The increase of FDI capital to the industry of Vinh Phuc

19/10/2018

The Law on Foreign Investment in Vietnam has been approved for 30 years. During that time, many FDI enterprises came to Vinh Phuc seeking for investment, production and business opportunities. The flow of FDI capital to Vinh Phuc has gradually increased over the years.

Mr. Nguyen Van Tri, Chairman of the provincial People's Committee said: "Several decades ago, Vinh Phuc was a poor province with weak infrastructure and small farming land. Dealing with that situation, the provincial Party Committee determined to quickly shift the economic structure and focus on hunger eradication and poverty reduction, step by step turned Vinh Phuc into a rich province.”

At the provincial Party Congresses, especially the XII Congress in the term of 1996-2000, Vinh Phuc identified “actively shifting the economic structure from agriculture to industry, service development” as its main task.

Adhering to the task and concretizing the resolutions, the branches and localities in the province have effectively implemented key programs and projects; at the same time, quickly focused on planning industrial parks (IPs) and industrial clusters, calling for investors having capacity in finance, science and technology, quality product production, high competitiveness…

Thanks to the favorable policies and conditions for investors, Vinh Phuc has attracted many large and prestigious groups such as Toyota, Honda, Daewoo Bus, Piaggio, Sumitomo ... In 1998, Vinh Phuc had only 8 FDI projects; until the end of 12/2017, the province had 255 valid projects with a total registered capital of over US$ 3.75 billion. Up to the end of 8/2018, this number was 305 with over US$ 4.3 billion.

If previously depending on the Central budget, until 2004, Vinh Phuc was self-balanced and even contributed to the Central budget. In 2009, the budget revenue exceeded 10 trillion dong; in 2014, the province reached a new milestone - exceeded 20 trillion dong. In 2016, Vinh Phuc recorded a budget of more than 31 trillion dong. In 2017, because the number of imported cars increased, the output of assembled cars in Vinh Phuc was reduced, but the province still collected more than 25 trillion dong. The majority of the provincial revenue structure is from FDI enterprises.

According to the report of the provincial Management Board of IPs, Vinh Phuc has 18 IPs approved by the Prime Minister, 11of which were established. The enterprises in IPs are stable, creating jobs for 82,000 laborers and the majority of workers working in FDI enterprises, with the income of ordinary labor from 6 to 8 million VND / person / month. The IPs having a large number of workers are Khai Quang IP with about 40,000 labors, Ba Thien 1 and Ba Thien 2 with 20,000, Binh Xuyen 1 with about 10,000.

Mr. Do Dinh Viet - Director of the Planning and Investment Department said that Vinh Phuc had successfully attracted FDI capital and enterprises due to the great concern of the province to the improvement of investing environment with the motto: "All investors to Vinh Phuc are the provincial citizens. Their success is the province’s success and pride". Besides well carrying out the work of land clearance, preferential land rent, infrastructure of IPs have been built synchronously; since 2014, the province has developed the program and issued the promotion plan each year in accordance with the regulations of the Government, so investment promotion activities have been implemented uniformly.

Mr. Satoru Wachi - Deputy General Director of Thang Long Vinh Phuc IP Co., ltd said, “Before deciding to invest in Thang Long Vinh Phuc IP, many years ago, the company had studied about investing environment in 30 localities in 3 regions of Vietnam where have different advantages and disadvantages. Finally, we chose Vinh Phuc because we realized that Vinh Phuc has many advantages to develop IPs such as: low land rental; reasonable investment in infrastructure; abundant labor force; good relationship between investors and local people.”

Mr. Akito Shiraishi - General Manager of Overseas IPs of Sumitomo Corporation affirmed that Vinh Phuc had a good investing environment. The Group and Thang Long Vinh Phuc IP will focus on deploying and implementing the project as committed; simultaneously, will have specific activities to attract high-tech investors into operation, contributing an important part in the job creation for laborers, promoting the socio-economic of Vinh Phuc development.

It can be said since the approval of the Law on foreign investment in Vietnam, the picture of attracting FDI in Vinh Phuc has many bright colors. Vinh Phuc has emerged as an attractive destination for foreign investors.

Besides the results, FDI inflow to Vinh Phuc still has shortcomings. This is the transfer of technology and production linkages between domestic enterprises and FDI enterprises that is fuzzy. Enterprises recruit many unskilled workers without vocational training; many workers are at risk of being laid off when they are about 40 years old. The problem of industrial waste, waste water, and waste gas in many FDI enterprises affect the environment and people's life. ... These are problems that require the province to have new appropriate solutions and policies to promote the industry in the coming time.

By Nguyen Trong Lich (baovinhphuc.com.vn)

 

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