(VEN) - The Foreign Investment Department has reported that as of July 20 Quang Ninh had achieved second place in attracting FDI, just behind Ba Ria-Vung Tau Province.
However, Quang Ninh Province Department of Planning and Investment said that there are still persistent problems in attracting foreign investment and this had been a concern for years now.
The department said that Quang Ninh has received 182 FDI projects since 1989 and that 105 of them are operational with total registered capital of US$5.85 billion.
The province granted licenses to two FDI projects with total registered capital of US$2.15 billion in the first seven months of this year. These are the US$2.147 billion Mong Duong 2 Power Plant Project invested by a US company, and a US$3.4 million Chinese-invested fertilizer factory. These were instrumental in Quang Ninh's becoming the second biggest FDI recipient.
Fourteen countries and territories are investing in Quang Ninh. Of these, the US took first place with eight projects financed at US$2.39 billion (64 percent of total investment capital), ahead of China, Singapore and Chinese Taipei. Ninety-one percent of FDI projects in Quang Ninh are joint ventures, with the rest being 100 percent foreign investment projects and business cooperation contracts (BCC). Most FDI projects are located in the city of Ha Long, Mong Cai, Cam Pha, Van Don and Dong Trieu. Major investment areas are industry (making up 71 percent of total registered capital), tourism, and agriculture-forestry-fisheries.
Leaders of the Quang Ninh Department of Planning and Investment said that FDI in the province has not yet met potential and demand was still high. Specifically, many projects have had their license withdrawn or suspended due to poor business strategy and lack of profitability. Moreover, many ongoing projects are not focused in modern electronics, high-technology or creation of disease-free varieties of agriculture. Although local authorities have taken measures across the board to improve the investment/business environment such as reforming administration procedures, putting in place policies to boost investment promotion activities, improving officials' qualifications and assisting businesses after they received investment licenses, achievements in FDI attraction are modest and do not yet reflect business potential and advantages of the province.
To rectify the situation, Quang Ninh has taken several measures such as reforming administration processes, improving human resources, renewing investment promotion activities, organizing regular meetings between local authorities and investors, and continuing to improve infrastructure and the competition index. It is expected that the measures will facilitate a range of new projects like the Dong Trieu Golf Course Complex with registered capital of US$260 million, a Chinese US$100 million fiber production project in the Hai Yen Industrial Park, and a Japanese US$100 million project to make high-grade products from limestone. Once these projects become operational they will contribute to improving FDI attraction in the province in the near future.
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The northeastern coastal province of Quang Ninh covers about 8,239sq.km and has a population of approximately 1.14 million.
Following the economic development plan, Quang Ninh is in the Northern Key Economic Zone and the Northern Coastal Zone. It is also one of the four largest tourist centers in Vietnam. With Ha Long Bay recognized by UNESCO as a world natural heritage site, and additional famous cultural sites like Yen Tu Pagoda, Bach Dang Stake Field, Cua Ong Temple, Quan Lan Communal House, Tra Co Communal House, and Bai Tho Mountain, Quang Ninh has conditions favorable for the development of coastal tourism, ecotourism, sports tourism, and cultural/spiritual tourism.
In particular, a wealth of mineral resources, large seaports and deep-water ports are ideal for the development of the Vietnamese marine shipping industry. Also, with border crossings, particularly the Mong Cai International Border Crossing, Quang Ninh is a gateway for import-export exchange with China and other countries in the region.
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By Chu Huynh
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