“The province’s constant efforts to improve local investment climate were duly rewarded”
A warm investment climate holds the key to wooing investors to any location. Northern Thai Nguyen province, as a result, adopted a project on ameliorating the province’s investment climate for 2006-2010 on July 26, 2006.
Its major objectives were to put in place a conducive environment to help the province attract domestic and foreign investors for socio-economic augmentation and infrastructure development.
After nearly five years, the project has created a turnaround in diverse socio-economic fields. The province’s investment climate has been appreciated by prestigious investors and organisations and that was mirrored through significantly improved province competitive index (PCI) in 2009 against 2008. In 2009, Thai Nguyen ranked 31 out of 63 provinces and municipalities in PCI terms, moving up 22 places compared to 2008 and it was listed among localities with fair PCI.
In the past years, Thai Nguyen authorities have concentrated assorted resources into socio-economic infrastructure development, particularly transport infrastructure. Accordingly, it has joined hands with the Ministry of Transport to start work on the Hanoi-Thai Nguyen highway, repaired and upgraded former the National Highway 3 and built infrastructure at Nam Pho Yen and Diem Thuy industrial zones (IZs) and other local industrial clusters (ICs), creating premises for industrial development.
The province also worked on the planning of new IZs and ICs which cover thousands of hectares to woo investments.
Greater efforts were also made to compose diverse planning schemes involving with Thai Nguyen-Tuyen Quang-Bac Kan integrated triangle, a modern urban area west of Thai Nguyen city and Nui Coc Lake resort.
In terms of investment promotion, these activities have enjoyed greater support and attention from the local governmental authorities and become increasingly professional.
In the past five years, Thai Nguyen has organised five investment promotion workshops attracting thousands of investors and big business groups to the province. Notably, in January 2009 one such workshop was wrapped up with great successes which saw nine investment projects capitalised a total VND3.5 trillion ($175 million) awarded licences and other 21 business cooperation contracts clinched valued more than VND38 trillion ($1.9 billion). The workshop welcomed more than 250 individual and corporate investors, big domestic and foreign groups and representatives from some foreign embassies.
Thousands of foreign investors have arrived in Thai Nguyen and worked with relevant authorities in search of investment and cooperative opportunities.
Promoting investment abroad also remains a focus of the local government.
Accordingly, the province have sent six managerial and business delegations to Europe, South Korea, Japan, China and Laos to promote its image in the eyes of international investors.
The province has applied the one-stop shop mechanism in dealing with investment procedures since June 2008. Up to now, 78 per cent of administrative procedures pertaining to investment projects’ implementation were revised and supplemented. In the past five years, around 100 mechanisms and regulations were made public, creating a comprehensive legal framework to monitor local investment activities.
Thai Nguyen’s constant efforts to improve local investment climate were duly rewarded. By October 2010, Thai Nguyen was home to around 430 investment projects worth more than VND104 trillion ($5.2 billion) in total registered capital. Big projects in terms of land area and capital size mainly involve with building green resorts, urban complexes and highways.
Huge capital flows into establishing big trade centres, high-class hotels and urban residential complex have mirrored investors’ appreciation for the province’s future services development.
Recently, Thai Nguyen gave the nod to some big projects of innovative ideas such as Nui Coc Lake resort and detailed planning of new IZs. Some most significant projects include an industrial sewing plant of South Korea-based ShinWon Company costing $15 million and creating jobs for 6,000 workers, Quang Son cement plant with annual capacity of 1.5 million tonnes, the Hanoi-Thai Nguyen highway and a Song Da Group’s urban area.
Improved investment climate has also promoted the private sector’s development in Thai Nguyen. By the end of 2010, the province will be home to around 3,000 domestic private businesses capitalised approximately VND18 trillion ($900 million).
In 2010 alone, according to the local investment authorities, more than 500 new businesses with a total registered capital of over VND3 trillion ($150 million) were established in Thai Nguyen, 1.4 times more than in 2009.