Phu Tho Province improves investment environment

08:48 | 20/02/2020 Economy

(VEN) - Enterprises in industrial parks (IPs) and industrial clusters (ICs) in Phu Tho Province have contributed significantly to the increase of local industrial production values, export turnover and budget revenues, generating jobs for thousands of workers inside and outside the province. In 2020, Phu Tho will focus on improving its investment environment in order to enhance the efficiency of foreign direct investment (FDI) projects. 

phu tho province improves investment environment
Phu Ha Industrial Park in Phu Tho Province attracts many enterprises

The northern province of Phu Tho is home to seven IPs and 22 ICs on total planned areas of 2,256ha and 1,226ha, respectively. In addition to domestic investors, many investment projects in local IPs are conducted by foreign investors, mainly from the Republic of Korea, China, and Japan covering various fields including electronics, mechanics, textiles, packaging, foodstuff, agro-forestry processing, construction materials, animal feed, and some new industries and high-tech industries.

Until now, 175 projects have been granted investment licenses in IPs and ICs, with 134 enterprises already in stable operations. In 2019, the revenues of the enterprises were estimated at VND40 trillion, a year on year increase of 33 percent, meeting 100 percent of the year’s plan. According to statistics, the total export value doubled from US$630 million in 2015 to US$1.35 billion in 2019. Each year, the IPs and ICs created new jobs for more than 3,000 workers. In the 2015-2019 period, on average there were 10 enterprises operating stably each year, which helped increase revenues by more than VND21 billion.

Despite the increasing number of enterprises in Phu Tho’s IPs and ICs over the years, the contribution of FDI enterprises to the state budget remains low, only accounting for 10-15 percent of the total budget contribution in these IPs and ICs, while the remaining proportion of 85-90 percent were generated by domestic enterprises. In other words, despite their significant capital and labor-intensive employment they provide, FDI enterprises have not met the province’s expectations, yet.

In order to implement Government Resolution No 02/NQ-CP dated January 1, 2019, the Phu Tho Industrial Park Management Board plans to improve the investment environment in order to attract environmentally-friendly advanced technology projects and large-scale energy efficient projects, with high added value.

Accordingly, in the 2020-2025 period, the province will focus on completing the infrastructure of the IPs and ICs, expanding some new IPs to meet investor demands; clearing land, and supporting investors in finding suitable sites. The management board will also seek to improve its management of the IPs and ICs in construction, production, import-export and labor, contributing to stable business operations. In order to lure more domestic and foreign investors, the province plans to boost administrative reform, build an innovation authority, create an open and favorable investment environment and solve investor problems.

During the 2020-2025 period, enterprises in local IPs and ICs are forecast to maintain their operations, increase revenues, contribute regularly to the state budget and create new jobs for nearly 20,000 workers.

Nguyen Mai