Creating favorable conditions for investors

10:18 | 17/08/2015 Investment

(VEN) - Da Nang has achieved remarkable results in creating the most favorable conditions for investors in recent years, ranking first in terms of the provincial competitiveness index (PCI) in 2013 and 2014 and topping the provincial-level public administration reform index in 2013. Vietnam Economic News’ Xuan Lap talked with Da Nang Department of Planning and Investment Deputy Director Huynh Van Thanh.

Creating favorable conditions for investors

Da Nang Department of Planning and Investment Deputy Director Huynh Van Thanh (middle) speaks at a meeting

Could you tell us about Da Nang’s investment attraction?

In addition to general incentives from the state and government, the Da Nang People’s Committee has issued many preferential mechanisms and policies to promote investment attraction such as Decision 30/2012/QD-UBND dated July 26, 2012 supporting software export businesses, Decision 36/2013/QD-UBND issuing regulations in terms of preferential policies and promoting investment in the Da Nang Hi-Tech Park and Decision 16/2014/QD-UBND dated May 21, 2014 supporting businesses who innovate their technology. Therefore, businesses have enjoyed many incentives in terms of taxes, land lease and infrastructure.

As many as 1,619 enterprises were granted business registration certificates in the first half of this year, an increase of 22.1 percent compared to the same period last year with total chartered capital of VND6.354 trillion, a year-on-year increase of 31.9 percent. The city has 15,828 businesses currently operating with total registered capital of VND81.567 trillion.

Da Nang had 340 foreign direct investment (FDI) projects by the end of this June with total capital of US$3.451 billion and disbursement capital reached an estimated 56.56 percent of total registered capital. The city had 35 new FDI projects with total registered capital of US$14.9 million in the first half of this year focusing on production, trade and services. In addition, 10 projects added capital with total amount of US$59.9 million focusing on services, industry and commercial consultancy.

What solutions has Da Nang implemented to strengthen investment attraction?

The city has promoted the establishment of the Investment Promotion Steering Committee headed by the chairman of the city people’s committee to consider and approve large-scale investment projects. The Investment Promotion Steering Committee is responsible to overcome difficulties and create favorable conditions for investors in implementing investment projects. Regarding the Da Nang Hi-Tech Park, the city has directed departments and agencies to devise medium and long-term strategies to attract investment and promote the development of hi-tech industries.

Da Nang has also made greater efforts to improve the efficiency of investment promotion activities in a context where FDI attraction has faced difficulties due to the economic recession and the relative saturation of Da Nang’s investment environment compared to cities and provinces throughout the country with main solutions such as improving the quality of infrastructure, transport system, wastewater treatment system in industrial zones and hi-tech parks and overcoming difficulties facing administrative procedures and investment mechanisms.

To promote cooperation with multinational corporations from Japan, the Republic of Korea, the US and Western Europe, the city has devised special mechanisms to highlight the city’s investment environment. In addition, the city has adopted preferential policies to attract more large groups in key industries. The project on developing support industries has been focused on by the Da Nang Department of Industry and Trade in cooperation with relevant departments and agencies in order to create a growth engine for the city and increase the attractiveness of hi-tech industries.

Da Nang has paid special attention to perfecting transport infrastructure, seaports, warehouses, telecommunication networks and infrastructure in industrial zones and hi-tech parks such as wastewater treatment and environmental observation systems.

The city will also strengthen inspection and monitoring of investment activities, promote FDI disbursement, narrow the gap between registered capital and invested capital, review long-delayed investment projects and revoke investment certificates of projects which have not been able to deploy, especially large-scale projects.

The Da Nang Department of Planning and Investment will carefully consider granting investment certificates for projects using land and ask investors to ensure that major investment projects will not lag behind schedule.

Da Nang has been praised in terms of administrative reform. What’s your assessment?

Driving towards finalizing the first e-government model, the city has developed a guidance model in terms of online tax declarations and supported the public in conducting administrative procedures. Thanks to these solutions, Da Nang ranked first in terms of the PCI in 2013 and 2014.

Regarding investment attraction, to shorten the time and save costs for investors, the city has deployed a one-door mechanism and applied information technology to promote administrative reform. The city is gradually deploying the information technology system on FDI management conducted by the Ministry of Planning and Investment. The system will contribute to shorting the time on granting and adjusting investment certificates for foreign investors and will be an information channel for businesses.


Xuan Lap