In alignment with the policy of the Binh Thuan Provincial Party Committee to attract more investment projects from prominent domestic and foreign investors, the Department of Planning and Investment has intensified its investment promotion efforts. It has expedited administrative reform, enhanced the business and investment environment, and elevated the Provincial Competitiveness Index (PCI). These initiatives have positioned Binh Thuan as a preferred destination for numerous significant projects, effectively leveraging all potential and economic strengths, particularly in the three key sectors: industry, agriculture, and tourism. We had an interview with Mr. Le Ngoc Tien, Director of the Department of Planning and Investment in Binh Thuan province, to gain further insights into these developments.
The leaders of the province extend their congratulations to the investors of the Son My gas-to-power projects chain
Could you provide an overview of the notable achievements in Binh Thuan province’s investment attraction efforts?
In adherence to the policy of the Binh Thuan Provincial Party Committee and Resolution 46/NQ-HDND dated December 9, 2022, of the Provincial People’s Council on the supervisory results of investment attraction, investment licensing, and project management, the department has consistently directed and fostered innovative, diversified investment attraction and promotion strategies in a transformative and creative manner. This is a significant shift from the traditional approach of organizing investment promotion conferences, as was done in 2015, 2017, and 2019.
In 2023, the Department of Planning and Investment initiated a focused investment promotion campaign themed “Binh Thuan - Connecting Potential, Unlocking Resources.” This initiative was aligned with the effective development and implementation of socioeconomic development strategies, plans, and projects. A key priority was to ascertain the interrelationship and role of Binh Thuan province within the North Central region, Central Coast region, Southeast region, and the Southern key economic region, ensuring consistency and cohesion with national, regional, and local investment promotion programs and activities.
In the same year, Binh Thuan province hosted the National Tourism Year, as per Decision 2451/QD-BVHTTDL dated October 5, 2022, of the Ministry of Culture, Sports, and Tourism. Consequently, investment promotion in 2023 was effectively and flexibly integrated with trade and tourism promotion to maximize the impact of events and activities related to the National Tourism Year 2023 - Binh Thuan - Green Convergence. To attract investment, the resolution of the 14th Provincial Party Congress (2020-2025 term) identified three pillars for focused development: industry, agriculture, and tourism.
Through concerted efforts to boost investment promotion and attraction, coupled with accelerating administrative reform, improving the investment and business environment, and raising the PCI Index, the department has positioned Binh Thuan as an ideal destination for domestic and foreign investors. This has resulted in impressive investment attraction outcomes across various fields. Specifically, in 2021-2022, the province attracted two BOT thermal power plant projects - Son My 1 and Son My 2 - with a total investment capital of US$4.14 billion. In 2023, the province licensed 35 investment projects that registered to lease 4,423.7 ha of land and invest VND35,562 billion (US$1.5 billion), marking an increase of 17 projects, a 30.3-fold increase in area, and a 49.7-fold increase in investment capital. Notably, two major projects included the infrastructure construction and operation investment project in Son My 2 Industrial Park (VND1,717 billion) and Son My LNG Terminal (US$1.34 billion). These projects have spurred the province’s sustainable industrial development and catalyzed the formation and development of the circular economy in the industrial sector.
As of December 31, 2023, Binh Thuan province had approved 1,633 investment projects by the Provincial People’s Committee, with a total leased land area of 50,535 ha and a total registered capital of VND1,769,949 billion. In the coming time, the Department of Planning and Investment will coordinate with relevant agencies and localities based on approved programs and plans to attract investment projects, including FDI projects, to stimulate the province’s socioeconomic development.
Binh Thuan is steadfastly dedicated to elevating its standing in the Provincial Competitiveness Index (PCI) In the photo: The conference “Analysis report on the PCI and PGI for 2022 and solutions for enhancing the business environment, boosting competitiveness, and elevating the Green index of Binh Thuan province for 2023”
According to the 2022 PCI Ranking, Binh Thuan’s PCI fell to 42 out of 63 provinces and cities. Could you elaborate on the factors contributing to this decline?
In 2022, the investment environment and investment flows were adversely impacted by unpredictable global developments and the detrimental effects of the COVID-19 pandemic. These factors significantly undermined the operations of local businesses, leading to a decline in the PCI Index rankings of Binh Thuan province.
The primary reason for this decline in ranking was the persistent challenge of land access, which necessitates more drastic reform efforts. Issues related to land procedures remained prevalent, with the time taken for land document settlement often exceeding the regulatory timeframe. This was a common issue encountered by many businesses in the province. Additionally, land pricing procedures were time-consuming, and businesses often did not receive comprehensive and detailed instructions from officers responsible for handling land-related administrative procedures.
While there has been an improvement in the transparency of various types of information and documents compared to the past, businesses have expressed the need for further enhancement in access to information. The PCI 2022 report indicated that local companies found it challenging to access plans and legal documents. Although investment incentives, investment support, regulations on administrative procedures, executive documents, and directions from provincial leaders were made available on websites, these were not provided in a fully comprehensive and clear manner as expected by local companies. This has consequently undermined business sentiment.
In addition to addressing bottlenecks in land access and improving access to information, there is a need for further improvement in the quality of economic management at the provincial level. The support provided to companies in handling emerging difficulties has been found to be insufficient and not timely. Feedback from respondents in the PCI 2022 survey indicated that provincial leaders need to make greater efforts to foster an enabling business investment climate. This will facilitate stable operations and development of companies, attract new potential investors to the province, create more jobs, and contribute more significantly to the province’s socioeconomic development.
Outstanding businesses and entrepreneurs of 2023 are honored with Certificates of Merit for their remarkable contributions
In order to eliminate bottlenecks, improve the business investment environment, elevate the PCI, and position Binh Thuan among the top 30 PCI performers in the country, what are the primary tasks and solutions that the province will concentrate on?
To elevate the PCI in 2023 and subsequent years to rank among the top 30 performers in the country, the Department of Planning and Investment has advised the Provincial People’s Committee to guide the province’s administrative reform efforts and enhance the quality of economic management. The overarching principle is “The government accompanies businesses,” with a particular focus on enhancing administrative quality. The department will work on improving declining indices and indices that are below average, fostering a favorable investment and business environment, and supporting businesses to develop towards sustainable growth. The key tasks include:
Firstly, the department will coordinate with local agencies to develop and advise the Provincial People’s Committee on the implementation of tasks and solutions to increase and enhance the PCI and the Provincial Green Index (PGI) of Binh Thuan province. Specific tasks will be assigned to each local agency and field to improve weak indicators. The department will also consult the committee to adopt plans for the implementation of the District and Department Competitiveness Index (DDCI) of Binh Thuan province.
Secondly, the department will focus on resolving land bottlenecks, particularly in land compensation and ground clearance support. This includes determining land prices, building a modern and synchronous land database and land information system, reviewing and proposing solutions and timelines for determining land prices and granting land use rights certificates to businesses. The department will further advise and propose to the provincial government to recover allocated or leased land areas that are slowly put into use or used for wrong purposes, in order to create a ready land fund for new investment projects. The department will also accelerate the construction of a modern and synchronous land database system and land information system, facilitate organizations and citizens to access, mine, and use land information, and actively review State-managed public land funds that are being used for improper purposes or are not highly effective. The department will build land recovery plans and create a clean land fund for new investment projects, collaborate in land recovery, compensation, and site clearance, ensure openness, transparency, compliance with legal regulations, and respect for the rights of businesses and investors. The department will direct land fund development centers at district, town, and city levels to develop and implement land compensation, support, and resettlement plans for people affected by land reclamation in order to speed up the progress of site clearance for investors to deploy their projects smoothly and quickly. The department will enhance the responsibility of authorities to propagate and disseminate guidelines, policies, and legal regulations on land and construction to people and enterprises and actively support investors to negotiate and overcome difficult congestions in land compensation and site clearance.
Thirdly, there will be an increased focus on enhancing the responsibility of agency leaders in addressing emerging challenges, implementing State guidelines and policies, and following the directives of the Provincial People’s Committee, particularly in resolving difficulties for projects. Leaders will actively handle activities within their jurisdiction and organize meetings and dialogues with businesses to fully resolve difficulties within their assigned authority. In instances where inadequacies in legal regulations are identified, it is imperative to promptly propose rectifications to competent agencies and publicize the results of monitoring and supervisory processes post-business dialogues.
Fourthly, the department will closely adhere to the spirit of business recovery support as per the Socioeconomic Recovery and Development Program outlined in Resolution 43/2022/QH15 of the National Assembly and Resolution 11/NQ-CP of the Government. There will be a concerted effort to motivate public employees to work diligently to eliminate obstacles for businesses and investors. Regular plans for meetings and dialogues with investors will be maintained to address their concerns and prevent disputes between the government and investors. The department will further monitor the implementation of investment projects, actively detect and handle instances of land encroachment, appropriation, and improper use. Regular monitoring and checking of the performance of investment projects will be conducted, and prompt advice will be provided to the Provincial People’s Committee to consider terminating investment projects that violate the law.
Furthermore, to ensure conditions that support investment attraction, Binh Thuan province will focus on reviewing and completing plans, particularly land planning for the 2021-2030 period, with a vision to 2050, annual land planning, and construction planning. The province will concentrate on synchronous infrastructure investment, especially key traffic, irrigation, and electrical infrastructure projects. Efforts will be made to motivate and facilitate investors to invest in business development and expedite the operation of their projects. The department will coordinate with relevant agencies and localities to effectively implement the Binh Thuan SME Support Program for 2024-2026, as announced by the Provincial People’s Committee in Decision 2485/QD-UBND dated November 27, 2023.
Thank you very much!
By Cong Luan, Vietnam Business Forum
Vietnamese
October 2024
Hanoi