New resources from attracting investment.

Over the years, Party committees and authorities at all levels in Nghe An have focused on directing efforts to improve the investment environment and develop and supplement investment incentive policies. As a result, attracting investment is one of the important development milestones in the 2010-2015 term, with many large-scale projects creating jobs for many workers and generating resources to contribute to Nghe An's effective poverty reduction efforts.

Production line at Sabeco Song Lam Packaging Joint Stock Company (Bac Vinh Industrial Park). Photo: Van Doan

"Bringing industry to the villages"

Bringing industry to rural areas is a remarkable achievement in Nghe An's investment attraction efforts during this term. Many factories have been established right in rural villages, utilizing the abundant labor force in each area. This is the reality in the districts of Yen Thanh, Nam Dan, Hung Nguyen, Dien Chau, Do Luong, etc.

As a semi-mountainous, predominantly agricultural commune with low industrial production value and a lack of employment opportunities for its young people, the Party Committee and People's Committee of Nam Giang commune (Nam Dan district) have identified attracting investment, developing industry, creating jobs, and transforming the labor structure as key priorities. The Party Committee issued a specialized resolution, the government developed a plan, and carried out land use planning in a scientific and rational manner. Thanks to the active efforts of the district and commune in attracting investment, the Nam Giang Industrial Cluster is now basically full with three fairly large projects, two of which are operating stably: Haivina Kim Lien Factory and Hanosimex Nghe An branch, both belonging to the Hanoi Textile and Garment Corporation. Ms. Bui Thi Hien, a worker at the Hanosimex Textile and Garment factory, shared: “Thanks to the factory being located in the area, I have regular work, it's close to home, and I earn over 3 million VND per month.”

Also in Nam Giang, the Nam Giang High-Tech Industrial Production Complex project, invested by VN Nam Dan Van An Co., Ltd., has a total registered capital of 2,100 billion VND, implemented on an area of ​​25 hectares, focusing on the processing of precious metals. The positive movement of economic restructuring from agriculture to industry in Nam Giang commune is clearly evident. Currently, there are 14 agencies and businesses in the area. The Nam Giang Industrial Cluster alone employs nearly 5,000 workers, including over 900 local residents. Furthermore, the operation of these businesses creates opportunities for local workers to develop services supporting the factories, such as accommodation, goods, and food supplies.

Leveraging its potential and advantages, Yen Thanh district has recently attracted two 100% foreign-owned enterprises. These are Globe Farm Company (South Korea), which cultivates bananas for export in Vien Thanh commune on 200 hectares, employing 300 workers and with an investment of 3 million USD; and MLB Tenergy Co., Ltd. (Japan), which manufactures export garments in the town's industrial cluster, employing 500 workers. Many other businesses are currently registering to invest in the area. Tay Nghe Yen Thanh Joint Stock Company has also built a tunnel brick factory in the Cua Nuong – Dong Thanh Industrial Cluster on 10 hectares, employing 150 workers, and has commenced production. Mr. Nguyen Tien Loi, Chairman of the Yen Thanh District People's Committee, said: "The district has always identified attracting investment as a breakthrough direction to strongly shift the economic structure towards industrialization, effectively attracting investment capital to the homeland, and creating jobs for many workers. In addition to the general mechanisms of the province, the leaders of Yen Thanh district are committed to ensuring favorable conditions for investors."

In projects and factories built under the investment attraction mechanism in districts such as Anh Son and Do Luong, a friendly and new image has been created for the countryside. Especially, the children of farmers working in these factories have been exposed to an industrial work style, with shifts and guaranteed lunch provided at the factory (not included in salary), allowing them to return home in the evening, care for their children, and attend to family matters. Not only has industry been brought to the villages, but some districts have also attracted high-tech projects such as Nghia Dan with the TH milk factory, clean vegetable and flower projects, and new technology plywood factories. Other factories are also exploiting the potential advantages of Nghe An's land, such as the clean charcoal projects in Anh Son, the Song Lam cement factory project, and the textile and garment complex of the Hanoi Textile and Garment Corporation.

To attract investment to localities and create new development opportunities for districts, the province has directed localities to proactively promote and attract investment. The province has also allocated budget to support investment attraction in localities and directed localities to clear land. Localities have also proactively resolved difficulties and obstacles for investors and directly promoted investment.

Construction of the ROYAL FOOD seafood processing plant by Thailand in the Southeast Economic Zone. Photo: Chau Lan

A comprehensive and effective solution.

During the 2010-2015 term, Nghe An province made significant efforts in issuing mechanisms and policies to create a legal framework and a favorable investment environment for investors. These included the issuance of Decision No. 02/2010 on investment incentives in the Southeast Economic Zone; the Provincial People's Committee's approval of the Project to Improve and Enhance the Provincial Competitiveness Index in Decision No. 2595/2012; the issuance of Decision No. 21/2014 on policies to support investment in the construction of bus stations and road transport parking lots in the province; and mechanisms to encourage and support organizations and individuals to invest in new technologies, technological innovation, research, and application of scientific and technological advancements in the province.

The province has also implemented administrative procedure reforms according to the Government's Project 30 increasingly effectively. The Provincial People's Committee issued Decision 542/2/2014 on the control of administrative procedures in the province and Decision 480/2014 on the Plan to promote the reform of the civil service and public officials in Nghe An province in 2014, contributing to improving the investment and business environment to be increasingly open, transparent and attractive. In addition, Directive No. 17-CT/TU dated December 3, 2013 of the Provincial Party Committee Standing Committee has strongly impacted and rectified administrative discipline and order, improving the quality of public service delivery and public services.

Investment promotion activities have rapidly become more in-depth, focused, and targeted. The content of promotion has been diversified and innovated, placed under the direct guidance of the Provincial Party Committee and the Provincial People's Committee, along with the involvement of various sectors and levels; thus, the quality and effectiveness of investment promotion activities have been continuously improved. The Investment Promotion and Development Consulting Center has built and operated an investment promotion information website in four languages ​​(Vietnamese, English, Japanese, and Korean); successfully organized many important investment promotion events such as the North Central Investment Promotion Conference, the Spring Investor Meeting, investment promotion in Japan and the United Kingdom, and the Korea Investment Promotion Conference... focusing on key partners with high potential and widespread influence.

Investment promotion efforts have expanded and strengthened coordination with central investment promotion agencies, foreign organizations, and provincial departments to work with important organizations and partners from Japan, South Korea, Singapore, Taiwan, and the Czech Republic; and many large corporations such as Samsung, Hoa Sen Group, Becamex Binh Duong and VSIP, Nguyen Kim, FPT, Vinakansai, and Vietnam Textile and Garment Group... Continuously in 2013 and 2014, provincial leaders organized overseas investment promotion activities with organizations such as JETRO and KOTRA; and directly worked with localities such as Ho Chi Minh City, Binh Duong, Binh Phuoc, Binh Dinh, and Quang Ngai... to exchange experiences, cooperate in socio-economic development, and attract investment.

In order to promptly address difficulties and obstacles for investors, provincial leaders and leaders of departments and agencies have organized regular dialogues to receive feedback and take appropriate measures. In particular, dialogues have been held to resolve difficulties and obstacles on specific topics such as real estate and projects by Korean investors. Media outlets have also carried out propaganda and promotion of the province's investment potential and opportunities in publications, thereby strongly disseminating information about Nghe An's environment, potential, and strengths.

With many comprehensive, synchronized, and strong solutions, Nghe An's investment attraction efforts during the 2010-2015 term yielded tremendous results. The number of investment projects registered in the province from 2011 to 2014 was 320 projects/62,174.4 billion VND, creating momentum to boost GDP growth and contributing to the shift in the province's economic structure towards industrialization and modernization. Investment projects in urban areas have contributed to urban beautification, creating a new, modern appearance for urban areas, especially Vinh City, Cua Lo Town, Dien Chau...; the banking service system and commercial service centers are relatively developed; and the tourism infrastructure, including high-end infrastructure (golf courses, 5-star hotels, resorts...), has also developed. Export turnover has increased (textiles, electronic components, toys, etc.), especially with the rapid growth of FDI enterprises. Major projects attracted include: Saigon Beer – Song Lam Brewery, Hoa Sen Steel, Ma San Food Industrial Park, MDF factory, BSE Electronics Factory, Haivina Kim Lien Garment Factory, TH Milk Factory…

Speaking to reporters at the project construction site, Mr. Hoang Chi Phan, project manager of Royal Foods (Thailand), said: “Royal Foods Vietnam Co., Ltd. is headquartered in My Tho Industrial Park, Tien Giang province. The company is investing in two projects: Royal Foods Nghe An Co., Ltd. and Fresh Food and Cold Storage Co., Ltd., located in Zone B, Nam Cam Industrial Park, Southeast Economic Zone, Nghi Long Commune, Nghi Xa - Nghi Loc District. The business activities include processing and canning seafood; preliminary processing of agricultural, seafood, and meat products; fishmeal production; production of empty cans; and fresh food cold storage for product preservation. When the project becomes operational (expected in July 2015), it will leverage the seafood resources, labor potential, geographical location, and raw material development capabilities of Nghe An province and neighboring provinces, as well as the demand for seafood products in these localities.”

Construction is underway on the Massan Northern Food Industry Center project in Nghe An province. Photo: Provided.

Speaking about the effectiveness of revenue collection from projects, Mr. Nguyen Dinh Hoa - Director of the Nghe An Tax Department said: “Investment projects increasing year by year are a new source of revenue for the province and contribute significantly to the provincial budget. Many projects contribute a large amount to the budget, such as: Saigon - Song Lam Beer Factory (600 billion VND/year), Hanoi Beer (350 billion VND/year), Ban Ve Hydropower Plant (70 billion VND/year), Sabeco Packaging Factory, Hua Na Hydropower Plant, Khanh Vinh Tobacco Factory, etc. From the wave of investment from outside the province, businesses in the province have also boldly invested, innovated technology, attracted capital, exploited the potential strengths of the locality, especially applying high technology such as: TH concentrated industrial dairy farming and processing, MDF wood factory, ginger and banana processing project of Nghe An Agricultural Materials Joint Stock Company, Minh Anh garment factory…

Good news for Nghe An in 2014 was the issuance of Decision 67/2014/QD-TTg by the Prime Minister, amending and supplementing Clause 1, Article 2 of the Regulations on the Operation of the Southeast Nghe An Economic Zone, issued with Decision 21/2010/QD-TTg dated March 3, 2010. Specifically, the Southeast Nghe An Economic Zone has a total area of ​​approximately 20,026.47 hectares, including: the existing economic zone area of ​​18,826.47 hectares and an additional area of ​​approximately 1,200 hectares, encompassing the entire Hoang Mai Industrial Park and Dong Hoi Industrial Park. Simultaneously, the Prime Minister also announced the adjustment of the general planning for Vinh City until 2030, with a vision to 2050, opening up many new development opportunities for Nghe An.

Mr. Nguyen Van Do, Director of the Nghe An Department of Planning and Investment, stated: "One of the strong solutions that must be implemented from 2015 onwards is developing infrastructure to create favorable conditions and a foundation for attracting investment. Infrastructure here includes focusing on directing the construction of essential infrastructure, prioritizing investment capital allocation for building infrastructure systems, balancing annual capital allocation for land clearance, proactively creating a reasonable clean land fund ready to welcome investors; maximizing resources to invest in the development of infrastructure in industrial parks, economic zones, transportation, and ports." Supporting investors in land clearance, labor supply and training, infrastructure investment inside and outside project boundaries, research, technology transfer, and the development of high-quality technology models... The province has a specific plan to promote investment in several infrastructure projects to attract investment, and these projects, with a high sense of responsibility and strong potential, will certainly be implemented soon, not only in the Southeast Economic Zone but also in the industrial parks of Tho Loc, Nghi Loc, Dien Chau, Dong Hoi, Hoang Mai 2, and Nghia Dan.

Reporters' Team