Clearing Bottlenecks and Creating Motivation for IPs and EZs

Despite many difficulties, Ca Mau province has made much progress in infrastructure development and investment attraction in industrial parks (IPs) and economic zones (EZs). Industrial and economic zones have helped draw resources, step up economic restructuring, increase budget revenue, promote growth, create jobs for local people and importantly assist rapid and sustainable social and economic development of the province.

Vietnam Business Forum has an interview with Mr. Duong Hoai Nam, Director of Ca Mau Economic Zones Authority, about these results.

Could you please briefly introduce the industrial and economic zones of Ca Mau province?

To date, Ca Mau province has planned three industrial zones linked to input supply sources of agriculture - forestry, seafood and offshore low-pressure gas. Khanh An Industrial Park is located adjacent to Ca Mau Gas-Power-Fertilizer Complex, focusing on low-pressure gas, chemical, fertilizer, construction material and woodwork production. Hoa Trung Industrial Park is for seafood processing, animal feed, aqua feed and service industries. Song Doc Industrial Park is for marine industries and services, warehousing and ship repair.

In addition, the Prime Minister issued a decision on the establishment of Nam Can Economic Zone - one of 18 coastal economic zones of the country. The economic zone, linked to Hon Khoai Seaport, is a general economic zone, an international trade hub of the Mekong Delta region, and an ecotourism service center characterized by mangrove forests. It has provided favorable conditions for socioeconomic development of Ca Mau province in particular and the Mekong Delta region in general.

In 2021, despite COVID-19 pandemic impacts, we licensed 10 new projects with a combined registered capital of VND2,329.47 billion (US$100 million), including a foreign direct investment (FDI) project with VND98.87 billion (US$4.3 million) and an infrastructure project with VND538.6 billion (US$23 million). We allowed eight projects to revise their investment capital fund and terminated two projects, resulting in a decrease of VND257.5 billion (US$11 million) in registered capital.

As Ca Mau industrial and economic zones revised their planning in the first six months of 2022, just one new project was licensed; three projects were revised their investment fund (one project added its investment fund by VND7 billion); and one project was terminated, resulting in a decrease of VND98.87 billion in investment capital.

To date, industrial parks and economic zones of Ca Mau province are home to a total of 49 valid investment projects with a total registered capital of VND20,198.71 billion (US$850 million), including two FDI projects with VND1,885.6 billion (US$81 million). 29 operational projects are employing 2,739 workers (439 people more than the plan and 1,126 people more than the same period of 2021) while the remaining 20 projects are being prepared for investment.

The total revenue of tenants in industrial parks and economic zones in 2021 was estimated to reach VND3,914 billion (equivalent to 170% of the yearly plan and 148% over the same period of 2021). Their export value was VND1,291 billion (equivalent to 152% of the yearly plan and 240% of the same period of 2021). They paid VND52.69 billion to the State Budget.

In addition to the above results, the investment and development of industrial zones in Ca Mau province have not yet met expectations and potential due to low occupancy, small project scale, low added value, technological content, budget contribution and employment.

From now to 2025, we will continue to focus on resolving hindrances that slow complete and synchronous investment of planned technical infrastructure in industrial and economic zones; accelerate site clearance to create a clean land fund for prospective domestic and foreign investors; and prioritize investment in Nam Can Economic Zone and invite investors to Hoa Trung Industrial Park.

Ca Mau Gas-Power-Fertilizer Complex in Khanh An commune, U Minh district, Ca Mau province 

How is your administrative procedure reform? How is your innovation of investment management, operation and investment promotion?

We have always striven to perform well our functions and tasks and assist businesses and investors in all activities within our jurisdiction, from investment registration and investment implementation in industrial zones and economic zones.

In particular, we always focus on administrative procedure reform to minimize time and cost for investors. We have established a taskforce to receive and process files and deliver settlement results when they carry out administrative procedures at the Ca Mau Economic Zones Authority as well as at other agencies and localities. Specially, we effectively coordinated in handling administrative procedures under the single-window mechanism to create favorable conditions for investors.

Along with administrative reform, we have also focused on digital transformation in investment promotion and management. We receive and transfer incoming and outgoing documents via IOffice software. This has enabled us to reform our professional processes, models and methods to enhance our work performance and reduce settlement time.

At the same time, in order to increase investment inflows, we have applied many consistent solutions like upgrading its investment promotion website; regularly posting complete and timely information on planning and prioritizing projects to draw investment capital; and frequently updating information on specialized investment mechanisms and policies.

We have focused on reforming contents and forms of investment promotion documents; working with relevant departments and sectors to make analytical reports on local production capacity and competitive environment to support investors in market surveys and investment decision making; concentrated on researching and proposing choices of key, large-scale projects with strong effects to unlock local potential strengths to make a detailed list of projects to woo investors.

We have enhanced information exchange, through diplomatic representatives and the Ministry of Planning and Investment at Vietnamese embassies in other countries to send documents and information to inform, advertise and invite foreign investors, especially in target countries such as Japan and South Korea. We have developed plans and mechanisms to approach large domestic and foreign corporations, capable financial and technological investors, and key partners to invite investors to invest in key projects of the province.

What message would you like to deliver to businesses and investors?

With the endeavor of all levels and branches of government and dynamism, radical and timely leadership, administration and direction of the Provincial Party Committee, the Provincial People’s Council and the Provincial People’s Committee, over the past time, the investment climate of Ca Mau province has significantly improved and its Provincial Competitiveness Index (PCI) has been upgraded for six consecutive years.

To further upgrade the local investment environment, we will always uphold the spirit of service and always solve difficulties and problems faced by businesses and investors as its own. Thinking that the success of investors is a measure of our performance, we have proposed supporting investors and businesses as follows:

First, focusing investment resources for completing technical infrastructure, creating a clean land fund for investors in industrial and economic zones.

Second, focusing on accelerating administrative reform, with particular emphasis on solving administrative procedures for investors and coordination of interagency procedures to reduce the time for investors, expected to be slashed by 50%.

Third, flexibly applying policies and regulations to create the most open mechanism when investing in industrial and economic zones in Ca Mau province.

Fourth, promptly receiving and reporting requests of investors; regularly contacting enterprises and investors. We are always willing to listen to and solve investors’ requests anytime, anywhere.

Fifth, building and issuing regulations on coordination in land compensation and site clearance to facilitate and accelerate project progress.

Sixth, building a team of professional, transparent and effective civil servants to improve service quality.

Thank you so much!

Source: Vietnam Business Forum