A strong wave of investment into Nghe An

(Baonghean) - Up to now, Nghe An has implemented 533 investment projects with a total registered capital of 136,989.5 billion dong (including 507 domestic investment projects with a total registered capital of 131,870 billion dong and 26 foreign direct investment (FDI) projects with a total registered capital of 256 billion dong), many of which are large-scale and considered the crucial basis for the province’s economic development.

Nghe An has paid special attention to investment attraction, particularly from 2011 to 2015, and been active in outlining and implementing sector and field plans to assist investment promotion and expand external activities. As a result, the province has attracted a number of important projects being the prerequisite for economic development in the following years such as Constructing and Trading infrastructure of the integrated township and industrial park VSIP Nghe An; Constructing and trading infrastructure of area D - Nam Cam Industrial Park; Hoa Sen steel sheet plant; Nguyen Kim shopping center; Preserving and Developing high quality pharmaceutical sources; cement plants; projects of cow husbandry and high-tech dairy plants; Hitech BSE Vietnam factory manufacturing components, equipment, electronics and telecommunications, etc.

The provincial leaders and Vietnam National Coal - Mineral Industries Group are carrying field inspection in Quynh Lap 1 thermo - power plant project in Dong Hoi Industrial Park (Hoang Mai).

To offer favorable conditions to investors, Nghe An has planned and promoted investment in constructing infrastructure system in industrial parks (IPs), industrial clusters, focusing on developing Dong Nam Economic Zone. Currently, the boundary of Dong Nam Economic Zone has been expanded to include Hoang Mai IP, Dong Hoi IP and the whole area of the integrated township and industrial park VSIP project. Furthermore, many districts have implemented investment in constructing infrastructure of 32 industrial clusters with an area of 467 hectares, thereby promptly meeting investors’ demands for positions and infrastructure. Mr. Bui Minh Tan, Deputy Director General, VINACOMIN Power Holding Corporation - Vietnam National Coal - Mineral Industries Group said: “We are in charge of implementing Quynh Lap 1 thermo-power plant project and during implementation process; we have received caring and timely support from the provincial leaders for the project. The environment for attracting investment is so good that after a short period of time, with the active engagement of concerned parties, Vietnam National Coal - Mineral Industries Group is going to hold the ground breaking ceremony of the project on Oct 1, 2015. With this easy start, hopefully Vietnam National Coal - Mineral Industries Group will implement the project as scheduled”. Quynh Lap Power Center’s plan is approved by Ministry of Industry and Trade, having a capacity of 2,400 megawatt and comprising 2 stages. In the first stage, Vietnam National Coal - Mineral Industries Group builds Quynh Lap 1 thermo-power plant in Dong Hoi IP with an area of 179 hectares. In this crucial project, the localization of the equipment in thermo-power plant using coal with a unit capacity of 600 megawatt is conducted as per the government’s direction. Accordingly, EPC joint-venture complex coordinated by Doosan Korea and Vietnam Machinery Installation Corporation Lilama, Narime and domestic joint ventures designing and producing equipment for both units of Quynh Lap 1 thermo-power plant project with a capacity of 1,200 megawatt. According to the plan, the project of Quynh Lap 1 thermo-power plant will be completed and operate in 2020. Recently, POSCO Vietnam Holdings Corporation has visited Nghe An to study and register to conduct research on investment in the project of the second thermo-power plant in Quynh Lap.

Owing to the clear and renovated investment attraction policies, many big investors have come to invest in Nghe An. The Vissai Group has invested in a cluster of projects including: Song Lam cement JSC (officially received Do Luong cement plant project from Dec 26, 2014) and upgraded the capacity of the plant from 900,000 tons per year to 4 million tons per year; constructing cement grinding station and international port in Nghi Thiet (Nghi Loc), etc. Since the project commencement, the investors have made efforts to focus resources on accelerating work and strictly following the schedule. Song Lam cement plant project shall be finished within 18 months, cement grinding station project (capacity of 4 million tons per year) within 15 months and specialized international seaport within 18 months. Being determined to create new and strong development in cement production in Nghe An, The Vissai Group has decided to increase the capacity of Song Lam cement plant from 900.000 tons/year to 4 million tons/year. Site clearance to upgrade and expand the construction area of Song Lam cement plan has been fundamentally completed. The issues of planning to expand limestone quarry’s area, stone-clay quarry’s area and transporting routes from quarries to plants have been paid much attention by Command of Military region 4 and provincial People’s Committee. Mr. Dinh Quoc Quyen, Director General of Song Lam cement plant said: “We are determined to finish Song Lam cement plant project as scheduled and are accelerating work at the construction sites”. 2 concrete batching plants providing 2,000m3 per day for construction items have been installed and the power system serving the project has been finished. Song Lam cement plant project when finished shall offer jobs with stable incomes for more than 2,000 employees and annually contribute 350 to 400 billion dong to the province’s budget. Along with this project, The Vissai Group has also received PetroVietnam 12/9 cement JSC in Anh Son to continue investing to finish the project (Song Lam 2 cement plant).

In 2015, other projects have been launched and accelerated in Nghe An such as: raw water plant supplying for clean water plants in Vinh city belonging to Song Lam water plant, with a capacity of 200,000 m3/24 hours, a land use area of 0.3 hectare and a total investment capital of 496 billion dong; project to invest in constructing terminal 5 and 6 in Cua Lo Port conducted by Tuan Loc investment and construction JSC, with a land use area of 23.5 hectares, a total investment capital of 650 billion dong; project of tapioca starch processing plant in Hoa Son, Anh Son conducted by Hoa Son agricultural processing JSC, with a land use area of 21.8 hectares, a total investment capital of 224 billion dong, contructing Hoa Sen 2 steel sheet plant in Quynh Lap (Hoang Mai), etc.

Despite gaining positive results in promoting and attracting investment, in reality, those results have not fully exploited the potentials and advantages of Nghe An. Therefore, in the near future Nghe An shall continue to focus on attracting investment, increasing provincial competitiveness index (PCI); strongly improving investment and trading environment, upgrading the quality of investment promotion, innovating the process of preparation, receipt and performance of projects. Meanwhile, Nghe An shall keep implementing favorable policies currently applied as regulated by the state, allowing businesses to enjoy the best investment incentives as specified in laws and rules; studying, issuing and implementing provincial favorable mechanism and policies, investment stimulation in accordance with laws, rules and practice; successfully implementing the province’s proposal of attracting investment until 2020, creating the motivation to successfully implement Resolution No. 26-NQ/TW issued by the Politburo on directions and tasks to develop Nghe An towards 2020.

Hoang Vinh