Business Business

17/09/2022 - 07:11

Welcoming the FDI “wave" again

Recently, there have been many direct investment promotion activities being organized; besides, many visits and investment surveys of foreign enterprises to Hue also began to bustle again, opening up many great opportunities to welcome FDI (Foreign Direct Investment) inflows.

Within the framework of investment promotion activities in Japan

Taking advantage of FDI projects

From a growth perspective in 2021, the FDI sector has significantly contributed to the overall growth of Thua Thien Hue. Despite certain difficulties due to the impacts of the pandemic, the revenue of this region reached $ 1,200 million, increasing by 15% compared to the same period last year, contributing to the state budget reaching $129 million, up 19.5%, accounting for 26.2% of the total budget revenue of the province.

Among these, Carlsberg Beer Vietnam Co., Ltd is the FDI enterprise with the largest budget contribution to the province with $88.3 million, accounting for 68.4% of the total budget revenue of the FDI sector.

Other names have also contributed equally to helping Thua Thien Hue grow to overcome the pandemic, such as Scavi Hue Company, which contributed $12 million to the budget, increasing exceedingly 3.5 times compared to 2020.

In addition to contributing to the overall growth, FDI enterprises also make a great contribution to social security work by creating jobs for a large number of workers and improving people's lives.

In only one year - 2021, this sector employed more than 24,500 workers, in which, textile and garment enterprises recruited the largest number of workers, including Hanesbrands Vietnam Co., Ltd (USA) for nearly 6,400 employees, and the Scavi Hue Co., (France) with more than 8,000 workers.

FDI enterprises also form steps for economic restructuring. The participation of the FDI sector in many industries and fields, especially the concentration of FDI capital in the processing industry and some other industries, is an important factor promoting economic restructuring towards modernity, contributing to building a dynamic economic environment. Import and export turnover in 2021 reached over $1.8 billion, growing 30% compared to the same period last year. Particularly, exports exceeding $1 billion held a significant contribution from this sector.

Opportunities in attracting investment

With its own advantages, the FDI sector has always shown its strength in local economic development. In policies to attract investment, this area is always taken into consideration and has certain privileges.

As soon as the pandemic situation is basically under control, Vietnam has officially restored the visa policy as before COVID-19 to open the door for international tourists to return. Not only does this bring positive effects to tourism, but the easing of entry measures also contributes significantly to promoting foreign investment in Vietnam in general and Thua Thien Hue in particular.

Also right after the "re-opening" day, the Provincial People's Committee in collaboration with the American Chamber of Commerce in Vietnam (AmCham) successfully organized the conference named "Meeting Thua Thien Hue - the green province : defining the future of the green economic growth". This is not only an important foreign event marking the cooperation relationship with AmCham, but also a transformation in investment promotion of Thua Thien Hue.

From this activity, investment promotion activities have been converted from attracting investment online into calling for direct one, aiding to increase opportunities to find and approach foreign investors with strengths and prestige.

According to Mr. Phan Quoc Son, Deputy Director of the Department of Planning and Investment, the conference named "Meeting Thua Thien Hue- the green province" is the message of Thua Thien Hue province about the ancient capital’s strong desire. This is an opportunity for Thua Thien Hue to promote and introduce its potentials, strengths, distinct competitive advantages and development goals and orientations of the locality in the coming time in order to promote, attract and call for investment in clean and environmentally friendly industries.

After this conference, AmCham is promoting to open a representative office in Thua Thien Hue to connect, promote and call for large and prestigious US investors to invest in the locality. Many activities to promote direct investment in the locality, provinces, and abroad are also organized and joined by Thua Thien Hue.

In addition to the working sessions, direct surveys of large companies or signing minutes of discussions and cooperation, the province also organizes and participates in investment and trade promotion within the framework of the Vietnam - Czech - Europe Economic, Trade and Investment Cooperation Forum in the Czech Republic, and the Vietnam - Japan Kyushu region - Japan trade promotion, investment and multifaceted cooperation program.

The recent investment promotion activities  are the stepping stones in attracting investment in the coming time. Thua Thien Hue will continue to adjust investment promotion plans to adapt to the actual situation.

In addition to strengthening on-site investment promotion, the province will also pay more attention to direct investment promotion activities as well as the promotion and support for FDI projects; especially promulgating many policies to attract investment, focusing on improving administrative procedures, making the investment and business environment transparent, and creating the best conditions for foreign investors to research and carry out projects in the area.

The province is also continuing to support businesses to remove inadequacies and problems relating to capital, banking and financial services; and, at the same time, creating more linkage between the government and local FDI enterprises. This will help businesses have diverse perspectives on local development potential; thereby, working together to create a healthy and growing business environment.

With appropriate adjustments in investment promotion, efforts in supporting businesses, etc., it is expected to "pave the way" for investors to come to Thua Thien Hue for research and investment; together with the province in the development process.

In 2021, the whole province issued new investment registration certificates for four foreign investment projects with a total registered capital of $169.1 million (equivalent to 3,873 billion VND). In particular, the project of a software and information technology park with a total investment capital of $151 million (equivalent to 3,458 billion VND), is urgently preparing the investment and construction procedures to commence the project. In the first six months of 2022, the province has 2 licensed FDI projects with registered capital of $59.5 million, equivalent to 1,348 VND.

Story: Hoang Anh. Photo: Bich Thao