(VEN) - Ninh Thuan Province determined to make changes and improve its investment environment. The province's position has been improved; and its potentials and advantages, especially those related to sea-based economy, clean energy, new urban areas and tourism development have been exploited more efficiently. Therefore, Ninh Thuan has become an attractive destination for investors. Vietnam Economic News' Le Anh and Thu Duyen spoke with Pham Dong, the director of the Ninh Thuan Province Department of Planning and Investment about investment and socioeconomic development in the province.
What is your assessment of investment attraction in the province three years after the province's investment promotion conference was held?
Over the past three years, many leading economic groups and corporations inside and outside Vietnam came to Ninh Thuan to learn about investment opportunities and register to invest in the province. Since 2009, 126 projects totaling VND120.393 trillion in registered capital, including 10 foreign direct investment (FDI) projects, were licensed in the province.
Investment covers a wide range of industries, such as tourism, new urban area development, aquaculture, minerals and granite processing in which Ninh Thuan has comparative advantages. Many investors also registered to invest in wind power development in the province. To date, Ninh Thuan has licensed six wind power projects with a total designed capacity of 500MW and a combined investment capital of more than VND16 trillion. They include a VND5.2 trillion, 124.5MW renewable energy fueled Phuoc Nam power plant by the Enfinity Asia Pacific Limited, a VND6.537 trillion, 180MW wind power project by the Than Phong Energy Joint Stock Company, and others.
Ninh Thuan signed agreements on comprehensive development cooperation with Ho Chi Minh City and Phu Yen, Khanh Hoa, Binh Thuan and Lam Dong provinces to make full use of economic and infrastructure-related advantages of the region for socioeconomic development in the province. It also signed investment cooperation agreements with many leading economic groups and corporations, including the Vietnam National Oil and Gas Group (PetroVietnam), the MK Group from the Republic of Korea (RoK), and the Federal Owens Group and the Kachay Homes Inc. from the US to implement large projects worth US$500-800 million each in the fields of tourism, urban development, energy and agriculture. Ninh Thuan and investors are working to start these projects on time. In return, these projects are expected to promote socioeconomic development in the province.
What are the major factors in promoting socioeconomic development and investment in Ninh Thuan?
Ninh Thuan needs to have a new approach and new way of thinking to make a difference and create breakthroughs in development if it hopes to successfully carry out the plan for socioeconomic development in the province by 2020. This will also help to shorten the gap between it and other provinces in the region and the rest of the country. The three following groups of basic solutions are important.
The first group of solutions includes 1) implement the overall plan for socioeconomic development in the province by 2020 that was approved by the Prime Minister; 2) complete an overall plan for construction of the city of Phan Rang and Cham towers and a coastal development plan; 3) speed up development planning of the city and districts and make it available for investors to get up-to-date information about development and land plans; 4) promote investment in infrastructure especially in important projects aimed at making use of seaport and airport-related advantages of provinces in the region; and 5) prioritize the development of coastal roads and a highway connecting the Cam Ranh International Airport with the city of Phan Rang and Thap Cham. These projects will help attract investment, develop tourism and prepare for construction of the two first nuclear power plants in Ninh Thuan.
The second group of solutions is to build a qualified and professional workforce. Ninh Thuan hopes to become a center for training the highly qualified workers needed for some fields in which the province has advantages. In addition to upgrading the vocational high school into a vocational college, Ninh Thuan is working with prestigious universities and training centers inside and outside Vietnam to build and operate high quality training facilities for the south central region and the Central Highlands.
The third group of solutions includes 1) improving the investment climate and provincial competitiveness index; 2) creating an open, favorable investment environment through administrative reform; and 3) reducing marketing costs and increasing investor's comfort, aiming to fully take advantage of strengths for development investment.
What preferential policies does Ninh Thuan have to attract investors?
The province is applying the highest preferences stipulated by the Government and the best preferences related to land rent (land rent exemption and reduction), the corporate tax and the import tax to investors in the province. To be specific, investment projects in provincial districts can be freed from paying land rent for 11-15 years; they can be subject to a 10 percent enterprise income tax for 15 years commencing from when they begin to earn revenues; they can be freed from paying an enterprise income tax for four years commencing from when they begin to earn taxable revenue and benefit from a 50 percent reduction in the enterprise income tax for the nine following years. They can be freed from paying import taxes related to goods imported for creating fixed assets and be assisted by the province in infrastructure construction, compensation payment and site clearance. The province hands over land to investors in accordance with their projects' scale and provides investors with services such as water and power supply, transport infrastructure, vocational training and trade promotion with the highest preferences stipulated by the Government./.
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