Business Business

06/09/2020 - 07:16

Hue: attracting on-site FDI

Attracting investment in Foreign direct investment (FDI) projects is considered as an opportunity to revive the economy since this field contributes considerably to economic development, especially when it makes a contribution to the budget and provides jobs for local people.

Attracting FDI enterprises would contribute to solving the employment problem for local people.

FDI decreased by 36.5%

Due to the COVID-19 pandemic, the implementation progress of FDI projects in the area tends to decrease since many big projects that are in the process of carrying out the investment and construction procedure could not be implemented as planned, such as the projects Kanglongda Factory (Hongkong-China) and Phu Son Waste Treatment Factory (Hongkong - China). During the first six months of 2020, investment capital in this area reached only VND 350 billion, which is equivalent to USD 15 million, down 36.5% year-on-year.

In particular, the Minh Vien Lang Co International Resort project of the investor - Minh Vien International Joint Stock Company has to suspend its construction as the company's leaders returned to their country and haven't been back yet since early 2020 due to the COVID-19.

By now, the volume of construction implementation - phase 1 of the project has reached VND 350 billion. This phase is expected to be completed and put into operation in the second quarter of 2021, with a total investment of about VND 1,000 billion.

Not only the progress of FDI projects is affected, but investors also limit their market exploration to expand their investment, leading to a decrease in the number of foreign investors coming to examine and invest in Thua Thien Hue province, compared to the same period of last year.

The last six-month period has witnessed the reduction of two projects and nearly $60 million in total registered capital, compared to the same period of the previous year. In the whole province, there are only four FDI projects being issued the investment registration certificates, with a total registered capital of $15.41 million. Up to now, the province has 111 FDI projects, with a total registered investment capital of $3,828 million.

FDI enterprises making a vital contribution to budget revenues

Despite some difficulties, a range of big projects is implemented on schedule. Among these, the project of Billion Max Vietnam Export Processing Factory is considered an outstanding one, which so far has been brought into operation in phase 1 and accelerated the completion of the entire factory construction with installing machinery and equipment of phase 2, as scheduled.

Not to mention HUE AMUSEMENT & BEACH PARK (HAB Park) Project in Vinh Thanh commune, Phu Vang district. By the end of 2019, the project's implemented capital source was estimated at USD 1.3 million and is expected to have an additional disbursement of VND 100 billion by the end of 2020.

Prioritizing the attraction of on-site investment

The foreign investment sector contributes significantly to economic growth; in 2019 alone, the revenue of this sector reached USD 967.36 million, accounting for 28.9% of the total provincial budget revenue. FDI enterprises also play an essential role in social welfare when providing jobs for more than 23,000 local workers with an average salary of VND 4 to 7 million per month.

According to Mr. Nguyen Dai Vui, Director of the Department of Planning and Investment, when the COVID-19 broke out in early 2020, the proposed investment promotion plans in 2020 were also changed to suit the reality and anticipate opportunities, including implementing on-site investment promotion solutions, being close to businesses and investors to remove difficulties promptly, and flexibly applying the policies; then, step by step, building a safe, efficient, and attractive investment to allow the province to soon become a locality with comparative advantages within the region in attracting investment.

In particular, it is crucial to focus on big projects, create added value and budget revenues, etc., having a significant impact on the socio-economic situation of the province in the coming time such as the projects of producing gloves and polyethylene fibers, Nakamoto Vietnam factory, and Chan quartz processing factory.

The Department has also accelerated the implementation progress and resolutely handled projects violating the investment progress. It has also adjusted regulations on the order and procedures of implementation, supervision, and management of investment and construction projects that do not use the State capital in the locality to shorten the time of investment procedures.

The Director of the Department of Planning and Investment affirmed that the Department has also prepared information and conditions to be ready to attract investment into the sectors of agricultural production, agricultural products processing, fabricating and manufacturing raw materials, spare parts and auxiliary products, tourism - services, information technology, and cultural industry, once the pandemic is under control.

The province focuses on promoting investment in not only old markets like Korea, Singapore, Thailand, Japan, Hong Kong (China), but also the US and Europe ones. Enterprises from overseas countries can benefit from Vietnam's accession to bilateral and multilateral Free Trade Agreements and take advantage of the local strategic position in seaports, airports, and low-cost labor.

"In addition to the investment promotion solutions, the province also promotes the implementation of solutions to maintain and improve the ranking of indicators related to administrative reform such as PCI, PAPI, and PAR Index to create a friendly environment to attract investment. Additionally, the province has been forming the image of Thua Thien Hue, a green - clean - bright, friendly, and safe city, creating a sustainable investment destination for investors," Mr. Nguyen Dai Vui stated.

Story and photos: HOANG LOAN