Investment Attraction - New Impetus from Provincial Planning

The provincial planning for the period 2021 - 2030, with a vision to 2050, has just been approved by the Prime Minister and announced in early 2024, providing an overall picture of the province's development orientation, considered a "push" to create a new impetus to attract more investment capital into the province in the coming time.

Perspective of SHI IP Tam Duong Industrial Park project.

After 27 years of implementing the Government's policy on attracting foreign direct investment (FDI), Vinh Phuc has affirmed itself as an attractive destination for investors, especially enterprises and corporations from developed countries.

With a high degree of economic openness and deep international economic integration, FDI enterprises in the area operate effectively, making important contributions to the budget revenue and socio-economic development of the province. In 2023, in the context of economic difficulties and challenges, the province's economic growth and budget revenue results are still positive compared to the national average.

According to a report from the Provincial Industrial Parks (IPs) Management Board, to date, IPs and industrial clusters (ICs) in the province have attracted more than 450 FDI projects from 20 countries/territories with a total registered capital of more than 8 billion USD and more than 800 domestic investment projects (DDI) with a total capital of more than 140 trillion VND.

In 2023, the province granted new Investment Certificates to 44 projects, including 28 FDI projects with a total investment of 275 million USD and 16 DDI projects with a total investment of 4,632 billion VND. Capital was increased for 50 FDI projects with a total investment of 329 million USD and 20 DDI projects with a total increased investment of more than 17,000 billion VND.

The total newly granted and increased investment capital for FDI projects is over 600 million USD, and for DDI projects is 21,728 billion VND. These are impressive figures, showing that the quality of the province's investment environment is increasingly improving.

In particular, the province's investment and post-investment support work has been highly appreciated by many businesses. For example, in the investment project of the motorcycle parts factory of Polaris Group (USA) in Ba Thien II Industrial Park (Binh Xuyen), after nearly 1 year of construction, the factory is ready to go into operation.

According to the plan, the first phase of the project has a capacity of about 750 thousand products/year, with an expected revenue of 400 billion VND, creating jobs for hundreds of workers. In addition to domestic consumption, the products will be exported to countries in the Asia-Pacific region, contributing to export turnover and promoting economic development of the province.

With confirmed support commitments to leading corporations such as Polaris (Top 500 leading US enterprises), Vinh Phuc will be an attractive destination for investors from the United States in the coming time.

Son Ha Group is speeding up the construction progress of the ground and infrastructure of SHI IP Tam Duong industrial park, ready to welcome the investment wave in the coming time.

Along with that, the presence of many large investors, multinational corporations have invested in Vinh Phuc such as Piaggio (Italy); (De Heus) Netherlands; Assa Abloy (Sweden); Toyota, Honda, Sumitomo, Sojitz (Japan), Haesung, Partron, Jawha (Korea), YCH (Singapore) ... will increase the attractiveness for investors coming to Vinh Phuc to seek business opportunities.

However, currently only 16/19 industrial parks in the province have investment policies, of which 8/19 industrial parks have completed infrastructure, come into operation and the occupancy rate of the industrial parks is at a high level. Typically, Thang Long Vinh Phuc Industrial Park, although it has only been in operation since 2017, has reached a occupancy rate of more than 92%.

The remaining industrial projects are being implemented quite slowly, many problems have not been resolved, significantly affecting investment attraction activities, slowing down the industrialization and economic development process of the province.

Specifically, the Son Loi Industrial Park project is still stuck with compensation and site clearance (GPMB), especially the progress of the resettlement area construction, which has not yet found a suitable location; Thai Hoa - Lien Son - Lien Hoa Industrial Park, Dong Soc Industrial Park, Song Lo I Industrial Park, Tam Duong I Industrial Park Area 2 (SHI IP) ... are in the GPMB phase; Song Lo II Industrial Park, although having basically completed the GPMB work, is facing difficulties in the source of materials for site leveling.

According to data recently released by the Foreign Investment Agency (Ministry of Planning and Investment), in 2023, the total registered FDI capital in our country reached more than 36.6 billion USD, an increase of 32.1% over the same period in 2022.

This shows that the opportunity to attract investment in industrial projects with modern and environmentally friendly technology is still very large. The provincial planning for the period 2021 - 2030, with a vision to 2050, which was just announced in early 2024, is a clear legal basis, showing the province's industrial development strategy, thereby further affirming Vinh Phuc as a potential destination for investors.

To make good use of the new impetus from provincial planning, the province has built a proactive investment promotion program with goals, focus, and key points in line with the national master plan, regional planning, and provincial planning for the 2021-2030 period, with a vision to 2050.

At the same time, diversify investment promotion methods, promote the application of information technology, enhance investment support activities, on-site investment, improve the investment environment, and create a favorable environment for FDI and DDI investors.

Focus on attracting digital economic sectors, sectors developing on the basis of 4.0 technology such as information technology industry (ICT), digital technology, nanotechnology, electric car and motorbike batteries, high-tech agriculture, environmental technology, clean energy...

Thereby accelerating the industrialization and modernization process, promoting the province's economic growth, towards becoming a centrally-governed city according to the announced plan.

Article and photos: Chu Kieu

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