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Foreign investment rises in central region
The importance of foreign investment was becoming more and more evident in the central key economic region, said Deputy Minister of Planning and Investment Dang Huy Dong at a conference in the central province of Quang Nam on Saturday.
The conference was held to boost investment in the region, which includes Thua Thien-Hue, Quang Nam, Quang Ngai, Binh Dinh Provinces and Da Nang City.
Dong said that as of May, the country had about 11,500 active foreign direct investment (FDI) projects, worth US$185 billion.
He said that in the central region, there were about 400 active FDI projects with a combined capital of about $15 billion. Up to 75 per cent of the country's projects, representing 61 per cent in terms of capital, were located in the central and Tay Nguyen (Central Highlands) regions, which now contribute over 5 per cent of the gross domestic product (GDP) in the area and have created 60,000 local jobs.
"The dramatic increase in FDI from 2007, with some projects worth billions of dollars, has arisen in the latest wave of investment in the region," Dong said.
In the last three years alone, total FDI in the region was nearly $11.3 billion, quadruple the total invested in the two previous decades.
Dong said that with rising investment, the area had seen significant GDP growth over the last few years. In 2008 alone, GDP grew 11 per cent, higher than the national average.
Deputy Prime Minister Hoang Trung Hai said the region was attractive to foreign investors.
"The region has particular advantages. It is strategically located and has rich natural resources, seaport access and sites of world cultural heritage," Hai said.
"It is a dynamic area and will play a key role in driving socio-economic development in the central and highlands regions up to 2020," he said.
The Government is aiming to develop the region as an Asia-Pacific transshipment and processing trade centre with major sectors that will include marine industries, tourism and services. There will be a number of economic and industrial zones, logistics systems and international warehouses.
"Undoubtedly, with the appropriate investment, development in the region will accelerate and catch up with other parts of the country," Hai said. "I hope both foreign and domestic businesses come and invest in this promising area."
However, Dong said disbursed FDI capital in the region reached just 7 per cent.
Compared with northern parts, the central key economic area accounted for just 14.1 per cent of projects and 46.7 per cent in terms of registered capital.
It fared even worse against the southern economic region, where it accounted for 5.6 per cent and 17.3 per cent, respectively.
Dong attributed the situation to slower socio-economic growth in the central parts, poor infrastructure, a lack of skilled workers and limited links with other provinces and cities.
The lack of an overall development strategy and slow ground clearance were also hindering investments, he said.
The official said to lure more investment, the province should improve its infrastructure and make development of its marine economy a top priority.
It should complete seaport and transport projects, boost tourism development and step up construction of industrial and economic zones, he said.
Doan Hong Quang, a senior World Bank economist in Viet Nam, said the region needed to select the best development projects and mobilise the most appropriate sources of investment capital.
At the conference, participants asked the Deputy Prime Minister to improve the region's investment environment by tackling shortcomings related to power supply, legislation, environmental protection, communications and exchange of investment information.
Representatives from Canada, Singapore and Japan expressed concerns about the quality of local workers, and suggested that more education and vocational training courses be set up.
Also at the meeting, investment certificates were granted to Vinalines, ALT Tourism Development and C&N Vina companies.
Vinalines is developing the VND6 trillion ($324.3 million) Nhon Hoi port and a logistics centre in Binh Dinh, while ALT is building a VND2.5 trillion ($135.1 million) tourism complex, also in Binh Dinh.
C&N Vina is investing in infrastructure at Phu Xuan industrial zone in Quang Nam worth VND1.2 trillion ($64.9 million) in its first phase.
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