Many projects are underway in Binh Dinh province.

One of five provinces in the Central Coastal Economic Zone, Binh Dinh has plenty of socioeconomic development potential and is fast becoming a destination for investors. Many big projects and industrial zones are now underway. Vietnam Economic News’ reporter Nguyen Tuan spoke with Le Van Tam, the director of the Binh Dinh Province Department of Planning and Investment.

* Binh Dinh has recently become something of an investment destination in central Vienam. Why?

In recent years, Binh Dinh has indeed attracted investment. In 2007, when the new Investment Law and Enterprise Law took effect, the province issued investment certificates for 71 projects repesenting VND8.8 trillion in registered capital. Of these, 60 were for domestic investment projects with a total of VND7.5 trillion in registered capital and 11 were for foreign direct investment (FDI) projects with US$80.4 million in capital. In the Nhon Hoi Economic Zone five domestic projects have been licensed representing VND4.46 trillion in total registered capital and licenses were issued for two FDI projects with US$49 million. Over the years (until the end of 2007), Binh Dinh issued licenses for 31 FDI projects with total registered capital of US$385 million and 101 domestic investment projects with total registered capital of VND9.1 trillion.

Last year the number of licenses issued for projects and the amount of investment capital involved rose considerably. In the first quarter of this year, investment licenses were issued to allow the Saigon Invest Group to build a VND8.8 trillion pulp mill, for someone to build Section C of the Nhon Hoi Industrial Zone for VND510 billion, and then there’s the Saigon – Binh Dinh Energy Joint Stock Corporation’s VND527 billion wind power plant in the Nhon Hoi Economic Zone. Licenses were also issued for domestic projects including titanium treatment, wood processing and raising dairy cattle. Licenses were issued for several industrial garment assembly plants that would involve total registered capital of US$1.5 billion thermopower plant that the Saigon Invest Group and International Power, a UK power company, are to move forward on.

* How can Binh Dinh make better use of its roads, water and air transportation?

Binh Dinh is geographically a center for regional and international trade and we have the nearest port to serve Tay Nguyen (the Central Highlands), southern Laos and northeastern Cambodia. AT the third Greater Mekong Sub-region Summit (GMS), which was held recently in Vientiane, Laos, Quy Nhon in Vietnam was again recognized as one of five gateways to the sea in the region. On April 14, 2008, two five-star trains started making the journey between Quy Nhon in Binh Dinh and Ho Chi Minh City. We understand that soon Vietnam Airlines is to begin flying into Phu Cat Airport. Binh Dinh wishes to make the most of it marine resources, mineral resources, eco-tourism, cultural and historical heritage, human resources, land fund and opportunities for investment in the Nhon Hoi Economic Zone. However, we are facing a few problems. Regional and international transportation (particularly by air) is not what one might call convenient, our workforce is both low in number and unskilled and the province’s schools, worker training facilities and healthcare facilities leave much to be desired.

We are quite aware of these problems and we are working to find ways to attract investors and develop the economy and society.

First, we would like to get in place infrastructure, both economic and social, before we try any harder to get investors to come to the province.

Second, we need to draw up a list of projects that we’d like to see investors come in. We could publicize this in forums, conferences and workshops that could be held in the province or anywhere.

Third, we need to put some comprehensive and transparent laws down on paper. The province has policies that are to attract talented people, encourage managerial training, partially finance worker training, support trade promotion activity and branding, subsidize infrastructure construction in industrial zones and industrial groups and assist in waste product treatment.

All of Binh Dinh’s preferences are regulated by the central government and we emphasize close but flexible observation of the law. Besides investment assistance, provincial policies are meant to make investors responsible for their actions.

Fourth, we need to improve our administrative practices and make it easier for investors to get through all the paperwork. In recent years, Binh Din has scored better than most areas in Vietnam on the provincial competitiveness index (PCI) because its investment-business environment is fairly good.

* In what areas would you like to see increased investment?

At the 17th Province Party Congress of 2005, targets were set for the next five years with a vision for even later years. We’d like to see 1) an acceleration of the pace of investment in the Nhon Hoi Economic Zone, 2) Quy Nhon become an international industrial, trade and exchange center serving central Vietnam and the Central Highlands, 3) transportation that would link us with neighboring areas along the north-south and east-west axes and 4) a development of forestry-agriculture-fishery processing, handicrafts, construction materials, leather footwear, garments, mechanical engineering, deep water seaports, oil refinery and petrochemicals, electric applicances, electronics, power, tourism, maritime service, trade, financial services, banking and posts-telecommunications. Although economic development is the prime goal, social development and environment are also of importance. We give priority to investment in mountainous areas and we’d like to see increased employment, a reduction in hunger and poverty and improvements in culture, education and heathcare. We will be working on solving environment problems and improving the quality of our workforce to meet current and future needs.

• Source: Vietnam Economic News