What can we learn from this "2 best" investment project?

On the first day of August 2023, the People's Committee of Nghe An province held a ceremony to award the Investment Registration Certificate for a foreign direct investment (FDI) project by Innovation Precision Vietnam Co., Ltd., a subsidiary of Shandong Innovation Metal Technology Group (China), with a total investment of 165 million USD in Nghe An, located in the VSIP Nghe An Industrial Park, within the Southeast Economic Zone.

This project is considered to have two outstanding features: Firstly, it had the fastest investment procedure completion time; from survey to issuance of the Investment Registration Certificate, it took only about 2 months; and secondly, the time from application submission to issuance of the Investment Registration Certificate was only 5 working days.

Chairman of the Provincial People's Committee Nguyen Duc Trung presents the Investment Registration Certificate to Shandong Innovation Metal Technology Group. Photo: Pham Bang.

The special assistant to the Chairman of Shandong Innovation Metal Technology Group expressed surprise, stating, "In the 20 years since its establishment, no project of the group has had such a fast processing time."

Secondly, this project boasts a very high investment per hectare, at VND 328.74 billion, currently the highest for FDI projects in the province. Besides these two outstanding features, Nghe An is the first province that Shandong Innovation Metal Technology Group has chosen to expand its investment in the Vietnamese market.

The aforementioned project specializes in the production of aluminum alloys for the consumer electronics and green energy industries; the production of pre-cast and finished aluminum alloy products for supporting the electronics manufacturing industry; metal forging, hammering, pressing, and rolling; and the production of advanced machined aluminum parts for supporting the electronics manufacturing industry, with a capacity of 100,000 tons per year. Construction of the factory will begin in August 2023, and the project is expected to officially commence operations in October 2024, employing 1,500 workers.

VSIP Nghe An Industrial Park - where Shandong Innovation Metal Technology Group has invested in a project. Photo: Thanh Cuong

This event once again demonstrates the positive results in attracting investment that the Party Committee, Government, and people of Nghe An have jointly achieved. It is a testament to the combined strength of Nghe An province's leadership in innovating and improving the investment environment, accompanying and creating the most favorable conditions for investors from the initial survey phase to the project's operation. It is also a testament to the consensus of local people in giving up land and clearing the site for industrial development, with the expectation of creating more job opportunities and income for their children and local workers.

Even more encouragingly, in the challenging circumstances following the Covid-19 pandemic, Nghe An is attracting many foreign businesses who are surveying and choosing it as a reliable investment location. In 2022, Nghe An ranked 10th out of 63 provinces and cities nationwide in attracting foreign investment. By August 2023, Nghe An ranked 8th out of 63 provinces and cities nationwide in attracting FDI, with capital attracted exceeding 890 million USD (specifically in industrial parks and economic zones, with more than 70 investors from 14 countries and territories).

In numerous conferences and forums, provincial leaders, departments, and local authorities in Nghe An have consistently pledged to actively support businesses and investors to contribute to socio-economic development, increase job opportunities, raise people's incomes, and boost budget revenue. The investment attraction results achieved today are the culmination of years of preparation. This includes planning; the development of preferential policies over different periods; and the involvement of the entire political system, mobilizing public support and creating a clean land base for the development of industrial parks and economic zones. As a result, Nghe An now boasts industrial park infrastructure investors such as VSIP, WHA, and Hoang Thinh Dat, along with eight other industrial parks in various districts, cities, and towns, all with clean land, built roads, electricity, water, and wastewater treatment systems, ready to welcome investors.

Spatial development orientation map of the Southeast Nghe An Economic Zone until 2040. Photo: TD

Chairman of the Provincial People's Committee Nguyen Duc Trung once emphasized: "Nghe An will focus on implementing five tasks, known as the 'five readinesses.' Firstly, readiness in terms of investment land; secondly, readiness in terms of essential infrastructure; thirdly, readiness in terms of human resources; fourthly, readiness in innovation, reform, and substantial improvement of the investment and business environment; and fifthly, readiness in providing support." Along with these five readinesses, Nghe An province is finalizing plans for the overall adjustment of the general planning for the Southeast Economic Zone until 2040, and developing plans for the development of industrial parks and integrated economic zones within the provincial planning for the period 2021-2030, with a vision to 2050, including expanding the Southeast Economic Zone to approximately 80,000 hectares…

In particular, in July 2023, the Politburo issued Resolution 39 on building and developing Nghe An until 2030, with a vision to 2045. This is one of the important foundations for Nghe An to continue implementing solutions to accelerate socio-economic development, including promoting investment attraction, improving the efficiency of resource utilization for development, and creating a solid foundation for the coming years.

During the period 2021-2025, Nghe An province aims to attract 100-120 investment projects with a total registered capital of approximately 75,000-90,000 billion VND, including about 2.26 billion USD in foreign investment; creating jobs for approximately 80,000-100,000 workers by 2025. It is projected that budget revenue from the Southeast Economic Zone and industrial parks will account for approximately 20-25% of the province's total budget revenue by 2025.

Source: https://baonghean.vn/thay-gi-tu-du-an-dau-tu-2-nhat-post274351.html