Possessing unique competitive advantages compared to other localities, in recent years, Ba Ria – Vung Tau quickly rose to become the focal point to attract investment, especially foreign direct investment (FDI) in the region. FDI has become an important source for the province, contributing to GDP growth in the area and accelerating economic restructuring towards industrialisation. Following is the interview with Mr Dang Minh Thong, Deputy Director of Provincial Planning and Investment. Minh Tuan – Kim Bang report.
Could you please share more details about this success? Which sectors does the province focus on to attract FDI?
As of December 2013, the province had 296 valid FDI projects with total registered investment capital of US$27 billion. In recent years, FDI plays an important role for the provincial socio – economic development. The annual implemented capital of FDI projects accounted for approximately 60 percent of total investment capital in the area. New capacity from the capital from other companies has contributed significantly to the economic infrastructure in the province. Many large-scale projects put into operation in the fields of industry, seaport, tourism, etc become the driving force for growth and economic restructuring, adding investment capital to development, contributing to export growth, export restructuring, increasing revenues and creating jobs; and also contributing to the spread of capital, technology, management skills, labour skills and promoting production and business.
With the strategy to build Ba Ria – Vung Tau province to become the industrial and port cities in the future, and with geographical location, natural conditions, in the coming time, the province will focus on attracting investment into the industries and the development of services and trade. Specifically, in industry, the province gives the priority in attracting investment in supporting industry for mechanical, electrical – electronics, chemicals, and equipment for maritime, mining and processing of petroleum, shipbuilding, oil and gas service, logistics, ports service, including investment in infrastructure, warehousing, transportation, logistics, human resource training and other related services; commercial products or high quality tourism services.
It can be seen that the current FDI inflow remains focused on strong disbursement in Ba Ria – Vung Tau. Could you explain why?
Ba Ria – Vung Tau has achieved impressive success in attracting investment mainly due to the peculiar advantages of the province. First is the geographic location and natural conditions which have helped Ba Ria – Vung Tau possess many potential advantages in attracting investment. The province is located in the dynamic economic region with systematic deep-sea port, relatively complete industrial zones, large reserves of oil and gas and large proportion of mining industry and modern transportation infrastructure connecting the region.
In addition, the Provincial People’s Committee always directs all branches and levels to perform synchronous solutions for creating open investment environment, promoting administrative reform towards one stop-shop model. Investors will receive guidance from the Department of Planning and Investment. They will also receive favourable conditions for investment procedures, registration of business establishment, applying for investment certificate in one stop-shop model. In addition to the measures to improve the investment environment, the review, testing and inspection of investment projects have been identified as one of the key tasks. In addition, the province is also interested in investment promotion with key focus, clearly defined object to attract investors, organising workshops to provide information for the investors about areas in need of investment.
To assist investors to accelerate the implementation of projects and shifting registered capital to implemented capital, the Department has advised the province to focus on implementing synchronous solutions: support for land clearance to hand over to investors, investing in infrastructure outside the projects, especially roads connected to the project areas; boosting dialogues with enterprises to capture timely information about problems of enterprises to take measures to support. At the same time, the Department continues to improve and further simplifies the administrative procedures for resolving investment procedures, registration of business establishment for investors when investing or trading in Ba Ria – Vung Tau.
Over the recent time, provincial leaders and the relevant sectors have made huge efforts in the reform of administrative procedures, following one-stop shop model and support investors to implement investment projects in the most favourable condition. Every week, Chairman of the Provincial People’s Committee holds one meeting to solve problems at the request of investors. The Interdisciplinary Support Team headed by the Vice Chairman holds meetings every 2 weeks in order to remove obstacles and facilitate project implementation. Also, in the monthly briefings, the Provincial People’s Committee directs its related agencies to check progress of each project to propose solutions to solve problems for investors.
Ba Ria – Vung Tau possesses strengths in marine ports, shipping and logistics services; however, the development of these fields still faces many shortcomings. What are the province’s solutions and plans to address these?
To overcome this, in the coming time, Ba Ria – Vung Tau will focus on the advantages of a coastal province to promote the development of port services, shipping, post-port services, tourism, oil and gas; develop modern and high quality services. The province also promotes investment in industrial parks in the direction of using modern technology, using resources, energy, water and land economically and environment friendly, meeting the requirements of sustainable development, increasing the occupancy rate in IPs in Ba Ria – Vung Tau. The province also develops oil refinery technology, chemical processing and oil products in Vung Tau and supporting industries including mechanical, electric – electronic, chemical. We also build and develop Ba Ria – Vung Tau into logistics services areas, developing port logistics services in Cai Mep – Thi Vai, Vung Tau and Con Dao, forming commodity distribution centres associated with port services.
In addition, the province also focuses on mobilising capital for infrastructure development, upgrading and improving the system of transport infrastructure linking the deep water ports, road and sea, linking Ba Ria – Vung Tau with the other provinces in Southern key economic region for transporting freight such as Thi Vai – Cai Mep road, HCM City – Bien Hoa – Vung Tau highway and the horizontal line connecting Highway 51 to Cai Mep area.
Can you tell us more about the province’s application of the one-stop shop mechanism?
The implementation of the solution to create open investment environment, promoting investment-trade reform is one of the key tasks that the province is aggressively directing its branches and levels to perform. When investing in Ba Ria – Vung Tau, investors will be guided by the Department of Planning and Investment (for projects outside the IZ) and the Management Board of Industrial Zones (for projects IZ projects) for investment procedures, registration for business establishment and applying for investment certificate following one-stop shop model. In order to create favourable conditions for investors to implement procedures for investment projects outside the IZ, on April 19th 2007, Ba Ria – Vung Tau issued Decision No. 23/2007/QD-UBND provisions of the order and procedures for implementation of investment projects and time taken outside the industrial zones in the province. At the same time the province continues to improve and further simplifies the procedures for investment, registration business establishment when they invest in the province.
Processes and procedures in accordance with Decision 23/2007/QD-UBND dated April 19th 2007 were simplified, and publicised at the Reception and Release, facilitating organisations and individuals. Organisations and citizens are guided and fully explained by officials in polite and civilised manner to meet the basic requirements of the people and businesses. The province always meets and holds dialogue with businesses to capture timely information about the difficulties of companies to take measures to support timely. The procedures and processes are publicly listed and posted on the Web site of the Department. Ba Ria – Vung Tau also implements the state’s preferential policies to encourage investment, contributing to improve investment environment and make the province’s competitiveness index in the top list of the country.
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