A promising "investment season" is underway.

(Baonghean) - It can be said that September and October 2014 were quite good months for Nghe An in attracting investment. From the commencement of many projects to dozens of investors exploring and registering investments, the investment environment in Nghe An has improved significantly, even amidst the economic downturn and the slow recovery of production and business. Building this trust from investors also demonstrates the high level of effort and determination of the Nghe An provincial leadership after much deliberation about the investment attraction situation in the past.

The Chairman of the Board of Directors of Hoa Sen Group, Mr. Le Phuoc Vu, stated when deciding to invest in the Hoa Sen Steel Sheet Factory in the Southeast Economic Zone of Nghe An: “I feel that Nghe An now is like Binh Duong more than 10 years ago, very proactive and innovative. The provincial leaders, from the Provincial Party Secretary to the Chairman of the Provincial People's Committee, have all shown very high determination. We believe that Nghe An will stabilize policies and not discourage investors so that businesses can confidently invest long-term.” Hoa Sen Steel Sheet Group is a leading investor in the production of steel sheets and pipes in Vietnam and Southeast Asia, with revenue of nearly 1 billion USD/year, 4 factories, 130 branches nationwide, and exporting products to nearly 40 countries worldwide. Hoa Sen Steel Sheet Group is currently in the market expansion phase and initially plans to open a factory in Nghi Son - Thanh Hoa or Ha Tinh; However, after being introduced to the investment potential and advantages, along with the strong commitment from Nghe An province, they decided to invest and commence construction of a factory in Nghe An worth 2,300 billion VND.

Assembly line for components at BSE Electronics Co., Ltd. Photo: Pham Bang

In fact, for the Hoa Sen Steel Project as well as other projects such as Becammex and Quynh Lap Thermal Power Plant, the provincial leadership holds meetings once a month to monitor the situation, urge progress, and promptly resolve any obstacles. The Provincial Party Secretary and the Chairman of the Provincial People's Committee have specifically assigned the Southeast Economic Zone Management Board to pay special attention and appoint a focal point officer to directly coordinate and resolve issues related to investors, supporting them in completing land clearance, land lease contracts, investment certificates, etc.

The Nghia Dan MDF wood factory project is currently underway. Photo: SM

In terms of investment promotion, many large-scale investors have recently come to Nghe An and are ready to invest in projects and factories, including Masan Group, Nguyen Kim Electronics Group, Coopmart Group, Vingroup, etc. In Vinh City, the Nguyen Kim Shopping Center has commenced construction with a multi-story building and a total floor area of ​​over 30,000 m2. The project has an estimated total investment of 550 billion VND. When operational, in addition to electronics, the project will also have many other diverse shopping areas such as furniture, fashion, sports equipment, etc. Currently, Vinh City has completed land clearance and handed over the land to the investor. Masan Group, a group specializing in the production of food products such as Chinsu fish sauce, Vinacaphe coffee, soy sauce, etc., has also been handed over land in the Southeast Economic Zone to build a factory.

Projects that had previously received investment are now being expedited to the next stages, such as the Do Luong Cement Project and the Hoang Mai River Salinity Control and Freshwater Preservation Project, both funded by JICA (Japan). JICA has directly surveyed and assessed the current situation and has actively committed to investment. Japan will support Nghe An with a non-refundable technical assistance project, followed by loan programs to develop the province's agriculture. Several previously attracted investment projects are also beginning to show positive results and promising prospects, such as the BSE Electronics Factory and the Tien Phong Plastic Factory (Southeast Economic Zone)...

The positive results in attracting investment to Nghe An at this time must also be attributed to the province's quick response and prompt action in grasping the impact of the Ministry of Transport's policy banning overloaded vehicles. This has created many investment opportunities for large factories in the South to seek land for factory investment in the Central and Northern regions, thereby reducing transportation distances. Southern businesses have expanded their markets while reducing transportation costs from the South to the North, thus lowering production costs. Mr. Pham Dinh Toai – Deputy General Director of Finance of Masan Group, said: Masan currently produces 2 billion packets of instant noodles and about 300 million liters of fish sauce per year, of which over 50% is sold in the North. Every day, 400 Masan trucks are on the roads; therefore, investing in Nghe An will also reduce transportation costs in the Northern and Central markets.

However, the fundamental reason for Nghe An's success in attracting investment, as mentioned above, stems from its efforts towards the goal of becoming a prosperous province in the North and successfully implementing Resolution 26 of the Politburo. Therefore, from the provincial leadership to the investment and investment promotion agencies, everyone has strived to connect and establish comprehensive, multi-faceted, and effective cooperative relationships. This was highly praised by Mr. Do Nhat Hoang, Director of the Foreign Investment Department of the Ministry of Planning and Investment, during a recent meeting: “The leaders of Nghe An province are very active, decisive, and attentive, participating in many seminars and investment promotion events organized by the Ministry to connect investment to Nghe An. The Nghe An Provincial Investment Promotion Center is also very active in connecting with businesses. In terms of geographical location and infrastructure, Nghe An is at a disadvantage compared to Vung Tau, Binh Duong, Hanoi, Hai Phong, Da Nang…”

However, South Korea and Japan still highly appreciate Nghe An's investment promotion efforts with these countries. During the recent investment promotion trip to Japan organized by the Ministry of Planning and Investment, we met many investors there who were very interested in Nghe An in general and Nghe An's ginger products in particular, because the Japanese no longer want to buy goods from China. Even before we started offering our products, they came to Nghe An to learn more and meet with Nghe An businesses to discuss projects for processing ginger and bananas in the highland districts. This is a very good sign for Nghe An to implement high-tech ginger and banana processing projects for export.” Regarding this issue, Mr. Truong Van Hien – representative of the Nghe An Agricultural Materials Joint Stock Company – the investor of the Ky Son ginger and Tuong Duong banana processing project (using tissue culture technology) for export to Japan, said: “The Corporation is determined to succeed in order to both create an outlet for ginger farmers in Ky Son and secure support for high-tech agricultural projects in the western part of the province!”

“Thanks to the implementation of various solutions in many fields, including industry, construction, trade, and services, many quality projects are coming to Nghe An. The province is paying close attention to and accelerating land clearance for each project. For example, the Vingroup project, which will be a high-end project to build a model urban area with a large commercial center, is currently being prioritized by the province for land clearance. Many issues related to investors are being actively addressed by relevant departments and levels. The province is accelerating administrative reforms and is determined to ensure that projects coming to Nghe An are effective and create new milestones for Nghe An's socio-economic development,” affirmed Mr. Huynh Thanh Dien, Vice Chairman of the Provincial People's Committee.

Thus, it can be seen that Nghe An's investment promotion and project attraction efforts in the third quarter of 2014 achieved many successes. Investors are increasingly confident in coming to Nghe An; consensus has been created with local people in project areas to expedite land clearance. Furthermore, the ongoing and long-term work to ensure businesses can invest with confidence and achieve high efficiency is a crucial issue in the future.

Chau Lan