Identify the difficulty
The “aftermath” of the prolonged COVID-19 pandemic has negatively impacted foreign direct investment (FDI) flows. Not only is there a lack of capital flowing into Vietnam (including Quang Nam), but the performance of FDI licenses in the locality that are still valid is also not as expected. In 2023, there were 4 more FDI projects licensed with a meager investment capital of 58.58 million USD, but up to 5 projects had to leave the market.
According to a survey by the Vietnam Federation of Commerce and Industry (VCCI) through the PCI 2023 index, the level of optimism about the business prospects of local FDI enterprises has decreased. The rate of enterprises planning to expand production and business in the next two years is only about 26%.
The optimism level of domestic market-oriented enterprises decreased slightly to 23.6% and the optimism level of export enterprises decreased sharply to 28.7%.
This figure reflects the more cautious sentiment of FDI enterprises in the context of the current unpredictable global economy. The reason may come from the context of many fluctuations in the world combined with the decline in market attraction...
According to the survey, the difficulties FDI enterprises encounter when operating locally are always related to policies, regulations, and administrative procedures.
US businesses often face difficulties related to policies and regulations (22% of businesses) and administrative procedures (16%).
Japanese enterprises face difficulties in carrying out tax refund and tax settlement procedures (42% and 58%).
Chinese businesses said they rarely face difficulties with policies and regulations (only 9% and 5% of businesses assessed this). The biggest difficulties for Chinese businesses are market fluctuations and difficulty finding customers (38% and 44%).
Attracting FDI or feeling of competitiveness does not come from the lack of investment environment or many obstacles from implementing policies, mechanisms, and administrative procedures of local authorities. The decline in production and business comes from the market.
The story of Heineken Quang Nam Brewery (Dien Nam - Dien Ngoc Industrial Park) temporarily suspending operations or Woochang Vietnam (100% Korean capital) in Trang Nhat 1 Industrial Park facing financial difficulties due to fire are two examples of private business stories.
Continue to attract investment
According to statistics from the Department of Finance, currently 37% of FDI enterprises report profits. Many enterprises have increased investment capital and recruited more workers.
Mr. Steven Wolstenholme - Chairman and General Director of Nam Hoi An Development Company Limited - Hoiana Resort & Golf (project developer) said that the project will continue to expand with an investment of up to 1 billion USD, recruiting 2,500 more workers in the next 2 years.
Hyosung Quang Nam General Director Par Chan said that local support has helped the company overcome difficulties, contribute to the budget and recruit local workers.
As of mid-November 2024, there were 201 valid FDI projects, creating jobs for more than 62,000 local workers. The determination to change and improve the investment environment has become a plus point of Quang Nam.
Mr. Bodo Th. Boelzle - CEO of Amann Group said the decision to locate the factory in Quang Nam was because this is a place where investment administrative procedures are handled professionally. Many FDI investors said the investment environment is open and friendly, the infrastructure is being invested heavily and is increasingly being improved.
Policies towards transparency in investment procedures and equality with foreign investors are the core factors that increase the trust and decision of many Korean investors to choose Quang Nam for investment.
In recent meetings, FDI enterprises expect the most from improving infrastructure, work permits; from wastewater treatment infrastructure in industrial parks and clusters, site clearance, worker housing, resettlement...
Enterprises expect close cooperation, quick and simplified administrative procedures, project approval procedures, environmental impact assessment, investment licensing... to speed up investment progress.
Chairman of the Provincial People's Committee Le Van Dung pledged to continue to accompany, remove difficulties, build the best investment environment, and create confidence for the FDI business community to develop. The Chairman of the Provincial People's Committee requested departments, branches, and localities within their authority to promptly and promptly resolve recommendations and proposals from businesses, create an open and transparent investment environment, and facilitate businesses to operate in each specific investment project.
Source: https://baoquangnam.vn/diem-cong-cua-quang-nam-va-niem-tin-tu-doanh-nghiep-fdi-3144558.html
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