Prospects of FDI attraction in northern region

Thursday, 2021-10-07 17:14:12
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The production of electronic components at Bumjin ElecTronics Vina Co., Ltd (Dong Mai Industrial Park, Quang Yen district, Quang Ninh province). (Photo: QUANG THO)
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NDO - Along with the synchronous implementation of solutions to control the COVID-19 pandemic, northern provinces and cities have made efforts to attract foreign direct investment (FDI) projects, leading to increasing FDI capital since early this year.

Active preparations to welcome big projects

The Management Board of the Hai Phong Economic Zone granted the investment certificate to LG Display Vietnam Hai Phong (LGD) on August 31 which supplemented additional capital of US$1.4 billion into its current project. The adjustment has made LGD become the largest investment project in Hai Phong, with total investment of US$4.65 billion.

In July 2021, the Management Board of Industrial Parks in Vinh Phuc province also issued an investment certificate for a paper factory project invested in by the Vina Kraft Paper Co., Ltd., with total registered capital of US$611.4 million.

In the past nine months, the total amount of FDI into Hai Phong has reached nearly US$2.85 billion, exceeding 14% of the 2021 target and 3.2 times higher than the same period last year. Quang Ninh province has also attracted about US$1.86 billion, reaching 148% of the yearly plan while Vinh Phuc province has seen total registered capital of US$928.99 million, up US$88 million over the same period last year.

Ninh Binh province has also witnessed an increase of 15.19% in registered FDI capital while Thai Binh province has attracted five new FDI projects, with registered capital of about US$420 million, seven times more than the same period last year.

Head of the Management Board of the Hai Phong Economic Zone Le Trung Kien said that Hai Phong has actively prepared the best conditions to welcome large projects, including creating a fairly synchronous technical infrastructure in terms of transportation, industrial park infrastructure, support services, security and order, and labour forces.

According to Chairman of the Quang Ninh Provincial People's Committee, Nguyen Tuong Van, the creation of favourable conditions for administrative procedures has helped strengthened investors' confidence in the investment environment of the province.

Meanwhile, Chairman of the Vinh Phuc Provincial People's Committee Le Duy Thanh said provincial leaders have regularly listened and quickly solved difficulties for enterprises while gaining control of the COVID-19 pandemic.

Continuing to accompany enterprises

Hai Phong has so far attracted more than 400 FDI projects, with total investment of nearly US$18 billion. The total investment capital of FDI enterprises in the first nine months of this year accounts for more than 30% of the total investment capital of the whole city while FDI enterprises contributed more than 25.6% to the total domestic budget revenue of the city.

The production of washing machines at LGE Company in Trang Due Industrial Park (Hai Phong). (Photo: NGO QUANG DUNG)

Due to the effective prevention and control of the pandemic, production and business activities of FDI enterprises have not been stagnant, creating stable jobs for more than 180,000 workers while the revenue of FDI enterprises in Hai Phong still increased by 19%.

Hai Phong aims to attract US$25 billion of FDI capital in the 2021-2025 period. To achieve this goal, the city is promoting infrastructure investment projects, especially projects on modernising the transport system and expanding industrial zones. The city has also paid special attention to providing housing for workers, training human resources, and ensuring social security and order.

General Director of Jinko Solar Vietnam Huang Jinxing said that after receiving the investment certificate of the Jinko 1 project, his company received an investment certificate for Jinko 2 project only six months later. He expressed this delight and thanks for the attention, support and companionship of Quang Ninh province.

To support FDI enterprises, Quang Ninh has established a special working group to proactively approach enterprises when they intend to invest in the province while shortening administrative procedures and establishing a 24/7 information mechanism to facilitate enterprises.

Along with controlling the COVID-19 pandemic, Thai Binh province has also focused resources on completing infrastructure of the Thai Binh Economic Zone, reforming administrative procedures, and improving the business environment.

Ninh Binh province is also making efforts to simplify administrative procedures to invite investors in the areas of infrastructure and high-technology to create the driving force for further development.

According to the Foreign Investment Agency (Ministry of Planning and Investment), as of September 20, 2021, Vietnam had posted total newly registered capital, supplemented capital and share purchases by foreign investors of US$22.15 billion, up 4.4% over the same period in 2020. This is a good sign regarding the prospects for attracting FDI in Vietnam in general and to the northern provinces in particular.

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