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High rankings in Provincial Competitiveness Index (PCI) prove the investment potentials of Mekong Delta region Print
Thursday, 05 May 2016 17:00

VIETRADE - Provinces in Mekong Delta region have improved their rankings in PCI thanks to all the efforts brought by strong leadership and their commitment in cooperation.

 

An Giang Province is located in the South-West frontier of Vietnam. The province has favorable conditions in transport by water. My Thoi Port has been recognized to acquire national standards and will be used to explore the Dinh An and Quan Bo Chanh canals to receive ships of 15,000 tons.

 

Bac Lieu Province, with its 56 km coastal line, has potential in developing aquaculture. The province has a big harbor, Ganh Hao economic zone as well as a technology-service zone for shrimp and fish industries.

 

Ben Tre is an easy-to-access province, which is located quite close to Hochiminh City (86 km). The traveling time between two cities only takes two hours thanks to the national high way, which is a favorable factor for transportation and commercial transactions.

 

Can Tho City is one of focal regional economic areas. The City is considered as a regional growth accelerator with a well-developed infrastructure: Can Tho international airport; Can Tho, Tra Noc and Cai Cui ports, also O Mon electric power center.

 

Mekong Delta Region has been proved to have many investment potentials, especially in agriculture and tourism. The value chain of high quality agricultural products has been promoted to strengthen the strong connection between enterprises and farmers. Having the favorable natural characteristics, the region also attracts dozens of million tourists every year.

 

To well receive the investors, the provinces in Mekong Delta region commit to create a favorable and transparent investment environment, facilitate the procedures of business and investment registration. The investors can benefit from different investment policies at district level: for example, the enterprise income tax applied in coastal districts with low economic conditions is 10%, tax exemption in the first 4 years and 50% tax reduction from the 5th to 9th year of operation; for other districts, the income tax is 20% in 10 years, tax exemption in 2 years and 50% tax reduction from the 2nd to 4th year depending on investment sector.

 

Following the data of Foreign Investment Agency (Ministry of Planning and Investment), during the first 10 months in 2015, 9 provinces in Mekong Delta Region received 125 FDI projects with a total value of US$ 2.8 billion. Long An ranked the first place with 102 projects, accounting for US$ 156 million. The most valuable project was the Duyen Hai 2 power plant in Tra Vinh province with a total investment amount of US$ 2.4 billion. Other provinces also obtained investment projects: 5 projects in Tien Giang (US$ 42.6 million); 6 projects in An Giang (US$ 34.7 million); 3 projects in Can Tho (US$ 15.9 million); 4 projects in Vinh Long (US$ 12.8 million); etc.

 

These successes have been obtained thanks to the pro-activeness and political will of local leaders. The improved infrastructures as well as the facilitation during investment process and favorable environment have contributed to the take-off of the Mekong Delta Region.

 

However, despite these achievements, the FDI attracted to this region is still lower than its potential. The region has to improve several aspects to attract more investment, including closer distance between production and market, more efficient infrastructure and telecommunication system, higher quality skilled workers and better employment services, etc. In addition, the interest should be brought not only in FDI but also in domestic investment to ensure a sustainable development of the region.

 

Vietnam PCI in 2015 - Mekong Delta Region

High_rankings_in_Provincial_Competitiveness_Index_PCI

 
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