Nghe An: Infrastructure projects waiting for secondary investors

(Baonghean) - In 2017, although Nghe An's socio-economic targets reached and exceeded the plan, the investment attraction sector still faced many difficulties. Large projects registered for investment in the area were implemented slowly, some projects were stuck, requiring all levels and sectors to urgently accompany investors to resolve the issues.

The 2017 Investment Attraction Report shows that: The structure of industries and sectors attracting investment has shifted towards increasing the proportion of the service sector (trade and tourism) with 104 projects, accounting for 25.51% of the total registered investment capital, but most of them are small-scale; industrial production and processing with 48 projects, accounting for 64.35% of the total registered investment capital. Most of the projects licensed in 2017 are completing investment procedures according to regulations and have not yet come into operation. Therefore, they have not contributed to the state budget.

During the year, there have not been any large, proactive investment projects that can have a ripple effect on the province’s socio-economic development. In addition, infrastructure investment projects are still pending.

Construction of road to VSIP urban area. Photo: Chau Lan

VSIP Nghe An Industrial, Urban and Service Park project has almost completed the industrial park infrastructure and is accelerating the construction progress of urban infrastructure. Site clearance work is basically completed. At the construction site, the construction of the road to VSIP urban area is being accelerated.

Up to now, 11 secondary investors have committed to invest with a total area of ​​7.6 hectares and 2,500 m2 of ready-built factories, with a total registered capital of more than 420 billion VND. The site clearance work has been completed on 112 hectares, and 1 main road and 9 internal roads are being built in the industrial park. At the same time, the wastewater drainage system, rainwater drainage system, water supply system, and lighting system along the roads are being constructed.

Conveyor system transporting cement to Nghi Thiet port of Song Lam Cement Joint Stock Company. Photo: Chau Lan

According to the report of VSIP Nghe An One Member Co., Ltd., in 2017, this unit completed 1 main road and 3 internal roads; the remaining roads are expected to be completed by the end of December 2017. VSIP Nghe An has also completed the construction of a number of works serving the activities of the Industrial Park including: Office, Wastewater Treatment Plant, Fire Prevention Station, Pre-built Factory... Total investment capital implemented is more than 264 billion VND.

The company has signed land lease commitments with 5 secondary investors from Malaysia, Hong Kong and China operating in the fields of industrial elevators and floor cleaning machines, chemicals, garments and accessories... with a total committed land lease area of ​​55.5 hectares. VSIP Nghe An also actively contacted 1,250 customers (by phone, email), met with hundreds of businesses (first time 350, next time 120), welcomed 250 investors to survey and learn about investment, including 18 FDI business delegations (from Japan, Hong Kong, Korea, Singapore, Malaysia, China, Poland) and welcomed 205 domestic customers to VSIP Nghe An to survey investment...

Investment project in Nghe An 2017. Graphics: Huu Quan

Despite the efforts of the Provincial People's Committee and industrial park infrastructure investors, attracting FDI projects to Nghe An is not easy. In the Hemaraj industrial park in Nghi Loc, construction was expected to start in October 2017, but many procedures have not been completed yet, and the search for land mines and conversion of forest land are still stuck. People are waiting for compensation to be resolved soon while investors are still waiting.

The situation is also quite difficult when this industrial cluster still depends on secondary investors from Thailand and other countries. With a large area, large volume of landfill, high infrastructure investment costs, if investors are not determined to speed up, it is unknown when the attraction of projects and factories to this industrial park can be implemented (!?).

According to Mr. Nguyen Tien Tri - Director of the Provincial Investment Promotion Center: To further enhance the effectiveness of investment promotion activities in 2018 and the following years, we hope that the province, all levels and sectors will focus on resolving difficulties and obstacles of projects being implemented in the province to speed up progress, soon promote the effectiveness of projects as well as build the confidence of investors in the investment and business environment of the province.

At the same time, strengthen cooperation with strategic investors to attract investment in: VSIP Nghe An urban and service industrial park; WHA Hemaraj 1 industrial park and Hoang Mai 1 industrial park. Focus on resolving necessary procedures and conditions to decide on investment policies for projects of strategic investors (Vingroup, FLC, TH,...) in various fields. In addition, continue to direct strong administrative reforms, review and urge the settlement of outstanding investment policy documents in 2017.

Pearl