Amid global economic volatility, investment flows into industrial parks (IPs) in Vinh Phuc province saw notable improvement in the first six months of 2024. Vinh Phuc remains a secure and appealing destination for both domestic and foreign investors. Vietnam Business Forum's reporter interviewed Mr. Vu Kim Thanh, Deputy Director of the Management Board of Vinh Phuc Industrial Parks, regarding its achievements and key tasks for the remaining months of the year.
Thang Long Vinh Phuc Industrial Park - A prime investment destination
Could you please tell us about some outstanding investment attraction results in Vinh Phuc industrial parks in the first six months of 2024?
Through its concerted efforts to enhance investment flows into local industrial parks, the Vinh Phuc Management Board of Industrial Parks issued new investment registration certificates to 29 foreign direct investment (FDI) and domestic direct investment (DDI) projects in the first half of 2024. Additionally, the board revised investment certificates for 23 projects. Investors registered to invest US$339.79 million and VND1,700.03 billion in the six-month period. Specifically, we licensed 21 new FDI projects with a total investment of US$153.93 million. Additionally, 19 existing projects were approved to increase their capital by US$185.87 million. FDI investors registered to invest US$339.79 million in the reporting period, up 4% year on year and equal to 97% of the 2024 plan. Eight new DDI projects were permitted to invest VND772.94 billion and four existing DDI projects were allowed to increase their investment fund by VND927.09 billion. They registered to invest VND1,700.03 billion in the first six months of 2024, down 63% year on year and equal to 113% of the 2024 plan.
Currently, 19 countries and territories are investing in industrial parks in Vinh Phuc province. South Korea is the biggest investor with 185 projects and US$2,522 billion, accounting for 37.7% of the total FDI capital. Taiwan is the second largest foreign investor with 46 projects and US$1.19 billion, accounting for 17.8%. Japan is the third largest with 49 projects and US$1.17 billion, accounting for 17.4%. Thailand comes 4th with 10 projects and US$734.4 million, accounting for 11%. China ranks 5th with 42 projects and US$382.6 million, accounting for 5.7%. Italy, Singapore, British Virgin Islands, Samoa, Seychelles, the Netherlands, Sweden, the United States, India, Belize, Indonesia, Spain, Mauritius and France have also invested in Vinh Phuc province.
Haesung Vina Co., Ltd donates gifts to Vinh Phuc Blind Association
To achieve these results, how has the Management Board of Vinh Phuc Industrial Parks enhanced its investment promotion efforts? Could you outline the specific activities and strategies implemented?
The Management Board of Vinh Phuc Industrial Parks has been actively accelerating investment promotion and attraction efforts for the industrial parks. The promotion has been executed through close coordination with local agencies, employing a diverse, comprehensive, and effective approach. The specific methods include:
Coordinating with VTV Television to propagate administrative reforms in local industrial parks; carrying out cooperation contents with Chungcheongbuk province (South Korea), Pernik province (Bulgaria) and Toscana region (Italy) to 2025 according to Plan 311/KH-UBND dated December 22, 2023 of the Vinh Phuc Provincial People's Committee on functions and tasks of the Management Board of Vinh Phuc Industrial Parks.
Coordinating with relevant bodies to review, synthesize and propose economic cooperation contents/documents with Japanese agencies and businesses at the Vietnam-Japan Economic Forum in Japan from December 16-18, 2023 at the request of the Ministry of Planning and Investment.
Coordinating with the Department of Industry and Trade to organize the “Link to Grow” space exhibition program to promote and introduce potential and connection opportunities between Hanoi and provinces in the northern key economic region; notifying and inviting tenants in IPs to take part in overseas investment promotion programs and forums like the investment and trade promotion delegations in Japan and the United States as well as study programs, field surveys and participations in the 33rd Japan Information Technology Exhibition in Japan.
Receiving and working with leaders of some corporations to learn about investment policies, investment procedures and project implementation in IPs such as Young Poong Group, META Investment Fund and Grandway Singapore Company; receiving and working with the delegation of Chungcheongbuk province (South Korea) and leading the business delegation to visit and work with Powerlogics Vina Company.
Working and exchanging experiences with the Binh Thuan Industrial Zones Authority on investment promotion.
Regularly providing information on policy mechanisms, investment environment and industrial park development to press agencies, media and investors to promote the business and investment climate in its industrial parks.
Jahwa Vina Co., Ltd in Khai Quang Industrial Park
In the remaining months of the year, what key solutions and tasks will you carry out to achieve effective investment attraction in industrial parks?
To improve the outcome of promoting and attracting investment into IPs, in the remaining months of the year, we have developed some key solutions and tasks as follows:
First, continue to effectively implement on-site investment promotion and business dialogue, prepare technical infrastructure in IPs to lure domestic and foreign investors; actively connect, contact and work with potential investors and big companies to learn about the investment and business environment in IPs.
Second, improve the effectiveness of foreign investment attraction according to Resolution 50-NQ/TW, dated August 20, 2019 of the Politburo on orientations for perfecting institutions and policies and improving the quality and effect of foreign investment cooperation to 2030; continue to attract investment as planned for specific industries in IPs and promote priorities for projects with modern, advanced technologies, digital platforms, environmentally friendly technologies, low greenhouse gas emissions, high added value, high-quality labor, strong competitiveness, deep and comprehensive participation in production networks and global value chains; focus on attracting foreign investors to invest in locally advantageous industries and industrial products such as electronics, telecom, digital technology (software, artificial intelligence, new industries, chip manufacturing and semiconductor), automobile, supporting industries, smart manufacturing, smart factory and producing new materials; invest in developing industrial real estate.
Third, coordinate with relevant agencies and localities to bolster the connection between FDI firms and domestic companies; encourage businesses to cooperate, transfer technology, convert from processing and assembling to design and manufacturing, increase added value, create a foundation to attract and develop high-tech industries.
Fourth, enhance the knowledge and information of regional and global investment situations and trends; make accurate forecasts to have appropriate, flexible and timely investment promotion, appraisal and investment licensing solutions and create favorable conditions for foreign investors.
In the last six months of 2024, Vinh Phuc industrial parks aim to attract 3-5 FDI projects with a total investment of US$50-70 million. Additionally, they plan to secure 2-3 DDI projects with an investment capital ranging from VND1,000 to 1,200 billion.
Thank you so much!
By Nguyet Tham, Vietnam Business Forum
Vietnamese
October 2024
Hanoi