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North Central Area - Potentialities And Investment Chances - Part 2 PDF Print
Friday, 11 January 2013 07:08

VIETRANCA_-_Potentialities_And_Investment_Chances_-_4DE - There are many unexploited potentialities

The North Central Area has diverse reserves of minerals, in which, there are 60% of iron ore, 80% of zinc, 100% of chromite, and 40% of limestone in comparison with that of the whole nation. There are valuable mineral mines, such as iron mine in Thach Khe (Ha Tinh), chromite mine in Co Đinh (Thanh Hoa), zinc mine in Quy Hop (Nghe An). Besides, the area also has a reserve of granite and limestone up to billions tons. These are favorable conditions for the development of mining and metallurgy industries and construction materials production.


As for forestry, the North Central Area owns 3,436 ha of land, in which, there are 1,633 ha of forest land, nearly 1,600 ha of non-forest land which is a large potential for the development of forestry. As for marine economy, the North Central Area has about 670 kilometers of coastline with many estuaries, and a large continental shelf with many natural resources. The estimated reserve of fish is about 620,000 tons, shrimp 2,750 tons, cuttlefish 5,000 tons, which are very favorable for the development of general marine economy.


The North Central Area also has favorable conditions for the development of tourism, such as beautiful beaches of Sam Son, Cua Lo, Nhat Le, etc., many particularly interesting natural landscapes, many cultural and historical monuments and valuable archeological works. This is also home to many special traditional cultural festivals. Besides, the natural reserves, national parks have been widening, such as Bach Ma, Ben En, Vu Quang, Anh Son, Thanh Thuy, etc., especially, the natural forest and Phong Nha Cave.


Besides the natural advantages, the North Central Area also has other advantages, such as the labor force. The current population of the area is about 11 million people, 6 million out of which are in working age, making up 13% of the whole nation’s. The working age population is expected to reach 12.5 million people by 2015, making up 63% of the Central Region’s and 12% of the whole nation’s labor force.


In recent years, the potentialities of the area have been aroused with the strong development of many coastal economic zones, such as Nghi Sơn Economic Zone (Thanh Hoa); Đông Nam Economic Zone (Nghe An), Vung Ang Economic Zone (Ha Tinh); Hon La Economic Zone (Quang Binh); Chan May – Lang Co Economic Zone (Thua Thien-Hue). Besides, the area also has three border gate economic zones of Lao Bao (Quang Tri), Cha Lo (Quang Binh), and Cau Treo (Ha Tinh). These are advantages for the investors to invest in the area. Because, these economic zones have been supported by the State on synchronous investment in infrastructure and the investors will benefit preferential treatments.


However, the provinces in the area have not taken advantages of these potentialities to attract investment and develop the economy. Therefore, by September 2011, there were only 243 foreign direct investment (FDI) projects with the total registered capital of about US$19.9 billion, making up nearly 10% of the FDI registered capital of the whole nation. This is a rather small number in comparison with the potentialities of the area.


According to Mr. Do Nhat Hoang – director of the Foreign Invest Department – although there are not many in number, the investment projects in the North Central Area have a large scale in comparison with the whole nation. The current economic situation will put certain influence on the investors’ investment–trade plans. However, this is also the good time for the investors to acknowledge and find new favorable lands to invest more effectively. Recently, investors to the Southern and Northern Regions have thought of finding new lands to invest. While, the North Central Area is a potential area but there is not much foreign investment. That is a good chance for those investors who really want to find more suitable areas. Because, this area will repair the difficulties of the previous invested areas, such as “cramped space,” environmental pollution, human resources shortage, etc.


In order to attract investment in the North Central Area

This is a difficult problem but not without solutions. According to Deputy Prime Minister Nguyen Xuan Phuc, in order to attract investment, the North Central Area needs to do the synchronous investment. But this does not mean the spread and unfocused investment, or to invest at any cost. The area needs to determine what its advantages are over other areas, and then speed up investing into those fields. However, the area should notice that development is the essential requirement, but this does not mean developing at all costs, and, besides developing industry, they must also develop agriculture – the area’s advantage, the one that has brought direct interest to the people. That is the stable development. The ministries and branches have to timely support the North Central Area, at the same time, the localities in the area have to create a clear investment environment and create good chances for the true investors to invest in.


Deputy Minister of the Ministry of Planning and Investment – Dang Huy Thong – stated that, the North Central Area have to put interest on enhancing the human resources, determining the key portfolios, and concentrating on investment attraction; to build the infrastructure synchronously to create favorable conditions for the investors; taking advantages of the available advantages of the area.


The representative of the World Bank, Mrs. Victoria Kwakwa, has also highly appreciated the North Central Area’s potentialities. She thinks that, the North Central Area has not made a breakthrough in investment attraction because it does not know how to take advantages of its potentialities. According to her, the co-operation between the localities of the area should be enhanced in order to create an agreement towards building an attractively investing environmental area, to enhance the fair competition and build a trade mark for the whole area. The World Bank will continue to have positive supports to the North Central Area in order to make it an attractive destination to investors.

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