Party Building

Building a solid foundation for a new stage of development -Part 4: Proactively catching investment waves, reaching out to attract FDI

Duc Chuyen - Thanh Duy DNUM_AEZBAZCACE 17:17

Thanks to breakthrough reforms in the business environment and administrative procedures, along with a proactive strategy to approach investors, Nghe An has attracted a series of technology "eagles" such as Foxconn, Luxshare, Goertek and many other big names. With the spirit of "5 readiness", the province has built a solid foundation for sustainable development, creating a spillover effect in the international business community.

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Duc Chuyen - Thanh Duy • October 5, 2024

Thanks to breakthrough reforms in the business environment and administrative procedures, along with a proactive strategy to approach investors, Nghe An has attracted a series of technology "eagles" such as Foxconn, Luxshare, Goertek and many other big names. With the spirit of "5 readiness", the province has built a solid foundation for sustainable development, creating a spillover effect in the international business community.

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In the 2020-2025 term, Nghe An is undergoing a dramatic change in attracting foreign direct investment. From a locality facing many difficulties in attracting FDI, Nghe An has suddenly become a new stronghold for the world's major technology companies. Remember, on October 5, 2022, on the homepage of Apple (the world's leading technology and phone group; the first company in the world with a brand value exceeding 1,000 billion USD), posted quite interesting information related to Nghe An: "Starting from 2021, Nghe An, along with many other cities in the US, Germany, Japan, Korea, India, China... are the addresses of factories of partners that are manufacturing products for American technology companies". Specifically, in Nghe An is the factory of Luxshare Precision Industry Company Limited in VSIP Industrial Park.

1. Nghệ An trong trong danh sách các địa điểm trên thế giới sản xuất các sản phẩm của Apple
The homepage of Apple Technology Corporation (USA) announced for the first time Nghe An in the list of locations in the world producing "apple" products from 2021. Photo: Thanh Duy

Nikkei Asia - a prestigious English-language weekly magazine belonging to Japan's leading media group Nikkei, specializing in reporting on the economic, financial, business and investment situation in the Asian market, said: "In 2021, Luxshare's factory in Nghe An was for the first time on Apple's very strict capital list."

It can be said that the keyword “Nghe An” appearing on Apple’s homepage and in the Nikkei Asia article has great significance for promoting the province’s investment environment to domestic and foreign investors; or in other words, this is a guarantee of Nghe An’s prestige when joining the fierce competition to attract FDI.

2. Hình ảnh KCN WHA Industrial Zone Nghệ An trên tờ Nikkei Asia
Image of WHA Industrial Zone 1 Nghe An on Nikkei Asia. Photo: Thanh Duy

Not only the factory of Luxshare Precision Industry Company Limited, but in the past 4 years, technology giants who are partners of Apple, Samsung... have chosen Nghe An to "nest" such as: Foxconn, Everwin Precision, JuTeng, Sunny - names that when looking at, any locality would be willing to roll out the red carpet to invite. Indeed, if you look at the "resumes" of the above names, you will feel the great significance when these high-tech corporations invest in Nghe An, it does not stop at the specific results through the investment efficiency of the project, but also creates a ripple effect that attracts other investors to the province.

Đường bộ cao tốc Bắc - Nam phía Đông qua Nghệ An và đường N2 trong Khu Kinh tế Đông Nam hoàn thành tạo vị trí đắc địa cho KCN VSIP Nghệ An II tại huyện Diễn Châu. Ảnh: Thành Cường
The completion of the North-South Expressway in the East through Nghe An and the N2 Road in the Southeast Economic Zone creates a prime location for VSIP Nghe An II Industrial Park in Dien Chau District. Photo: Thanh Cuong

So what makes the "big guys" above "choose to entrust their gold" to Nghe An, even though the province is geographically far from the two major economic centers of the country, the Northeast and the Southeast?

It can be said that the above results are the product of a long-term preparation process of Nghe An from previous terms, and were highly promoted in the 2020-2025 term, with many methodical and drastic approaches and steps.

The formula for success lies in the 5 “ready” messages that the province widely announced to the domestic and foreign business community with a concise content in 20 words: Simple procedures, ready land fund, abundant human resources, complete infrastructure, and responsible companionship.

The first,is ready for planning.

Monday,is ready for investment.

Hạ tầng giao thông hoàn thiện với trục đường N5 trong Khu Kinh tế Đông Nam tạọ kết nối thuận lợi cho Khu Công nghiệp WHA Industrial Zone 1 Nghệ An tại huyện Nghi Lộc. Ảnh: Thành Cường
Completed traffic infrastructure with N5 road axis in the Southeast Economic Zone creates convenient connection to WHA Industrial Zone 1 Nghe An in Nghi Loc district. Photo: Thanh Cuong

Tuesday,is to be ready for essential infrastructure: Nghe An province focuses on mobilizing investment resources to complete important and essential infrastructure such as: Cua Lo Deep Water Port Investment Project; Vinh International Airport Upgrade and Expansion Project; Coordinate with the Ministry of Transport to soon complete the North-South Expressway Project through Nghe An province; complete the infrastructure system and social services, housing for workers, housing for foreign experts; high-quality educational, vocational training and medical facilities; international standard commercial, service, hotel and resort facilities;

Wednesday,is ready in terms of human resources. With the advantage of more than 1.6 million people of working age, annually adding about 45,000 people to the labor market, of which 30,000 are trained workers; a multi-sector, multi-field vocational training system with 17 universities, colleges and 70 vocational training facilities. Nghe An is ready to provide enough human resources in both quantity and quality for foreign-invested enterprises in the area.

ao động làm việc tại nhà máy trong KCN VSIP Nghệ An. Ảnh: Thành Duy
Workers at a factory in VSIP Nghe An Industrial Park. Photo: Thanh Duy

Thursday,is to be ready to innovate, reform, and substantially improve the investment and business environment; simplify administrative procedures in the direction of "One-stop shop", "One-stop shop", especially investment procedures in economic zones and industrial parks are resolved quickly and conveniently. Build a creative and serving government; Take the measure of trust and satisfaction of businesses as the core goal to promote economic development.

During the 2020-2025 term, the Provincial Party Standing Committee issued Resolution No. 07-NQ/TU, dated December 23, 2021 on the development of industry, handicrafts and craft villages in the period of 2021 - 2030; Project No. 14-DA/TU, dated January 25, 2022 on training and developing skilled human resources in the period of 2021 - 2025. In addition, after receiving consensus from the Provincial Party Standing Committee, the Provincial People's Committee approved the Project on developing key infrastructure systems in the period of 2021 - 2025 in Decision No. 5241/QD-UBND dated December 31, 2021; Project on developing the Southeast Economic Zone into an economic growth engine of Nghe An province in Decision No. 4514/QD-UBND dated November 25, 2021 and promulgating Plan No. 812/KH-UBND, dated December 29, 2021 to implement the project; Project on developing enterprises in Nghe An province to 2025 in Decision No. 5277/QD-UBND dated December 31, 2021; Project on improving the investment and business environment, enhancing the efficiency of investment attraction in the period of 2021 - 2025 in Decision No. 235/QD-UBND, dated January 24, 2022.

Bản đồ phương án phát triển khu công nghiệp của tỉnh Nghệ An giai đoạn 2021 - 2030, tầm nhìn đến năm 2050.
Map of industrial park development plan of Nghe An province for the period 2021 - 2030, vision to 2050.
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Along with the "5 ready", Nghe An also strongly changed the investment attraction method compared to the traditional way. Previously, at the beginning of Spring, Nghe An often organized the Meeting with Investors. This is an annual activity to meet, express gratitude, exchange and share information between the Party Committee and the government of Nghe An province with investors and businesses that are interested in and contribute to the socio-economic development of the province; at the same time, to propagate, introduce and promote the potential, advantages, mechanisms, preferential investment policies, promote trade and tourism to investors. However, after the 12th Conference in the Spring of Canh Ty 2020, when realizing that this form was no longer suitable in the context, situation and new requirements, Nghe An boldly stopped. Instead, the province proactively carried out promotional, promotion and investment attraction activities with the motto of focusing on key points in a two-way form.

Bí thư Tỉnh ủy Thái Thanh Quý làm việc tại Tập đoàn Motherson (Ấn Độ) chuyên về sản xuất linh kiện tô tô. Ảnh: Thành Duy
Provincial Party Secretary Thai Thanh Quy works at Motherson Group (India) specializing in manufacturing auto parts. Photo: Thanh Duy

On the outbound side, instead of waiting for investors to come, the province proactively connects and seeks investors through bridges such as businesses, entrepreneurs; ministries, branches; foreign diplomatic and trade agencies in Vietnam such as: Embassies of countries such as Japan, Korea, Singapore, Thailand, India; international organizations and agencies, Foreign Business Associations such as: JETRO (Japan); KOICA, KCCI, KoCham (Korea); AmCham (USA); EuroCham (Europe); US-ASEAN Business Council... and Vietnamese diplomatic agencies abroad to promote investment.

Provincial leaders also "knocked on the doors" of domestic and foreign corporations and enterprises, organizing investment promotion "roadshows" in many countries such as India, Singapore, China, Japan, Korea...

Chủ tịch UBND tỉnh Nguyễn Đức Trung và đoàn thăm nhà máy sản xuất của Tập đoàn Everwin Precision Hong Kong Company Limited tại thành phố Đông Quản, tỉnh Quảng Đông (Trung Quốc). Ảnh: Phạm Bằng
Chairman of the Provincial People's Committee Nguyen Duc Trung and the delegation visited the manufacturing plant of Everwin Precision Hong Kong Company Limited in Dongguan City, Guangdong Province (China). Photo: Pham Bang

In the afternoon, the provincial leaders always welcome and support whenever there are interested investors; in particular, the province always attaches importance to on-site investment promotion by supporting investors in the process of surveying, implementing procedures for granting Investment Certificates, and site clearance; at the same time, organizing meetings and dialogues to remove obstacles and difficulties for investors. Once investors choose Nghe An and have peace of mind and trust, they continue to become bridges, introducing the province to other businesses, such as the case of investor JuTeng (Taiwan) who, after investing in Hoang Mai I Industrial Park, became a "family member" to support the province in attracting other businesses.

Bí thư Tỉnh uỷ cùng lãnh đạo các Ban, sở, ngành chụp ảnh lưu niệm cùng lãnh đạo Tập đoàn Quốc tế Ju Teng và các nhà cung ứng. Ảnh: Phạm Bằng
The Provincial Party Secretary and leaders of departments, agencies and branches took souvenir photos with leaders of Ju Teng International Group and suppliers, 2022. Photo: Pham Bang

These changes in focus have brought about clear results in attracting investment, especially foreign direct investment (FDI). The quantity and quality of investment projects are high.

In 2022, for the first time, Nghe An province entered the top 10 localities attracting the largest FDI in the country, with a total newly granted and adjusted capital of 961.3 million USD; in 2023, it entered the top 8 localities attracting the largest FDI in the country, with a total capital of more than 1.6 billion USD and was the only province out of 14 provinces in the North Central and Central Coast regions to do so. In the first 9 months of 2024, the province also attracted over 730 million USD in FDI capital.

Đồ họa: H.Q
Graphics: HQ

Although investment capital is needed, Nghe An does not act in a "grabbing-up-the-little-things" manner, trading growth for the environment and social security, but always follows the development viewpoint in the Document of the 19th Provincial Party Congress: "Persistently implementing the orientation of sustainable development, at the same time determined to create breakthroughs in a number of key areas and sectors. Economic development is associated with social progress and equity, and environmental protection".

Nghe An aims to attract 3-3.5 billion USD in FDI capital in the 2021-2025 period and 4.5-5 billion USD in the 2025-2030 period. According to the announcement of the Ministry of Planning and Investment, by the end of August 2024, Nghe An currently ranks 25th out of 63 provinces and cities in terms of FDI capital, with 158 valid FDI projects, with a total registered capital of more than 4.6 billion USD.

Khu công nghiệp Hoàng Mai I có diện tích gần 265ha cơ bản đã được lấp đầy. Ảnh: Thành Cường
Hoang Mai I Industrial Park has an area of ​​nearly 265 hectares. Photo: Thanh Cuong

(To be continued)


>>Home
>>Part 1: Looking straight at the truth
>>Part 2: The key to 'focus, focus'
>>Part 3: Decided to 'Pull out the nails under the carpet'
>>Final episode: Ready to enter a new era

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Building a solid foundation for a new development phase - Part 4: Proactively welcoming investment waves, reaching out to attract FDI
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