Nghe An removes difficulties and obstacles for businesses and investors

Business problems

Construction started in June 2012, the road project from Hoang Mai 2 Industrial Park to Tan Thang Cement Factory (Tan Thang commune, districtQuynh Luu) is still under construction. Currently, the road section near the factory area is completing the drainage system, the road surface has not been paved, and some landslides have buried the road. Currently, heavy trucks cannot travel on this route.

The road project from Hoang Mai 2 Industrial Park to Tan Thang Cement Factory (Tan Thang Commune, Quynh Luu District) has been unfinished for more than 10 years. Photo: Van Truong

The road project from Hoang Mai 2 Industrial Park to Tan Thang Cement Factory was approved in Decision No. 3865/QD-UBND dated August 31, 2010 and Adjustment Decision No. 2437/2017 of Nghe An Provincial People's Committee, with a total investment of over 378 billion VND, invested by the Provincial Project Management Board for Investment and Construction of Civil and Industrial Works.

Up to this point, the route has completed the asphalt concrete pavement project along the route length of 7,038 m/7,338 m (remaining asphalt concrete pavement volume is 300 m).

ProjectTan Thang Cement FactoryApproved by the Government according to the development plan of Vietnam's cement industry for the period 2011-2020 and orientation to 2030, the total investment of the entire project is nearly 5,000 billion VND. This is a key investment attraction project of Nghe An province. Currently, Tan Thang Cement Factory has been completed and put into use with a capacity of about 1.6 million tons/year, but there are difficulties in the process of transporting goods and equipment to the place of consumption.

At WHA Industrial Zone 1, according to Ms. Bich Lien - Director of WHA Industrial Zone Nghe An Joint Stock Company, the WHA 1 project in Nghe An is the first project ofWHA Group in VietnamPhase 1 has attracted 22 investors, including Goertex Company, the largest FDI enterprise in Nghe An. Phase 2 of WHA 1 has a total area of ​​350 hectares in Nghi Hung and Nghi Dong communes (Nghi Loc), and has cleared 300 hectares.

Regarding the proposal, the business wants the North-South Expressway to be completed soon because the road is near the industrial park. In addition, the business wants the infrastructure of telecommunications, water, electricity, highways, schools, luxury hotels, and logistics services to be more and more synchronized and convenient to serve investors.

In the first 3 months of 2023, while products such as processed milk, cooking oil, and fish sauce of Nghe An still exploited the domestic market well and maintained a stable growth rate, export products encountered difficulties due to market impacts. First of all, many textile and garment enterprises lacked orders and had to operate at a standstill. Some enterprises had to let workers go.

Many export items are facing difficulties due to the impact of the economic recession. Photo: Tran Chau

Products such as MDF and laminated wood panels have decreased sharply due to the US and European countries investigating the avoidance of anti-dumping and anti-subsidy taxes on plywood using hardwood materials imported from Vietnam, making production activities of factories in the province difficult.

Some wood processing enterprises such as Tan Viet Trung and The Gioi Go had to stop operating. Enterprises producing and exporting white limestone powder products faced many difficulties in selling their products due to fierce competition with Malaysian enterprises; difficulties in completing customs clearance procedures, because the customs authority set a risk reference price for superfine white limestone powder products much higher than the actual price, prolonging the time of goods delivery of enterprises.

North-South Expressway construction companies are also facing difficulties due to rising steel and petrol prices. Photo: Tran Chau

Royal Food canned fish products face many difficulties in terms of input materials (mackerel and herring in the country are not enough to serve production, there is no stable source; the fish source in Nghe An is actually not enough because Nghe An fishing boats also have to fish in other seas). Royal Food Company Limited has to import raw materials from Russian fishing boats, but due to the prolonged war between Russia and Ukraine, there is a shortage of raw materials.

Regarding sugar products, which are important industrial products of Nghe An, produced by 3 factories in the area, the output decreased by 4.17% compared to the same period due to the continued decrease in sugarcane area, and consumption difficulties due to the increase in smuggled sugar across the border. Mr. Ngo Van Tu - General Director of Nghe An Sugarcane Company Limited said that the Company produced 69,000 tons of sugar, currently having an inventory of about 50,000 tons.

Another product that is facing difficulties is electronic components. Due to the impact of the global economic crisis, factory production has decreased compared to the same period last year, many old orders have been cut due to changes in product technology. Products such as phone headsets and phone speakers have decreased by 32.82%...

Synchronize support solutions

To remove obstacles and difficulties for Tan Thang Cement Factory, recently, Nghe An Provincial People's Committee continued to issue Official Dispatch No. 1016/UBND-CN on urgently completing the road project from Hoang Mai 2 Industrial Park to Tan Thang Cement Factory. Standing Vice Chairman of the Provincial People's Committee Le Hong Vinh commented: The implementation of the road project from Hoang Mai II Industrial Park to Tan Thang Cement Factory has not been completed yet, which is too slow compared to the requirements and commitments of the investor.

The Provincial People's Committee assigned the Director of the Project Management Board for Investment and Construction of Civil and Industrial Works of Nghe An Province to be responsible for the failure to complete the project on schedule as required before the Provincial People's Committee and the Chairman of the Provincial People's Committee in accordance with the direction in Document No. 8667/UBND-CN dated November 3, 2022 of the Provincial People's Committee; urgently complete the project and put it into use in the first quarter of 2023.

For the North-South Expressway, the Provincial People's Committee also regularly organizes meetings and issues documents urging the Department of Transport and localities to coordinate with Committee 6 of the Ministry of Transport to thoroughly resolve problems related to site clearance and speed up progress to ensure traffic when the expressway intersects a number of roads and industrial zones.

Currently, on the world level, China has begun to reopen its trade, the US economy has grown higher than expected; some emerging economies in Asia such as India and ASEAN have grown positively...

Domestically, the State's policies to stimulate public investment and support enterprises have contributed to the recovery of production activities. However, the world economy still has unfavorable and unpredictable developments, the real estate market is still in recession, while this is the consumption channel for many products of the construction industry such as construction materials, wood, glass, steel, corrugated iron, and uses a lot of labor...

Enterprises and investors hope to have difficulties resolved promptly, avoiding issues being raised repeatedly in meetings. Support legal procedures on investment, land, construction, environment, etc.; resolve difficulties for key projects such as the North-South expressway, coastal roads; Goetek electronic components and precision equipment factory phase 1; Everwin Precision project phase 1; Huali export footwear production and processing project; Matsuoka Thanh Chuong garment factory, etc.

Processing medicinal herbs at TH Group in Nghia Dan. Photo: Tran Chau

To facilitate the "framework" for businesses to grasp and seek investment opportunities, Nghe An is completing the Nghe An Provincial Planning dossier for the period 2021 - 2030, with a vision to 2050, to submit to the Provincial People's Council for approval; to submit to the Prime Minister for approval. Implementing procedures to prepare for the groundbreaking of the Tho Loc Industrial Park project; continuing to coordinate with the Ministry of Planning and Investment to submit to the Prime Minister for approval of the investment policy of the Hoang Mai II Industrial Park Project.

The Provincial People's Committee assigned functional agencies to review the overall supply of land for leveling to ensure service for technical infrastructure projects in the province, especially large projects such as:VSIP Industrial Park, WHA Industrial Park Project, North-South Expressway, etc. Continue to review and inspect the current status, exploitation situation, and implementation of related obligations of mining areas in the province.

The Provincial People's Committee also assigned departments and branches,Localities focus on drastically, synchronously and effectively implementing tasks and solutions for socio-economic development in 2023 with a proactive spirit, actively removing difficulties, promoting production and business of industries and fields. Working groups established by the Provincial People's Committee resolutely carry out assigned tasks. In addition, focus on disbursing public investment, accelerating the implementation progress of 3 National Target Programs.