Foreign direct investment (FDI) is one of the important resources for economic development in developing countries like Vietnam. However, after many years of attracting FDI at all costs, recently, some localities in Vietnam have begun to focus on selectively attracting this capital source. Ba Ria-Vung Tau is one of such localities.
Workers at Minh Tri Steel Structure Joint Stock Company in Ba Ria-Vung Tau province. Photo: Hoang Nhi - VNA
Don't attract investment at all costs
Since 2018, Ba Ria-Vung Tau province has only accepted high-quality FDI projects such as using clean, environmentally friendly technology, creating products with high added value...
Selective FDI attraction not only helps eliminate inappropriate projects that use outdated technology, consume a lot of fuel, and affect the environment, but more importantly, helps create a solid foundation for a strong breakthrough of Ba Ria-Vung Tau's industry, while contributing to the implementation of the province's green development and sustainable development goals.
As a result, FDI enterprises investing in the province are currently mainly focusing on high-tech, participating in global supply chains, and energy saving. According to statistics from the Department of Planning and Investment of Ba Ria-Vung Tau province, the province has currently attracted FDI projects from more than 30 countries and territories around the world.
Among these, there are many large corporations such as Hyosung Group (Korea), Austal Group (Australia), CJ Group (Korea), Marubeni Group (Japan), Samsung Group (Korea) or Vard Group (Norway).
In particular, the province has attracted a number of large-scale upstream projects with investment capital of over 1 billion USD, such as the Southern Petrochemical Complex (LSP) super project with a total investment of over 5.1 billion USD, or the Polypropylene Production Plant and Liquefied Petroleum Gas (LPG) Underground Storage with a total investment of 1.3 billion USD.
The Southern Petrochemical Complex Project is invested by Long Son Petrochemical Company Limited - a joint venture between Thailand's SCG Group and Vietnam National Oil and Gas Group - on an area of approximately 464 hectares and 194 hectares of water surface for the seaport. This is the first fully integrated petrochemical complex in Vietnam. It is expected to begin operations in early 2024.
Meanwhile, the project to build a Polypropylene factory of Hyosung Group has a designed capacity of 650,000 tons of Polypropylene/year, of which 300,000 tons will be supplied to the Vietnamese market with superior quality and competitive prices compared to existing imported products, contributing to improving the competitiveness of Vietnam's manufacturing industries.
The products of these projects are abundant sources of raw materials and fuel for downstream processing and manufacturing industrial projects, thereby creating a positive impact in attracting and promoting many projects to produce products in the supporting industry to invest in the province.
As for the underground LPG storage, this is the largest project in Southeast Asia and an important part of the Polypropylene factory project. This project is located at a depth of more than 100m to nearly 200m below sea level, with a capacity of 240,000 tons. The underground storage is almost completely automated with the most advanced technology, the outside is covered by a layer of hard granite. This underground storage is considered to be almost absolutely safe.
Improve the effectiveness of attracting foreign investment
Despite achieving encouraging results in attracting FDI capital, Ba Ria-Vung Tau province is still making efforts to further improve the efficiency of attracting foreign investment, with the goal of attracting at least 15 billion USD more FDI capital by 2025.
Ba Ria-Vung Tau does not attract FDI capital at all costs. Illustrative photo: VNA
In mid-October 2023, the People's Committee of Ba Ria-Vung Tau province issued Document No. 13768/UBND-VP directing departments, branches and localities to implement Directive No. 14 dated May 24, 2023 of the Prime Minister on a number of tasks and solutions to improve the efficiency of foreign investment in the new period in the province.
In the above document, the Provincial People's Committee requested relevant departments and branches, the Industrial Park Management Board; Provincial Police; Provincial Social Insurance; Customs Department; Tax Department and People's Committees of districts, towns and cities based on their functions and tasks to organize a review and synthesis of difficulties and problems in the process of implementing investment projects in the province, and advise the Provincial People's Committee to handle recommendations of FDI investors within the scope of management.
According to Mr. Nguyen Van Tho, Chairman of the People's Committee of Ba Ria-Vung Tau province, in the coming time, the province will focus on calling for investment in large-scale projects with modern technology, spreading effects, high added value, less labor-intensive, and environmentally friendly. For operating FDI enterprises, the province will encourage innovation in production lines and new generation technology to improve productivity, product quality, and reduce energy consumption when the Provincial Planning is approved in the spirit of developing large-scale economy towards modernization and sustainable industrialization.
The Chairman of the Provincial People's Committee also requested departments and branches to focus on attracting investment and supporting the implementation of priority projects on infrastructure of industrial parks and clusters; power source projects, petrochemical and gas projects... according to the list of provincial planning projects after being approved by competent authorities.
In addition, the Chairman of the Provincial People's Committee also requested relevant departments and branches to effectively implement policies to support businesses facing difficulties in exempting, reducing, and extending taxes, fees, and land rents to help businesses overcome financial difficulties and have more resources to invest in expanding production and business.
Along with that, the Chairman of the Provincial People's Committee also requested the team to support the province's investment projects to improve operational efficiency, to remove difficulties for investors, and promote disbursement of domestic and foreign investment capital.
To be ready to welcome large investment projects, along with the preparation of infrastructure for industrial parks and clusters, Ba Ria-Vung Tau is currently investing in developing connecting traffic systems, including the connection system to the Cai Mep-Thi Vai seaport area; connecting with tourism projects along the coastal route from Phu My town, Vung Tau city to Xuyen Moc district...; connecting routes to the key economic zones in the South such as Bien Hoa-Vung Tau expressway, Phuoc An bridge and preparing to invest in Ring Road 4. On the other hand, the province plans to upgrade and complete investment in national highways 51, 55, 56, provincial roads connecting to Dong Nai and Binh Thuan provinces; upgrading inland waterways.../.
Minh Phuong
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