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Foreign investment attraction in Hung Yen PDF Print
Wednesday, 17 April 2013 11:00

VIETRAHung_Yen_FDI_attrationDE - Hung yen is a province sitting in the Northern Key Economic Region which has been ascertained as an economic growth engine driving on industrialization, modernization of the nation. This region is a cutting edge for convenience in economic integration with Asia and the world through expansion of import-export and strengthening of foreign investment attraction. Sharing in the nation’s development trend from 1997 to this date, the province benefits from the fruit of state infrastructures investments such as airports, seaports, telecommunication, energy.

 

Hung Yen Province has achieved speedy socio-economic development: fast economic growth, economic structures, investment and labor positive structural shifts. People’s lives are improving significantly, political security being maintained, social order and safety, reinforced and developed.

 

In 2008, Hung Yen hosted 41 FDI projects recently granted investment licenses with registered capital of USD 246.8m (USD 64.05m outside IP, USD 182.76m inside IP). Investment licenses issued in 2008 increased in number compared to those in previous years, 28% more than 2007; the number of projects increased by 28%, the total registered capital increased by 28.5%; the average invested capital per project also increased.

 

Investment projects focused mainly on such fields as production, subcontracting electrical, electronic products, mechanical engineering, manufacture of electric component parts and equipment, electronic auto spare parts … Investors mainly came from Japan, Korea, China, Taiwan … Large FDI projects tended to converge on concentrated IPs with uniform infrastructures. Hung Yen Provincial administration Board of IP has just granted investment license to the project “manufacture of high-tech electronic components, equipment” by Canon Electronics INC (Japan) with USD 63m registered capital. Also, last year, the province issued certificates of renewed registration to 12 foreign investment projects, business statutory changes from 2 member-partnership limited responsibilities to joint stock company.

 

Therefore, to this date, there are in the compass of Hung Yen province 153 valid FDI projects, of which 100 are in business operation totaling USD 913m in registered capital (USD 504m by enterprises outside IPs, USD 409m by enterprises inside IPs); paid-up capital by these projects amounts to USD 354m (38.3% of registered capital).

 

FDI projects kept assured disbursement speed in advance of pledge time in investment certificate, which was especially true with those implemented inside IP, whose paid up capital rose in consecutive years. Nevertheless paid-up capital remained low proportionally to registered capital (38.8%). The main reason was that large FDI projects with large investment capital, mostly initiated in the period 2006 – 2008, are in the process of disbursement and development; projects registered in previous years, now in operation, have low or medium size capital investment. Moreover, the 2008 world financial crisis has caused certain FDI enterprises difficulty to access capital markets, resulting in low paid-up capital disbursement.

 

Overall FDI enterprises in Hung Yen Province compass, owing to their financial strength, active market search, product competitiveness, keep on steady business development, though their growth somewhat slows down, yet remains still higher than the national average Taeang Vietnam with 134% growth, Cargill Animal Feed Company with 105% growth are cases in point…

 

FDI enterprises in Hung Yen have positively pitched in economic structures shifting, technology renovation, industrial development incremental investment, national budget income base enlargement. In 2008 industrial output value hit VND 15,600bn (FDI industries shared in 5,820bn) export revenue was USD 443m (FDI sector share came to USD 178.6m). Total investment capital by society at large in 2008 reached VND 9,100bn (of which FDI made up 18%). FDI projects in business operation helped in jobs creation for over 25,000 labor.

 

Several research institutions forecasted that the world financial crisis could extend to 2009, sparing no victims that FDI capital would be. Hung Yen’s plans for 2009 will be: focused drive to production growth of FDI firms, capitalization on competitive products, assuring domestic and international development, speeding up implementation of licensed projects, facilitating production expansion in business enterprises, promptly stewarding of newly invested projects into business operation, development promotion of high-tech products, products in agricultural, rural usage, processing industries, supportive industries … There should be acceleration of infrastructures building in IPs and ICs to host investment projects, IP infrastructures investors should be motivated to engage in development of the southern part of the province so as to create an economic balance between various areas. Building new urban centers, supportive service centers catering to concentrated IPs is to be hastened.

 

Strongly focus on administrative reform, system build-up, creation of a socio-economic-endeavorfriendly legal frame work should be heeded, not to overlook perfection and efficiency boosting of local public services such as customs, taxation, legal consultancy, investment guidance. Promply and effectively implement of Vietnam quality management system (ISO 9001-2000) in provincial administrative services is to be done.

 

Intensification of guidance, support, motivation to IP infrastructures investors: Pho Noi A, Pho Noi B textile-garments, Minh Duc, Thang Long II, and Minh Quang, speeding up land clearance, infrastructures construction according to approved plans and pledged time schedule.

 

Concurrently, inspection, strict and effective check of investment certificate issuance, labor regulations clauses, environment regulations should be carried out when the enterprise starts business operation.

 

On the basis of general socio-economic development planning to the year 2010 and succeeding years with adjustment, Hung Yen Province has gone into detailed plans and systems building of IPs, ICs, in readiness to host investors, combining local socio-economic development plans with regional, divisional development plans. Positive propaganda, publicity – promotion are initiated to raise awareness of cadres and local people availing industries convertible lands, as regards rights and obligations in acceptance of incoming investment projects. They are also to raise concern of the authorities and work division officials to local labor, therefore to better carry out land clearance compensation, assuring project implementation progress. Hung Yen will carry on focusing and building up of investment promotion programs, development of channels and targets of key investment in each stage, so as to forcefully push forward investment mobilization and promotion, particularly in projects of large-scale capital, modern technology, positively impacting development of various endeavors and fields.



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