Investment attraction has been quite active in Quang Ngai province in the past and produced positive results, helping make this potential land an attractive destination for domestic and foreign investors. Ms. Tran Thi My Ai, Director of the Department of Planning and Investment of Quang Ngai, said the most remarkable successes include an increasingly open investment environment, more substantive administrative reform and increased Provincial Competitiveness Index (PCI) that have built up business and investor confidence in the province. Duy Anh reports.
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After five years of carrying out the Resolution of the 19th Provincial Party Congress (2015-2020 term), what are outstanding results of investment attraction and business development of Quang Ngai province?
On domestic investment, the province granted investment licenses to 524 projects with a total registered capital of VND173,683 billion from 2016 to October 2020 and witnessed an estimated VND60,000 billion disbursed by investment projects. The province also revoked investment licenses from 66 projects with a combined registered fund of VND14,176 billion. At present, Quang Ngai is home to 782 valid domestic investment projects with VND320,401 billion, of which VND183,000 billion was disbursed, accounting for 57.1% of the total registered fund. 337 projects are operational.
Regarding FDI attraction, in the past five years, Quang Ngai licensed 41 projects with US$895.4 million of total registered capital, of which US$750 million was already spent by projects. Besides, it revoked 11 projects with US$3,146 million, including the US$3,000-million Guang Lian Steel Mill project that failed to follow the prescribed schedule. Presently, 65 FDI projects with US$1,953.5 million of registered investment funds are active. Foreign investors have already disbursed US$1,116 million on their projects or 58.18% of the total. 35 projects are in operation, 24 projects are under construction and six projects are on hold.
In addition, on business registration, Quang Ngai province had 3,367 new business registrations from 2016 to October 2020, an increase of 4% from the latest corresponding period. The registered capital totaled VND41,830 billion. 602 companies and branches resumed operations; 848 applications for temporary operational halt were filed; 752 corporate bankruptcy files were submitted - 9% more than the previous period. Cumulatively, 6,711 out of 8,964 established enterprises are in operation.
With the participation of the entire political system, has the PCI Index of Quang Nam province made any remarkable progress in recent years?
The Provincial Competitiveness Index (PCI) of Quang Ngai province improved in 2016-2020. Particularly, in 2019, it scored 64.43 points, the highest since 2006. By rankings, its PCI swayed between increases and decreases. Specifically it ranked No. 26 in 2016 and No. 25 in 2017, but it slid to No. 41 in 2018 and in 2019 before rebounding to No. 36 in 2020. Without doubt, the firm direction of the Provincial People's Committee on implementation of Resolution 02/NQ-CP (formerly Resolution 19) of the Government on improving the business environment and enhancing competitiveness has created positive outcomes, which are expressed by perspectives of the business community.
Based on its performance in the past time, the province is determined to boost its PCI scores and rankings to be categorized into good performers in 2021 - 2025. The province will strive to build a truly open, transparent, dynamic and favorable business climate for all economic sectors, attract investors, develop enterprises, and ensure sustainable social and economic development in 2021-2025. To realize its goals, Quang Ngai will focus on raising PCI scores, gradually climb in the rankings, and expects to be positioned in the good-performer category in 2021 by increasing the PCI score to over 64 points to stand among Top 20 or Top 30 out of 63 provinces and cities. By 2025, its total PCI score is expected to inflate to 67 points or higher and rank in Top 10 - 20 to stand among the very good performers.
In the new 2021 - 2025 term, what are favorable opportunities for Quang Ngai to continue to make new milestones in investment attraction and socioeconomic development?
The province’s achievements in the past, especially in 2016-2020, are enabling and motivating its socioeconomic development and investment attraction in the coming time, especially in the 2021-2025 period. In addition, quicker preparation and implementation of key large-scale projects such as the expanded Dung Quat oil refinery, a gas power complex fueled by Ca Voi Xanh offshore gas field, Hoa Phat - Dung Quat general and container port, expanded Hoa Phat steel mill and Vinpearl's investment proposals, will create momentum for other regions in the province and promote domestic and international connectivity, and facilitate the province to strongly develop industry and services. Moreover, by attracting more than 560 investment projects with nearly VND200 trillion (US$ 8.4 billion) of investment capital in 2016 - 2020, with some already being operational like Hoa Phat steel mill and tenants in VSIP Industrial Park. The faster implementation and operation of these projects will also help create new products and expand the economic size, employment and budget revenue.
Needless to say, the ready infrastructure is a premise for investment attraction and socioeconomic development. Currently, the transport system connecting Quang Ngai with localities in Vietnam and other countries is increasingly convenient. Specifically, National Highway 1A - the most important national road, Quang Ngai - Da Nang - Hue Highway, National Highway 24 linking with localities in the Central Highlands of Vietnam, southern Laos and northeast Cambodia. Furthermore, the Dung Quat seaport system is more developed. In addition to the general port system of Dung Quat Economic Zone, it also has specialized ports of Doosan, Hoa Phat and Hao Hung. In the coming time, Hoa Phat will invest in a system of general - container ports that will help maximize the advantages of local deep-water ports. Regarding airway, eyeing to develop Chu Lai Airport into an international hub, this will be one of favorable conditions to scale up economic development not only in Chu Lai Open Economic Zone and Dung Quat Economic Zone, but also other areas. It also plays an important role in the formation and development of urban centers, attracting investment flows and establishing economic links, especially for development investment.
The infrastructure system in Dung Quat Economic Zone and Quang Ngai Industrial Zones has been synchronously invested, with internal and external traffic systems being gradually expanded. Da Nang - Quang Ngai Expressway and Tri Binh - Dung Quat Port Road that matches with National Highway 1A will be completed in 2019. The deep-water seaport system has been synchronously invested to accommodate ships of 200,000 DWT. This is a core comparative advantage to create an important competitive edge for Quang Ngai to attract investment capital for economic development, both inside and outside economic and industrial zones.
Another magnet to new investment projects into industrial zones is the presence of VSIP Industrial - Urban - Service Area and Dung Quat Urban - Industrial Park. These will help draw more investment projects, particularly foreign-invested ones, into Dung Quat Economic Zone, widen the window of opportunities to new investment projects, and open more access to new know-how for local economic development. By promoting the advantages of Dung Quat Economic Zone, VSIP will create momentum to spread to other places in the province, the country and the world. Then, Quang Ngai province will become a more attractive destination for investors far and wide.
Seizing the above opportunities and advantages, what fields will Quang Ngai province attract investment capital for in the 2021 - 2025 period?
During this period, the province will implement solutions for better business and investment environment, with focus placed on such key tasks as reforming administrative procedures; improving indicators concerning land access, time cost, fair competition, market entry and labor training; apply advanced information technology in public services; focus on removing obstacles in investment procedures, land compensation and site clearance, and prepare a clean land fund to facilitate project implementation. It will continue to study renovations and organize effective business meetings, business-bank meetings; carry out business startup and incubation programs.
The province will organize target investment promotion events, eyeing large business groups, and strengthen localized investment promotion. At the same time, Quang Ngai will try to lure global FDI flows redirected away from some economies. The province aims to draw high-quality investment projects, with priority given to industry, logistics, supporting industry, green industry, urban infrastructure, services, tourism and hi-tech agriculture. In particular, it will focus on projects that make alternative products to imports so as to strengthen cooperation between FDI firms and domestic enterprises while laying the foundation for development of supporting industries.
With the aspiration to become a well-developed province in the central region by 2025, Quang Ngai is always open to welcome investors and works together for the prosperity of the province that is well-known for the picturesque An Mountain and Tra River.
Source: Vietnam Business Forum
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