Vinh Phuc: Secure, Attractive and Reliable Investment Destination

With its strengths and strategic leadership, Vinh Phuc province has become a top destination for investors. It offers favorable conditions and quickly resolves obstacles, making it a secure and attractive choice, especially for advanced technology and eco-friendly projects.

Khai Quang Industrial Park

Accompanying and supporting investors

With the motto " Investors in Vinh Phuc are also its citizens, and their success is the success of the province", Vinh Phuc province has actively supported and facilitated companies in exploring investment opportunities and conducting business locally. Since becoming the Chairman of Vinh Phuc Provincial People's Committee, Mr. Tran Duy Dong and the provincial delegation have consistently visited local industrial parks (IPs), engaging with investors and major corporations in Vinh Phuc to understand their perspectives and aspirations. In his meetings with investors, Mr. Tran Duy Dong assured that Vinh Phuc province is committed to providing optimal conditions for businesses. The province will streamline administrative procedures and empower the Management Board of Vinh Phuc Industrial Parks to manage these processes through a single-window system. Vinh Phuc is dedicated to addressing challenges and obstacles in project implementation and business development to ensure timely progress.

Assigned by Vinh Phuc province to administer investment promotion and attraction in industrial parks, the Management Board of Vinh Phuc Industrial Parks has consistently enhanced the administration of industrial parks by aligning with provincial government directives that emphasize balanced economic development and social security. The board has prioritized improving social infrastructure, services, and public utilities for workers, ensured environmental protection, and selectively attracted investors. Additionally, it actively meets the infrastructure needs of companies and new projects, particularly large-scale ventures with advanced technology.

Besides, the board has accelerated administrative reform, improved the investment and business environment, paid attention to supporting companies and investors in understanding the investment and business environment as well as the project implementation process and in running their projects; promptly resolved obstacles, built harmony and stability in labor relations in companies; actively eradicated unnecessary administrative procedures to reduce time, effort, and cost for investors; and directed infrastructure investors and tenants in industrial parks to strengthen security and order and create an effective, safe and transparent investment and business environment.

Nearly 500 investment projects in IPs

As of July 15, 2024, Vinh Phuc saw 495 valid investment projects in its industrial parks, including 118 DDI projects with VND37,724.64 billion of investment capital and 377 FDI projects with US$6.72 billion.

In the first seven months of 2024, Vinh Phuc province-based IPs attracted 24 new FDI projects and witnessed 24 existing projects to add their capital base, with a combined registered capital of US$377.2 million (US$173.9 million from new projects and US$203.3 million from existing projects), equal to 90% of the value a year earlier and 108% of the 2024 plan. The province also licensed nine new DDI projects and allowed five existing projects to raise their capital, with an aggregated investment capital of VND2,960.53 billion (VND1,894.51 billion from new projects and VND1,066.02 billion from existing projects), equal to 58% of the value a year-ago period and 197% of the 2024 plan.

In addition to better investment results, Vinh Phuc IPs also witnessed outstanding efforts of companies in investment and business activities. By July 15, 2024, Vinh Phuc IPs had 413 projects in operation (333 FDI projects and 80 DDI projects), accounting for 83.43% of total projects. In July, nine more DDI projects went into operation. Among the 82 projects that have not yet commenced commercial operations, 13 are under construction and installing equipment (2.63% of all projects), 61 are finalizing initial procedures (12.32%), four are undergoing land compensation and site clearance (0.81%), and four are experiencing delays (0.81%).

Additionally, the disbursed value of investment projects is also optimistic. In July, FDI projects spent US$46.52 million, bringing the total disbursed value to US$276.18 million in the first seven months of 2024, up 6% year on year and equal to 79% of the full-year plan. As of July 15, 2024, the disbursed value of FDI projects was US$4.11 billion, accounting for 61.2% of the total registered investment capital. In the meantime, DDI projects in IPs spent VND1,491.71 billion in July 2024, bringing the total disbursed value to VND2,761.75 billion in the first seven months of 2024, as many as 3.2 times higher than the value a year-ago period and equal to 184% of the 2024 plan. As of July 15, 2024, DDI projects in IPs spent VND16,329.81 billion, accounting for 43% of the total registered investment capital.

Recent investment attraction and business development results showed that Vinh Phuc continues to be a safe and reliable investment destination for long-term investors. At the same time, these outcomes have actively contributed to realizing the goals set in the resolution of the 17th Provincial Party Congress: “By 2025, Vinh Phuc will strive to become a developed industrial province, one of the industrial, service and tourism centers of the region and the country; the average real income per capita will be higher than the country, reaching VND80-85 million.”

In the coming time, Vinh Phuc will advance its investment promotion efforts by diversifying methods and focusing on existing investors. The province will enhance strategies for identifying and engaging businesses in prioritized sectors, directly presenting projects and local advantages. It will also host domestic and international investment promotion events and actively pursue targeted investment goals.

At the same time, the province will prioritize large-scale projects that offer high added value, utilize modern eco-friendly technology, and generate significant ripple effects. These projects should also have the potential to integrate with global production and supply chains. Vinh Phuc aims to attract renowned domestic and international corporations with robust financial resources to invest in the province.

By Manh Dung, Vietnam Business Forum