Vinh Phuc province is striving to become a modern industrial province by implementing policies to diversify investment fields and attract multinational corporations and strategic investors. The influx of large investment projects and multinational corporations has not only made a significant contribution to the province’s economic growth.
TKr Manufacturing Vietnam Co, Ltd, a Japanese-owned company in Ba Thien II Industrial Park
In line with the Resolution of the 13th Party Congress and the Resolution of the 17th Provincial Party Congress, Vinh Phuc is currently undergoing a transformation of its growth model and economic structure. The province is shifting its focus from quantity to quality, from low technology content and low added value to higher technology content and added value. In addition, Vinh Phuc is revising its investment attraction strategy in a proactive, positive, and focused manner. The province is concentrating on key industries and fields based on effective cooperation with strategic investment partners. The aim is to turn Vinh Phuc into a high-tech manufacturing industrial center not only in Vietnam but also in the region and the world.
By revising the investment attraction strategy, aiming at large investors and multinational corporations with advanced, new technology, and high added value, Vinh Phuc is not only improving its socio-economic development but also facilitating the formation and development of innovation centers and production chains. This will increase the localization rate and added value of domestic businesses, organizations and individuals, enhancing the competitive advantage of Vinh Phuc province in the context of integration.
Vinh Phuc has already attracted large projects and strategic investors, as well as investment from multinational corporations such as Toyota Vietnam Company, Honda Vietnam, and Piaggio Vietnam. These investments have played a vital role in shaping the current economic picture of the province.
Targets in period 2022-2030
Vinh Phuc province has set ambitious targets for 2022-2030. These include attracting an additional US$2.0-2.5 billion of FDI capital and VND20-25 billion of DDI capital. The province aims to achieve specific goals according to Resolution 50 of the Politburo on directions to improve institutions and policies, enhance the quality and efficiency of foreign investment cooperation by 2030. Vinh Phuc also aims to increase the proportion of investment capital from countries and territories such as Japan, Korea, Singapore, China, Malaysia, Thailand, India, Indonesia, France, Germany, Italy, the Russian Federation, the UK and the United States to 80% by 2030. The province is also targeting to attract 1-5 multinational corporations among the 500 largest corporations in the world as ranked by Fortune Magazine (USA) to invest in the province. Additionally, Vinh Phuc is aiming to attract corporations with financial potential and enterprises in the top 500 largest enterprises in Vietnam to invest in supporting industrial sectors.
Priority areas to attract investment
Vinh Phuc province has identified priority areas to attract investment. In terms of industry, the province will promote and attract enterprises to invest in chains, develop the automobile, motorcycle, mechanical engineering, high-tech industries, electronics, telecommunications, and food processing industries and supporting industry projects in these fields. In terms of agriculture, the province will prioritize the development of high-tech agriculture, clean fruit and vegetable production projects and high-tech livestock and poultry farming, and agricultural product processing projects along the value chain. In terms of tourism and services, the province will favor health care, education, high-quality vocational training projects, tourism projects, hotels and restaurants, and high-end resorts. In terms of infrastructure, Vinh Phuc will give priority to investment projects in the infrastructure of industrial zones and clusters. The province will focus on investment in specialized infrastructure that creates connections and links industry clusters. Additionally, Vinh Phuc will prioritize wastewater treatment projects as well as industrial and domestic waste management.
Realizing investment attraction
Vinh Phuc province is committed to achieving and surpassing its investment attraction goals for the current period. To this end, the province is innovating its investment promotion activities and enhancing the operational efficiency of the Support Team of the Chairman of the Provincial People’s Committee to remove difficulties and obstacles for businesses. Vinh Phuc will issue various mechanisms and policies to stimulate investment projects in the province. Specifically, in the period 2022-2025, Vinh Phuc will implement three groups of solutions, including:
Developing mechanisms and policies to improve the investment and business environment by: Promoting administrative procedure reforms in all fields; Ensuring transparency of state management activities on investment; Strengthening connection and integration of online public services associated with the development of digital government, digital economy, and digital society.
Improving competitiveness, innovating investment promotion activities; Building and developing synchronous infrastructure; fostering science, technology, innovation, and improving the quality of human resources; Enhancing the effectiveness of investment promotion activities and attracting selective investment.
Strengthening state management, supporting investors and resolving difficulties and issues for investors.
In addition to its existing advantages of geographical location and technical infrastructure, one of the decisive factors in Vinh Phuc’s success in attracting investment is the dynamism, initiative, responsiveness, and closeness of the entire government system at all levels in Vinh Phuc province in connecting and building trustworthy, sincere, and effective partnerships with investors. This has contributed to creating development breakthroughs for Vinh Phuc in the future.
By Tran Ngoc, Vietnam Business Forum
Vietnamese
October 2024
Hanoi