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Nhon Hoa industrial zone in An Nhon district. Photo V.L |
The central province of Binh Dinh attracted 60 domestic projects capitalized at over 12 trillion VND and four FDI ones worth 57.12 million USD last year despite the global economic recession.
Achievements
So far, 34 FDI projects, including 6 joint venture and 28 100 percent-foreign owned capital, have been invested in Binh Dinh with the registered capital of over $470.75 million.
Las year saw four FDI projects with the total capital of $57.12 million, of which two were poured into the Nhon Hoi Economic Zone (EZ).
Also, the Nhon Hoi EZ attracted domestic projects worth nearly 7 trillion VND and there were 21 projects invested in other industrial zones, let alone 30 ones licensed to invest in Binh Dinh last year.
Since the new Law on Investment came into effect in 2007, the province has granted licenses to 229 projects with the total registered capital of 33.496 trillion VND, including 26 in Nhon Hoi EZ and 67 in industrial zones.
Result assessment
While the number of projects invested in Binh Dinh, particularly FDI ones, fell short of expectations, the attraction of domestic projects showed positive signs. The number of domestic projects were 6-7 times as many as FDI ones in three years, from 2007-2009.
In late 2009, the Nhon Hoi EZ has attracted a series of projects, proving that its infrastructure is now ready for investment.
However, most FDI projects in Binh Dinh are small-scaled ones. The 2008’s industrial production value of the foreign-invested sector only contributed to 90 billion VND, accounting for 1.6 percent of the province’s total industrial production value, and the export turnover recorded at nearly $13 million.
The FDI industrial production value reached 103 billion VND and the export turnover was up $15 million last year.
FDI projects have many advantages of capital, advanced technologies, and experience, playing a core role in strengthening the development of different industries. The province has called for some large-scaled ones, expected to contribute to the province’s socio-economic development.
Shortcomings
Due to the global financial crisis and economic recession, investors faced many difficulties in 2009. Alongside this, some seeking investment opportunities in Binh Dinh were not capable of investing registered projects.
Binh Dinh is not absolutely ready to create the most favorable conditions for investors to some extent. The province hasn’t kept ahead in planning, let alone the administrative reform which is still problematic at particular stages and some related issues.
Measures
Binh Dinh is expected to implement many measures, aiming to improve the investment environment and make a breakthrough in attracting investors this year.
Functional bodies are now being asked to complete plans, helping the province’s investment promotion centre have advantages when calling for investment. Basing on approved plans, the approval for each project will be more advantageous.
Binh Dinh People’s Committee and International Finance Corporation (IFC) signed a memorandum of understanding in early August, 2009.
Accordingly, IFC has assisted the province in analyzing issues and proposing measures to strengthen the inter-body coordination and simplify the administrative procedure for investment, land, and construction.
As a result, the regulations on procedure for investment were completed in late December last year. They are expected to be promulgated in the coming time to better serve investors.
To attract more projects, the land price must be reasonable and competitive, ensuring the benefits of both province and investors.
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