Hoang Dinh Phi, head of the Van Phong Economic Zone Management Board, spoke to Vietnam News Agency about the mechanisms and policies that have been put in place to attract high-tech investment projects.
What has the Van Phong Economic Zone (EZ) done to attract domestic and foreign investment?
The Van Phong EZ has achieved positive results since its establishment in 2006, especially from 2015-17.
The EZ has already attracted 156 investment projects, including 130 domestic projects and 26 foreign-invested ventures with total registered capital of about US$4 billion. Of which, the total disbursed capital in the EZ has reached $663 million, accounting for 17 per cent of the total registered capital.
Eighty-one projects have been put into operation with capital of about $606 million, while 75 other projects have been granted investment certificates with total registered capital of $3.4 billion, and they have disbursed $57 million.
They include the Van Phong 1 Thermal Power Plant Project operated by Japan’s Sumitomo Corporation with total investment capital of $2.58 billion. Construction of the plant is expected to start early next year.
There are 42 projects involved in shipbuilding, port construction, aquaculture and tourism. The EZ contributes VND4.8 trillion on average to the State budget each year.
From the beginning of this year, the EZ has attracted six new projects with total registered capital of $9.83 million, including three foreign investment projects with total registered capital of $5.36 million.
The Prime Minister issued Decision 1353/QD-TTg in September 2008 to develop the Van Phong EZ as a corridor to the sea to promote economic co-operation in the East-West Economic Corridor and the North-South Economic Corridor.
In addition, Van Phong is well-preapared to connect with the National Highway 1, the North-South railway, and the nearby National Highway 26 which already stays connected with the Central Highlands and many other localities.
The EZ is located 35km from Tuy Hoa Airport in Phu Yen Province and near the planned Bac Van Phong Port.
How have you tried to create a favourable investment environment in Khanh Hoa Province as well as the Van Phong EZ?
Provincial authorities and the Van Phong Economic Zone’s management board have always focused on solutions to improve the investment environment in the province as well as the EZ.
They have enhanced administrative reforms to create the most favourable conditions for individuals and enterprises, including reducing the time for implementing administrative procedures in the fields of investment, construction, environment and labour in economic zones and industrial parks.
In addition, they have publicised administrative procedures for investors as well as received proposals from enterprises and investors. They have also applied IT to implement administrative procedures.
To improve the investment environment in the EZ, the management board will focus on reviewing its master plan and then building mechanisms and policies that are suitable with the current laws and conditions in the province.
These mechanisms and policies must be transparent and fair for investors and enterprises.
What should Khanh Hoa and the EZ do to improve the quality and efficiency of attracting investment?
I think to attract investment, the province and the EZ should continue to create a favourable investment and business environment. They should focus on administrative reforms and cut the time it takes to implement administrative procedures using a one-door mechanism.
In addition, they should help enterprises access loans from local credit organisations.
The province should also set up links with local and overseas partners to provide qualified workers for the province as well as economic zones and industrial parks. It should encourage enterprises to organise training courses with the support of the State, and to upgrade training facilities.
At the same time, the province should give priority to attracting investment projects using high, new, clean and economical technologies.
Provincial authorities should continue to solve difficulties facing enterprises.
The province needs to co-operate with economic zones and industrial parks in other localities to provide efficient support for investment promotion.
I would like to emphasise that investment incentive policies should be consistent and synchronised with the State’s existing regulations to reassure investors. — VNS