Vinh Phuc Province: A magnet for foreign investors

09:53 | 10/11/2017 Economy

(VEN) - Vinh Phuc Province northwest of Hanoi is one of the biggest recipients of foreign direct investment (FDI) among Vietnam’s provinces. Le Duy Thanh, deputy chairman of the Vinh Phuc People’s Committee, told Vietnam Economic News that FDI projects have contributed greatly to the province’s socioeconomic development.

a magnet for foreign investors
Le Duy Thanh, deputy chairman of the Vinh Phuc People’s Committee

Could you tell us about FDI attraction in Vinh Phuc?

As of the end of September 2017, Vinh Phuc attracted 253 FDI projects totaling US$3.7 billion in registered capital, 185 projects of which, accounting for 72.3 percent of all projects and 62 percent of all registered capital, have begun operation. Foreign investors in Vinh Phuc come from 16 countries and territories worldwide, including Japan, the Republic of Korea (RoK) and Italy, among others.

The FDI projects in the province are focused in the automobile, motorbike, auto and motorbike part, electronics and computer manufacturing and assembly, textile and garment, and building material industries.

What is your assessment of FDI’s role in the province’s socioeconomic development?

The FDI sector has been contributing greatly to the province’s socioeconomic development. In 1997, Vinh Phuc earned only VND100 billion and still relied on the state budget. With annual budget revenue of VND32 trillion, the province has recently become the second largest province in northern Vietnam and the sixth biggest province in the country in terms of budget revenue. The provincial economic structure has been transformed, with agriculture and forestry’s contribution to the province’s gross domestic product (GDP) having decreased from 45.13 percent in 1997 to 9.3 percent.

FDI businesses are providing jobs for about 75,000 local workers with a stable income, increasing per capita income in Vinh Phuc from a level just half of the country’s average to about US$3,000 higher than the country’s average.

What is the province’s plan for future FDI attraction?

We will be encouraging high-technology and environmentally friendly projects, projects contributing greatly to provincial socioeconomic development, projects capable of joining the global value chain, and electronics, telecommunications, mechanical, new material and support industry projects. We will also be promoting investment in industrial park infrastructure, service, tourism and university projects, and projects in the fields of finance and banking, insurance, health care, and education and training.

We will continue improving our investment environment and create the most favorable conditions for foreign investors to research investment opportunities and invest in the province. At the same time, we will create conditions for FDI enterprises to connect with provincial and domestic businesses that are operating in the province and joining regional and global value chains.

Le Duy Thanh, deputy chairman of the Vinh Phuc People’s Committee, says Vinh Phuc is focusing on attracting FDI from multinational corporations, support industry enterprises, and small to medium-sized enterprises from Japan, the RoK, Germany, and the US.

Chu Dan