. From low score in the late 2000s, PCI of Quang Ngai jumped up sharply in the early 2010s.
Up and down
PCI – the Vietnam Provincial Competitiveness Index-has been a critical tool for measuring and assessing the standards of economic governance in Vietnam’s 64 provinces and cities from the perspective of private sector businesses.
The central province of Quang Ngai, in the late 2000s, annually belonged to the group of 20 provinces with the lowest PCI.
The change of provincial PCI started since 2011 when it jumped up to the 18th position from the 55th position in 2010 (scoring 62.24 points), being a member of the good group.
The improvement brought the central province of Quang Ngai to the 18th position in the country and the 5th position in the central coastal region of Vietnam.
However, PCI in Quang Ngai slightly dropped one year later, from 18th to 27th in 2012.
Because of failure in keeping the ranking, Quang Ngai Government seriously reviewed the causes, shortcomings and built a detailed target to recover the provincial PCI.
By many effective and innovatory solutions, Quang Ngai province successfully recovered its PCI in 2013. With a climb of 20 places, PCI of Quang Ngai significantly rose from the position of 27th to 7th, bringing Quang Ngai into the top-ten group having high score of PCI.
Solutions
Although owning advanced infrastructure of traffic system as well as a convenient position in the central region of Vietnam, Quang Ngai had not yet attracted the land fall of investors.
Therefore, local government strengthened further the process of administrative innovation to be simpler and clearer.
As many as encouraged policies for investors were issued. Investors coming to Quang Ngai will enjoy not only special policies of local government but also concessionary policies of the State government.
As recent result of PCI in 2013 goes, Quang Ngai increased 7 areas: land access, transparency and access to information, time costs, business support services, labor training, legal institution and policy bias. Two dramatic increased points are institution, policy bias (4.23 scores) and business support services (1.86 scores).
The clear example for the improved investment environment in Quang Ngai is the license of large-scale FDI project Vietnam-Singapore Industrial Park (VSIP) in Son Tinh district invested by Sembcorp Group, a leading firm in Singapore.
VSIP expects to attract a landfall of FDI projects to Quang Ngai province. Because, this industrial zone – although being constructed – has so far granted 6 investment certifications to investors with total registered investment of over 100 million USD.
Advantage promotion
How to remain the position in the upcoming years is a challenge for local government.
“It is necessary to build up effective, feasible and long-term plans in keeping the ranking,” vice-chairman of Quang Ngai Provincial People’s Committee Pham Nhu So – Head of Dung Quat Economic Zone Authority said.
“We will specially focus on promoting Quang Ngai’s advantages in calling for investors,” he added.
The first advantage is provincial geography position. It is great for enterprises to expand their markets in central coastal provinces as well as two leading cities of Ho Chi Minh and Ha Noi. Besides, the national highway No.24 will bring them to the highland provinces of Vietnam and several countries of Thai Lan, Laos and Cambodia.
The second advantage is seaward. Owning over 11,000 km square of sea area and 130 km seaside road, this province is great for any investors interesting in fields of tourism or marine economy and services.
The third advantage is business environment. Quang Ngai is home to the country’s leading economic zone namely Dung Quat Economic Zone, a multi-various sector zone with over 8 billion USD investment so far. Moreover, the other potential zone is Vietnam Singapore Industrial Zone (VSIP) invested by Sembcorp Group (Singapore), which is expected to bring hundreds FDI projects to Quang Ngai in the future. On the other hand, Quang Ngai has several industrial zones such as Tinh Phong, Quang Phu and Pho Phong specializing in light industry and production.
The fourth advantage is concessionary policies. Being a member of key economic central region, Quang Ngai has been enjoying special supports from the State Government, so investors to this province will not only benefit concessionary policies from the Central Government but also enjoy a range of encouraged policies from the provincial government about land lease, taxation, and labor training.
The final advantage is human resource. With over 1.3 million populations, the young people cover the most, so investors will be comfortable to recruit workers from a rich instant labor resource serving in fields of manufacturing, consumer goods, food, beverages, clothing and footwear. Besides, to improve the quality of local workers meeting high demand of investors, as many as vocational training programs have been pushed up annually by Quang Ngai government.
To sum up, Quang Ngai owns as many as great chances of attracting investment. Believe that, with available policies, Quang Ngai will be an attractive destination of investors.
Minh Chau
A significant jump of PCI and investment in Quang Ngai province Related image(s)
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