As part of a series of events to celebrate the 50th anniversary of the implementation of President Ho Chi Minh’s testament, a get-together for investors on the occasion of the Lunar New Year 2019 was held by the central province of Nghe An and the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) in Cua Lo town on February 23.
The event was attended by about 700 delegates, including Party and State leaders and officials from ministries, agencies, and localities that have close ties with Nghe An province; along with nearly 500 delegates from organisations, corporations, businesses, business associations, and investors inside and outside country; as well as representatives from international organisations in Vietnam.
The provincial authorities took the occasion to deliver a message on their strong commitment to administrative reforms. They pledged to continue accompanying and continuing to be a reliable, long-term, and sustainable partner of investors.The locality also hoped to benefit from the instructions of the Prime Minister and officials from ministries and central agencies, and recommendations made by other localities, investors and the business circle, in order to reform the way of thinking and doing in socio-economic management in general and investment attraction in particular.The meeting, an initiative of the BIDV and the Party Committee for the Central Business Bloc, has been organised by the provincial People’s Committee since 2009 with the aim of creating a forum to honour investors and enterprises that have made great contributions to the locality’s socio-economic development; while enhancing investment connection and promoting the image of Nghe An to domestic and foreign investors.
Investment attraction results for the 2014-2018 period as seen in figures
In the 2014-2018 period, Nghe An attracted 690 investment projects with total registered capital of nearly 143 trillion VND, comprising 650 domestic projects worth 133.5 trillion VND and 40 foreign direct investment (FDI) projects valued at 9.5 trillion VND.
Classification of projects based on implementation progressProjects already operational: 55 projects with total investment capital of 42.86 trillion VND, accounting for 48 percent of the total registered investment capital.
Projects in the stage of procedure processing and construction: 74 projects with total investment of 34.42 trillion VND, accounting for 39 percent of the total registered investment capital.
For projects with investment of over 100 billion VND each, the province has attracted 150 projects
Projects yet to be launched or having licences withdrawn: 21 projects with total investment of 11.84 trillion VND, accounting for 14 percent of the total registered investment capital. Of those projects, 11 with total investment of over 3.21 trillion VND are yet to be implemented, and 10 have had their licences withdrawn.
Classification based on investment sectors
Industrial sector: 75 projects with total registered investment of 47.64 trillion VND, accounting for 53 percent of the total investment, of which:
– The group of operational projects: 32 projects with total investment capital of 29.74 trillion VND, accounting for 62 percent of the total registered investment in the field.
– The group of projects in the stage of procedure processing and construction: 32 projects with total investment of 13.55 trillion VND, making up 28 percent of total registered investment in this field.
– The group of projects that are yet to be implemented or have had investment licences withdrawn: 11 projects with total investment of over 4.34 trillion VND, making up 9 percent of the total registered investment in this field.
Construction sector: 36 projects with total investment of 20.54 trillion VND, accounting for 23 percent of total investment, of which:
– The group of operational projects: 8 projects with total investment of 4.94 billion VND, making up 24 percent of total registered capital in the field.
– The group of projects in the stage of procedure processing and construction: 23 projects with total investment of 11.9 trillion VND, accounting for 58 percent of total registered capital in the field.- The group of projects that are yet to be implemented or have had investment licences withdrawn: 5 projects with total investment of over 3.66 trillion VND, making up 18 percent of the total registered investment in this field.
Trade and service sector: 25 projects with total investment of 10.51 trillion VND, accounting for 12 percent of total investment, of which:
– The group of operational projects: 11 projects with total investment of over 5.6 trillion VND, accounting for 53 percent of total registered investment in the field.
– The group of projects in the stage of procedure processing and construction: 11 projects with total investment of over 4.44 trillion VND, accounting for 42 percent of total registered capital in the field.
– The group of projects that are yet to be implemented or have had investment plans/investment licences withdrawn: 3 projects with total investment of over 457 billion VND, making up 4 percent of the total registered investment in this field.
At the event, local authorities continued to deliver the message on their strong commitment to administrative reforms.
Agricultural sector: 10 projects with total registered investment of 8.613 billion VND, making up 10 percent of total investment, of which:
-The group of operational projects: 2 projects with total investment of over 1.16 trillion VND, accounting for 14 percent of total registered investment in the field.
– The group of projects in the stage of procedure processing and construction: six projects with total investment of 4.07 trillion VND, accounting for 47 percent of total registered capital in the field.
– The group of projects that are yet to be implemented or have had investment licences withdrawn: two projects with total investment of over 3.37 billion VND, making up 39 percent of the total registered investment in this field.
Social investment in education, healthcare, and culture: four projects with total registered capital of over 1.8 billion VND, accounting for 2 percent of total investment, of which:
– The group of operational projects: one project with total investment of 1.3 trillion VND, accounting for 71 percent of total registered investment in the field.
– The group of projects in the stage of procedure processing and construction: three projects with total investment of 525 billion VND, accounting for 29 percent of total registered capital in the field.
The aforementioned statistics show that the registered capital in projects that have become operational or are being implemented accounts for a large proportion (87 percent), showing that investment attraction from 2014 until now has met the province’s target.
At present, many investors and reputable corporations have been effectively implementing investment projects in Nghe An. They include Vingroup, Masan, T&T, BRG, FLC, TH, The Vissai, Hoa Sen, Muong Thanh, Vinamilk, VSIP, and WHA Industrial Zone.
Many large projects using high technology have come into operation effectively, contributing to creating jobs for local people.
TH Group has received investment licences for 10 projects with a total registered capital of over 12.06 trillion VND, of which 4 projects worth over 8 trillion VND have already become operational. Meanwhile, Vissai Group invested over 12.1 trillion VND in Nghe An, with two projects put into operation worth over 11.6 trillion VND. Hoa Sen Group has two operational investment projects in the locality with total investment of 8.01 trillion VND.
Results of investment attraction in 2018
In 2018, Nghe An authorities granted investment licences to 114 projects with total registered capital of 9.12 trillion VND, and allowed the addition of 1.28 trillion to eight existing projects.
A number of new projects included a Masan beer and beverage factory in Zone B of the Nam Cam Industrial Park (1.66 trillion VND); the Trung Do construction material production complex in Nghi Van commune, Nghi Loc district (1.02 trillion VND); the Hai Chau II confectionery factory (360.3 billion VND); Biomass Fuel Vietnam at VSIP Industrial Park (20 million USD); Em-Tech Vinh factory at VSIP Industrial Park (11.82 million USD); the Nghe An Pharmaceutical Factory (315 billion VND).At the meeting, the provincial authorities presented decisions approving investment proposals and investment licences for nine projects, and signed 16 investment agreements. Among them, one project was put into operation at the end of 2018, and 8 out of 9 projects are being implemented at scheduled pace. Meanwhile, 3 out of the 16 signed agreements have later been granted approval of investment proposals, and investors under 9 other agreements have submitted investment dossiers to the provincial authorities,while investors under the remaining 4 agreements are conducting study and completing investment dossiers.
In the 2014-2018 period, Nghe An’s annual budget collection increased by about 1.2 trillion VND.
The success of investors’ meetings has contributed to creating a strong change in attracting investment in Nghe An, as seen in the increasing number and scale of projects through the years, creating jobs for more than 37,500 labourers each year.
In the 2014-2018 period, Nghe An’s budget collection increased by about 1.2 trillion VND every year. In 2018, the locality collected over 13.9 trillion VND for the State budget, reaching 109.8 percent of the estimate and increasing by 9.4 percent compared to those of 2017.
Per capita GRDP reached 38 million VND. The capital flow also contributed to shifting the structure of investment towards higher proportion of investment in industry, construction, and trade-services.
The locality has paid attention to luring investment in agricultural production, the processing industry, and tourism services, creating a fundamental impetus for its socio-economic development and contributing to successfully achieving the targets set in both the Politburo’s Resolution No.26-NQ/TW dated July 31, 2013 on the orientation of and tasks for the development of Nghe An towards 2020, and the 18th provincial Party Congress’ resolution. –VNA
