Removing obstacles and difficulties for Korean investors.

(Baonghean)Currently, many investment projects by South Korean investors are being implemented in Nghe An province. However, several obstacles are affecting their production and business operations. The Department of Planning and Investment and other relevant agencies are working on solutions to overcome these difficulties so that businesses can invest and produce with confidence. Nghe An Newspaper publishes excerpts of opinions from investors and leaders of departments and agencies regarding the obstacles and solutions to these obstacles in investment projects in Nghe An.

1. Globe Farm Vietnam Co., Ltd.'s banana planting and export project: Lack of land for project implementation.

Ms. Pham Thi Hong, farm manager of the fresh banana cultivation and export project (belonging to Globe Farm Vietnam Co., Ltd.) in Vien Thanh commune (Yen Thanh district), stated: The export banana farm project, with a total investment of 3 million USD, was granted Investment Certificate No. 271 043 000001 by the Provincial People's Committee on February 26, 2010. The land area used is 200 hectares, of which 1 hectare is for the packaging factory (leased from the State for 50 years); the remaining land is used for the farm: agricultural land allocated to households and individuals under Government Decree No. 64/ND-CP for tissue culture production; the export volume of whole banana bunches is 10,000 tons per year.

Growing bananas for export in Vien Thanh - Yen Thanh district.

Currently, the land lease contracts with farmers in Yen Thanh district and Vien Thanh commune have been completed for 52 hectares out of the planned 200 hectares of banana cultivation. In 2012, the company exported 60 tons and expects to export 200 tons in 2013. The company imported banana tissue culture from the Philippines for propagation and planting as part of the 2012 plan; in addition to the 52 hectares already planted (equivalent to 104,000 seedlings), the company's nursery still has nearly 40,000 seedlings (equivalent to planting nearly 20 hectares), but there is no land available for planting due to inaccurate initial zoning, resulting in significant losses for the company in terms of seedlings.

Furthermore, the access road to the project from National Highway 7 has not been cleared, preventing container trucks from entering the farm area to transport goods, which is causing difficulties in harvesting bananas. The Provincial People's Committee has directed Yen Thanh District and the Department of Natural Resources and Environment to address the company's issue.

* Mr. Nguyen Van Lap - Deputy Director of the Department of Agriculture and Rural Development, responded as follows:

- The land used for the banana plantation, leased from local residents, is located in Vien Thanh commune and neighboring communes. The Yen Thanh District People's Committee will actively direct the People's Committees of Vien Thanh commune and neighboring communes to work with residents to continue handing over the land to the company as agreed, ensuring that production and business needs are met.

- In addition, the company could consider surveying more land in two districts: Tan Ky and Con Cuong (these two districts have already been surveyed since 2010) to acquire an additional area of ​​approximately 200-250 hectares in adjacent areas/districts, sufficient to build a banana processing plant with adequate capacity when it becomes operational.

- Globe Farm Vietnam Co., Ltd. needs to accelerate the implementation of the banana planting and processing project in Vien Thanh commune, Yen Thanh district, and expand the project to two other districts: Tan Ky and Con Cuong. At the same time, it should regularly coordinate and report to the People's Committee of Yen Thanh district, Vien Thanh commune, and the Departments of Agriculture and Rural Development, Planning and Investment, and the Provincial People's Committee to understand and find ways to resolve difficulties for the investor.

Regarding transportation, Mr. Nguyen Hong Ky, Director of the Department of Transportation, responded as follows:

The project is currently facing difficulties in land clearance for two households at the beginning of the route (kilometer marker Km 0+000 - Km 1+000); the reason is that the compensation price for land clearance has not yet been agreed upon with these two households. We request that the Yen Thanh District People's Committee actively direct the Vien Thanh Commune People's Committee to quickly reach an agreement on compensation and land clearance for these two households, hand over the land to the construction unit for construction, and complete the project as soon as possible.

2. Investment project for the production of leather and textile products - Investor: Prex Vinh Garment Co., Ltd. (Lac Son Industrial Park - Do Luong District):Frequent power outages resulted in significant damage.
Representatives of the investors expressed frustration about the arbitrary power outage schedule in the past, which lacked prior notice to the company. From January to May 2013, there were 10 days of power outages, forcing the company to run generators for 3,055 minutes and consuming 1,920 liters of diesel fuel. The power company needs to notify the company in advance of the power outage schedule to facilitate the arrangement of alternative work days. A second difficulty the company raised was the incomplete construction of National Highway 15 in front of the factory, and the lack of street lighting on the road leading to the company, which could easily lead to accidents during shift changes.

Working shift at Prex Vinh Garment Factory (Do Luong). Photo: Luong Mai

* The Do Luong District Power Company issued Official Letter No. 72 dated June 5, 2013, with the following response from Mr. Nguyen Van Binh - Deputy Director:

According to a summary of 10 power outages on the 35kV 372E15.11 line from January to May 2013 related to Prex Vinh Garment Co., Ltd. in Lac Son Industrial Park (Do Luong District), there were 3 line failures; 1 due to the 110kV substation testing the circuit breaker without prior notice to Do Luong Power Company; 1 change in operating scheme lasting nearly 20 minutes; and 5 planned outages. For all planned power outages, Do Luong Power Company notified the Do Luong District People's Committee in writing and informed customers through Do Luong Radio and Television Station. For important customers, Do Luong Power Company also notified their representatives directly by telephone, in accordance with the "Regulations on conditions, procedures and processes for suspending or reducing electricity supply" stipulated in Decision No. 39/2005/TT-BCT of the Ministry of Industry and Trade.

In the event of a prolonged power outage due to malfunctions or force majeure, Do Luong Power Company will notify its important customers by phone, including Prex Vinh Garment Co., Ltd. in Lac Son Industrial Park, Do Luong.

Solutions for the future:Do Luong Power Company will manage and operate the power grid as safely as possible to ensure stable power supply to customers, including Prex Vinh Co., Ltd. In cases of planned power outages, we will maintain proper notification procedures and ensure that notifications are given to the correct recipients. In cases of force majeure, we will also notify important customers as quickly as possible.

Regarding the street lighting system on the road leading to Prex Vinh Company:

Do Luong District will consider planning and developing infrastructure for electricity, roads, and street lighting in the near future. Regarding accelerating the construction progress of National Highway 15 section passing through the factory: Nghe An Department of Transport will actively advise central ministries and agencies to pay attention and allocate capital to complete the project.

3. Haivina Kim Lien Garment Factory: Facing Insurance Issues

Mr. Kim TaeHyung, Director of Haivina Kim Lien Co., Ltd., stated: During the period of paying social insurance contributions from 2010 to the present at the Nam Dan District Social Insurance Office, the company has encountered many difficulties due to the ever-increasing and fluctuating number of employees, the continuous increase and decrease in benefits, and errors in data entry such as overlapping periods, procedures for printing insurance books and leaflets, medical issues, transferring healthcare facilities, unemployment insurance, etc. Therefore, the company needs support and guidance from the Provincial Social Insurance Office regarding insurance procedures. The company proposes transferring insurance procedures from the Nam Dan District Social Insurance Office to the Nghe An Provincial Social Insurance Office.

* Mr. Le Truong Giang - Deputy Director of the Social Insurance (BHXH) of Nghe An province, responded as follows:

The provincial Social Insurance agency will send officials directly to the unit to inspect, handle, and resolve difficulties and obstacles as reported, and at the same time guide the unit in implementing social insurance, health insurance, and unemployment insurance policies for employees in accordance with regulations.

On May 14, 2013, Haivina Kim Lien Co., Ltd. submitted a request to transfer its insurance procedures to the Provincial Social Insurance Agency. The Nghe An Provincial Social Insurance Agency agreed and issued a decision to adjust the decentralization of management of social insurance and health insurance collection; issuance of social insurance books and health insurance cards; and settlement of social insurance and health insurance benefits to the Provincial Social Insurance Agency, effective from July 1, 2013.

4. The Vietnam-Korea Food Processing Plant Project of the Vietnam-Korea Joint Venture Import-Export Company (VIVINA Company): A commitment to environmental protection is required.

A representative from Vivina Company stated: Although the joint venture with Hai An Seafood Import-Export Co., Ltd. was established on September 21, 2012, as of May 8, 2013, the company had still not received the investment documents and other documents related to product manufacturing. Specifically, the following applies:

The Vietnam-Korea Food Processing Plant project of Vivina Company was granted Investment Certificate No. 272202200080 by the Management Board of the Southeast Nghe An Economic Zone on August 7, 2012. Due to the lack of an Environmental Protection Commitment Statement in the project dossier, Article 3 of the Investment Certificate clearly states: “This Investment Certificate will expire if, within two months from the date of issuance, the investor has not submitted the Environmental Protection Commitment Statement certified by the competent authority.” Subsequently, Vivina Company prepared the Environmental Commitment Statement for the Vietnam-Korea Food Processing Plant project and submitted it to the Nghi Loc District People's Committee. The Nghi Loc District People's Committee then sought opinions from the Management Board of the Southeast Nghe An Economic Zone and the Nghe An Department of Natural Resources and Environment. However, this project is a joint venture with Hai An Seafood Trading and Import-Export Co., Ltd., and is therefore located on land belonging to the Hai An Seafood Processing Plant, owned by Hai An Seafood Trading and Import-Export Co., Ltd. Meanwhile, the Hai An Seafood Processing Plant project of Hai An Seafood Trading and Import-Export Co., Ltd. still has some unresolved environmental protection issues. Therefore, the Nghi Loc District People's Committee has not yet approved the Environmental Commitment for the Viet-Korean Food Production Plant Project of Vivina Company. On December 6, 2012, the Management Board of the Southeast Nghe An Economic Zone issued Document No. 653/KKT-KHĐT, agreeing to extend the validity of Investment Certificate No. 272202200080, issued on August 7, 2012, until March 15, 2013.

During that time, the Management Board of the Southeast Nghe An Economic Zone received a request from Hai An Seafood Trading and Import-Export Co., Ltd. to revoke the investment license of Viet Han Food Import-Export Co., Ltd. However, this request was illegal as it was unilaterally made by Hai An Seafood Trading and Import-Export Co., Ltd.

The Southeast Economic Zone Management Board responded as follows:Currently, Vivina Company's Investment Certificate No. 272202200080 has been extended until March 15, 2013. Vivina Company needs to coordinate with its joint venture partner, Hai An Seafood Trading and Import-Export Co., Ltd., to submit the Environmental Protection Commitment to the relevant authorities for assessment and approval.

Chau Lan (compiled)