Vinh Phuc emerges as destination of choice for investors

Toyota Vietnam's plant in Phuc Yen, Vinh Phuc (Photo: VNA)

Hanoi – The northern province of Vinh Phuc has been a destination of choice for investors, both domestic and foreign, amid the COVID-19 pandemic.

Representatives from the province’s Department of Planning and Investment said factors that help draw investors to the locality include the availability of clean infrastructure, convenient transport and reasonable land lease prices.

As of the end of June 2020, Vinh Phuc was home to 392 foreign direct investment (FDI) projects with total registered capital of 5.57 billion USD, according to statistics of the department. The projects were run by investors from 18 countries and territories. The Republic of Korea has the most projects with 210, followed by Japan, China and Thailand.

Many global groups have made their presence in Vinh Phuc, such as Toyota, Honda, Sumitomo from Japan, Piaggio from Italy, De Heus from the Netherlands, Daewoo, Haesung Vina, Partron Vina, Cammsys from the Republic of Korea, Prime Group from Thailand and Weldex from the US.

The province has also attracted 782 domestic direct investment (DDI) with total investment surpassing 93.7 trillion VND (around 4 billion USD at current exchange rate). Several major Vietnamese corporations have chosen Vinh Phuc for their investment, such as FLC, Vingroup, SunGroup, and Viet Duc Steel.

The flow of investment capital, both FDI and DDI, into the province in the first six months of this year decreased as a consequence of the coronavirus pandemic. Total FDI capital in the period stood at 135.6 million USD, equivalent to only 32.1 percent of the figure in the same period last year. The money was poured into 14 new projects and 19 existing ones.

Meanwhile, DDI capital attraction in the period came to 2.67 trillion VND, equivalent to 51.5 percent of the figure in the same period of 2019. The capital was pumped into 24 new projects and 9 existing ones.

Officials from the Department of Planning and Investment said the provincial authorities will continue to push forward with administrative reform, focusing on streamlining administrative procedures to reduce time and costs for enterprises. Vinh Phuc will promote the application of information technology (IT) in administrative procedures with the goal of creating the best possible environment for production and business, thus enhancing the attraction of FDI and investment from society.

At the same time, attention will be paid to removing difficulties and obstacles faced by businesses in various fields, from business registration to business conditions, customs clearance and taxation.

During the period of social distancing to curb the spread of the COVID-19 pandemic, agencies in Vinh Phuc still maintained their connections with investors through many channels, providing them with consultations and latest information. The province has also intensified online investment promotion activities, so as to attract investors after the pandemic is put under control.

Vinh Phuc has designated 18 industrial parks with total area of 5,228 ha in a master plan to 2020 approved by the Prime Minister. By now nine industrial parks have received investment certificates. Industrial parks in Vinh Phuc have good technical infrastructure and professional management, thus contributing to attracting investors to the province. They reported an average occupancy rate of nearly 62 percent.

Thanks to the province’s endeavours to complete infrastructure in industrial parks and a transport system connecting them, as well as efforts to improve the business environment and reform administrative procedures, Vinh Phuc has become more popular among foreign investors.

The province reported total industrial production value of 11 trillion VND in the first six months of this year, down 9 percent year on year, which it attributed to the impact of the COVID-19 pandemic. The output of most main products declines, such as automobile down 24.8 percent, motorbike 14.4 percent, and electronic parts 7.7 percent.