Binh Phuoc: Efforts for Better Business Environment, Welcoming New Investment Wave

9:53:50 AM | 11/7/2023

Lying in the southern key economic zone, Binh Phuoc has many advantages to attract investors and develop large-scale projects. With many preferential policies, the province is making efforts to improve the investment environment and enhance the Provincial Competitiveness Index (PCI) to welcome new investment waves. Ms. Tran Tue Hien, Chairwoman of Binh Phuoc Provincial People's Committee, grants an exclusive interview on this issue to Vietnam Business Forum.


Chairwoman of Binh Phuoc Provincial People’s Committee Tran Tue Hien at a working session between Binh Phuoc province and Japanese businesses

In 2023, disadvantages and advantages are forecast to come together. As the leader of the province, could you please introduce some outstanding results of socioeconomic development in the first months of the year?

2023 is a mid-term year with great significance in realizing the goals of the 5-year plan (2021-2025). Binh Phuoc carried out socioeconomic development plans in the first six months of the year in the context that difficulties and challenges are coming together. However, with the strong effort of the whole political system, the cooperation of the people and the business community, the socioeconomic performance continued to achieve many positive results in the first six months of 2023.

The province's gross regional domestic product (GRDP) was estimated to grow 7.27%, the highest growth in the Southeast region and ranked 14th nationwide. Notably, the industry grew 8.85% in the second quarter of 2023, showing a quick recovery amid ongoing difficulties in the country.

Much progress was seen in investment attraction. The province drew 15 domestic investment projects with VND3,500 billion in the first six months of the year and 15 foreign direct investment (FDI) projects with US$610 million. These figures showed a 12-times growth over the same period in 2022 and fulfilled more than 200% of the yearly plan.

Social and cultural aspects progressed. People’s social security and livelihoods were improved. Care for policy beneficiaries, disadvantaged people, the poor and workers was delivered promptly and effectively.

However, the province also faced numerous difficulties and limitations like low budget revenue and public investment disbursement, slowing export due to global economic downturn and Covid-19 epidemic resurgence.

To achieve all the tasks, in the last six months of the year, the province must make every effort to overcome limitations and shortcomings; strongly promote growth momentum, mobilize and effectively use all resources; focus on implementing proposed tasks and solutions drastically, consistently and effectively.

In 2022, the Provincial Competitiveness Index (PCI) of Binh Phuoc province climbed seven places to rank No. 43 out of 63 provinces and cities nationwide. In particular, of 10 subindices, the Proactivity of Provincial Leadership Index grew by 0.2 points and 14 places (to No. 13). Would you mind revealing the responsibility of the leader of the provincial administration in boosting PCI performance to create motivation for the entire administration to advance forwards together?

In the past years, Binh Phuoc has actively streamlined administrative procedures to create the most open and favorable business and investment environment for people and businesses. This is also key to the province's growth in 2023 and the following years.

Carrying out Resolution 02/NQ-CP dated January 10, 2022 of the Government, on July 15, 2022, the Provincial PCI Working Group coordinated with relevant bodies to organize a workshop on implementation of Resolution 02/NQ-CP and conducted in-depth analysis and assessment of PCI sub-indices as well as the District and Department Competitiveness Index (DDCI). Hence, agencies and businesses jointly defined common goals, specific tasks and solutions to improve the business environment and sharpen the province's competitiveness.

In 2022, despite being heavily affected by the COVID-19 epidemic, the Provincial People's Committee urged and directed relevant agencies to boost solutions to quickly deal with difficulties and obstacles; promptly support people and businesses to restore production and business activities, and flexibly and effectively adapt to the epidemic. 100% of administrative procedures were carried out online or at the Provincial Public Administration Service Center or the District Single Window. Competent agencies regularly reviewed and advised the Provincial People's Committee to minimize investment and business conditions.

In order to further reinforce the responsibility of agency leaders, the Standing Board of the Provincial Party Committee issued Directive 19-CT/TU dated September 24, 2022 on strengthening the Party leadership in improving the investment environment and enhancing PCI Index and the Provincial People's Committee launched Plan 346/KH-UBND dated November 22, 2022 on implementation of Directive 19-CT/TU. With an effort to uphold the direction of official leaders at all levels and branches in policy enforcement, they advised the Provincial People's Committee to effectively and promptly solve difficulties and problems against companies and investors.

In the coming time, the province will continue to direct all levels and branches to further attach the responsibility of leaders in improving the business investment environment and enhancing competitiveness within their jurisdiction.

2022 was the second year that Binh Phuoc province executed the Project "Building the District and Department Competitiveness Index (DDCI) in the 2021-2025 period”. How do you assess changes in administrative reform and construction of an enabling government at provincial and local authorities in Binh Phuoc province?

The DDCI Index of Binh Phuoc province was built close to market requirements, adapted to new policies and laws and adapted to actual local conditions. This is an important tool to assess economic management efforts of government agencies to achieve the goals stated in Resolution 02-NQ/CP.

Along with carrying out the DDCI Project, the province also consistently executed solutions to reform administrative procedures and enhance information technology application. The province launched the "92 peak days campaign" to enhance the effect of delivering and using online public services and fostering digital transformation for digital government development.

As a result, much progress was seen in administrative reform and building an enabling government for businesses and people. The launch of online public services was strongly supported by businesses and people in the province. The management and administration of governments at all levels was improved to accelerate the process of building a civil service with integrity, transparency, effectiveness and efficiency to meet service requirements to people and businesses. Conditional business procedures were always reviewed for simplification.

In addition, information technology application was upgraded and accelerated to build e-government and digital government. Administrative procedures were always updated and promulgated promptly and publicly at the Provincial Public Administration Service Center, working offices of governmental agencies, single-window divisions in districts and communes and on websites.

The management, operation and settlement of administrative procedures filed by businesses and people was applied in the electronic environment, integrated the task of improving the business investment environment with the application of online public services, synchronously deployed from provincial to district and commune levels.

Indeed, the annual DDCI Report clearly shows the quality of economic governance at provincial and district agencies in the perspective of companies and business households, thus creating a strong motivation for public administration reform and service attitude of officials to enterprises and people.

According to Binh Phuoc Planning in the 2021-2030 period, with a vision to 2050, Binh Phuoc aims to become a rapidly and sustainably developed industrial province by 2025, with a large economic scale synchronously built on both hard infrastructure and soft infrastructure. By 2030, it will become a modern, effective and sustainable industrial province and an "attractive destination" in the Southeast region. By 2050, it will become a modern, industrialized, prosperous and civilized province. Could you please reveal some specific action plans of the province to accomplish the above goals? What commitments does the province make to promote economic growth, attract investment flows and develop businesses?

The general report on Binh Phuoc Planning for the 2021-2030 period, with a vision to 2050, was completed. The province submitted it to the Central Appraisal Council which forwarded it to the Prime Minister for consideration and approval. In order to achieve its announced goals, in the coming time, the province will focus on major groups of solutions as follows:

Budget mobilization for investment: The province will utilize the support of central authorities and donors to attract capital from the Central Budget, the official development assistance (ODA) and other supporting capital sources. The province determined that mobilizing private and foreign sources is an important approach, mainly for local socioeconomic development.

Budget revenue: The province will facilitate and support companies to deal with their difficulties in business; promote economic growth; and strictly manage budget collection by law.

Solutions on mechanisms and policies for joint development: The province will effectively carry out cooperation programs with sister localities while expanding cooperation with other localities on a voluntary, equal, mutually beneficial and lawful basis. It will enhance foreign affairs and international cooperation; accelerate the enforcement and utilization of international commitments, especially those in new-generation free trade agreements (FTAs) such as the CPTPP and EVFTA.

Solutions on human resource development: Binh Phuoc will build a contingent of well-behaved, capable civil servants; continue to effectively provide career guidance and job placement; boost capacity building of vocational training institutions; ensure social security and livelihoods for workers; and build social infrastructure.

Besides, the province has other solutions on environment, science and technology, urban and rural development management.

In the past time, investment attraction and business development have been paid special attention by Binh Phuoc province. Every year, the province develops investment promotion programs and plans to promote, introduce potential, and invite investors from Japan, Taiwan, South Korea, Thailand, Singapore, Australia and other markets.

Siding with businesses and investors, the province is committed to focusing on infrastructure development, especially regional and inter-regional transport systems. In the coming time, Ho Chi Minh City - Chon Thanh Highway and Gia Nghia (Dak Nong) - Chon Thanh (Binh Phuoc) section on North - South Expressway will be constructed and put into operation to form a new traffic route in addition to currently only route - National Highway 14 that links the Central Highlands and the Southern Key Economic Zone. After these projects are completed, they will reduce the travel time from Dak Nong province to Binh Phuoc and to Ho Chi Minh City as well as facilitate connections to Long Thanh International Airport and Cai Mep - Thi Vai Terminal (Ba Ria - Vung Tau province) to create breakthrough socioeconomic development, attract investment flows and ensure social security and national defense.

In addition, the province will focus on developing and promulgating investment incentive policies; regularly review them for prompt amendments and supplements; promulgate action plans to carry out main tasks and solutions to improve the business environment and enhance competitiveness.

Annually, the province launches plans to enhance the Vietnam Provincial Governance and Public Administration Performance Index (PAPI), the Satisfaction Index of Public Administrative Services (SIPAS) and the Public Administration Reform Index (PAR Index). The province also promulgates plans to perform tasks and solutions to improve the effect of foreign investment cooperation in 2021 - 2030.

With its dynamic, optimistic approach and available potential plus open and attractive investment incentive policies, Binh Phuoc will call for investors with cutting-edge technology, strong financial capacity to invest in the province and contribute to local socioeconomic development!

Thank you very much!

By Duy Binh, Vietnam Business Forum