Success from “5 ready”
At the end of 2023, Head of the Southeast Economic Zone Management Board Nguyen Tien Tri announced good news: Nghe An Provincial People's Committee has just issued an Investment Registration Certificate for a foreign direct investment (FDI) project with a capital of 120 million USD.
This is a project invested by Radiant Opto – Electronics Corporation (Taiwan) to build Radiant Opto – Electronics Vietnam Nghe An Factory in VSIP Nghe An Industrial Park.
The project has a design capacity of electronic components products, including backlight modules (BLU), light guide plates (LGP), brightness enhancing films (BEF), and plastic frame molding (M/F forming) in phase 1 of 35 million products/year, equivalent to 2,100 tons of products/year; phase 2 increases by 10 million products/year, equivalent to 600 tons of products/year.
The investor builds factory and warehouse rental services with an area of about 45,000m2; accommodation rental facilities for workers and experts working in VSIP Nghe An Industrial Park, with an area of over 14,000 square meters, along with maintenance and repair services for products manufactured by the investor. This is the 17th FDI project that Nghe An province has attracted in 2023.
“With the issuance of the Investment Business Registration Certificate for the investor’s project with a capital of 120 million USD in the last days of this year, Nghe An has attracted 1.58 billion USD of FDI capital in 2023. As of the end of December 2023, Nghe An ranked 9th out of 63 provinces and cities nationwide and in two consecutive years 2022 and 2023 ranked in the top 10 nationwide in attracting FDI investment” – Mr. Le Tien Tri said.
A notable success is that among FDI investors in Nghe An, there are many large enterprises with international brands such as Foxconn, Goertek, Everwin, JuTeng, Luxshare ICT... These are strong brands, with great prestige and effective production and business activities, environmentally friendly, strictly complying with international law and the laws of the host country.
According to the Management Board of the Southeast Nghe An Economic Zone, in the coming years, the province's FDI attraction will continue to increase, as FDI projects form a chain of links and supply chains, one after another, entering Nghe An.
Attracting investment is a major policy and an important political task, which is regularly reminded, urged, and thoroughly implemented by the provincial leaders, becoming the common spirit of the cadres, civil servants, and public employees of the province. Accordingly, Nghe An has a "5 readiness" formula for investors, including: Ready land; ready infrastructure; ready human resources; ready policies, mechanisms, and administrative procedures; ready to accompany and support.
In terms of land potential, Nghe An is the largest area in the country, the 4th largest population in the country (after Ho Chi Minh City, Hanoi, Thanh Hoa), with a labor force of about 1.6 million people, each year there are 40 - 50 thousand more people entering the working age, the rate of trained labor is increasing. Nghe An is a locality with transportation advantages, with airports, seaports, roads, and increasingly upgraded and improved transportation and logistics infrastructure systems.
Regarding policy mechanisms, Nghe An regularly focuses on administrative reform, shortening the time to complete procedures, creating maximum convenience for investors. Nghe An has established the Southeast Economic Zone, creating a more favorable mechanism for investors in handling administrative procedures.
Nghe An's success is attracting many industrial park infrastructure investors with good capacity and experience in effective management and investment attraction such as VSIP, WHA, Hoang Thinh Dat... These investors build large-scale, modern industrial parks with large land funds, which are favorable for investors to develop scale and expand connections.
Vision towards sustainable development
Nghe An’s success is something that other localities admire and wish to achieve. Because only success in attracting investment, especially FDI capital, can bring sustainable development and prosperity to the locality. Nghe An has gone one step ahead in attracting investors to build industrial park infrastructure to prepare nests for eagles.
In September 2015, attending the groundbreaking ceremony of the VSIP Nghe An industrial, urban and service complex project, Prime Minister Nguyen Tan Dung affirmed: “The success of this project not only contributes to the socio-economic development of Nghe An, the region, and the whole country, bringing practical benefits to both Vietnam and Singapore, but more broadly, it contributes to strengthening the strategic partnership and the agreement to connect the two economies of Vietnam and Singapore.”
In Nghe An, the 7th VSIP project is built on an area of 1,475 hectares, of which phase 1 is implemented on an area of 750 hectares, with a total investment of nearly 1,700 billion VND. With a strategic location right in the middle of the country's new production center. With abundant labor resources and competitive costs, VSIP Nghe An will be an ideal destination for all investors in the manufacturing sector, creating jobs for thousands of local workers.
Along with VSIP, Nghe An continues to attract WHA Hemaraj Nghe An Joint Stock Company to invest in the construction of phase 1 of the WHA Hemaraj Nghe An Industrial Park Project. The project is deployed on an area of 3,200 hectares in Nghi Loc and Dien Chau districts, under the planning of the Southeast Economic Zone. The project has a total investment of about 22,000 billion VND, equivalent to 1 billion USD. The project implementation progress began in 2017 and will be completed in 2030.
Up to now, the above projects have been practically effective, forming industrial parks with complete production and supply chains, attracting many projects to invest in Nghe An.
Along with FDI capital, investors also bring to Nghe An advanced technologies, modern production lines, new business management models and thinking, creating opportunities for transfer to local businesses and workers. Workers no longer have to go abroad to find work, and have the opportunity to find jobs with salaries commensurate with their training level. "Recently, many Chinese enterprises have invested in Nghe An, they need workers who know Chinese. If workers have more experience and suitable qualifications, they will be paid a salary of 15-20 million VND/month" - Vice President of the Trade Union of the Southeast Economic Zone of Nghe An Tran Thi Nguyet said.
The fruit of perseverance
According to Chairman of Nghe An Provincial People's Committee Nguyen Duc Trung, in many years ago, Nghe An was not an attractive destination for foreign investors. However, with the province's efforts and perseverance, in recent years, Nghe An has made positive changes in attracting FDI.
Up to now, Nghe An province has attracted 133 FDI projects from 14 countries/territories with a total registered investment capital of more than 4 billion USD. In the 5-year period from 2019 to present, Nghe An's FDI capital has reached about 3.4 billion USD; accounting for 85% of the total registered FDI capital to date.
In 2022, it will reach approximately 1 billion USD, in 2023 it will reach nearly 1.6 billion USD, thereby for 2 consecutive years Nghe An is in the list of 10 localities attracting the highest FDI capital in the country.
In particular, Nghe An has successfully attracted many large corporations in the world to participate in the supply chain of electronic technology and green energy production such as: Luxshare - ICT, Goertek, Everwin, JuTeng, Foxconn, Runergy, Shangdong, Sunny..., initially forming key industries of the province such as: technology, electronics, energy, steel, auto parts manufacturing,... This is considered a remarkable result after 27 years since Nghe An attracted the first FDI project.
Attracting FDI capital is an important resource, contributing to promoting economic restructuring, developing economic sectors, and promoting import and export. This is a resource for localities to have conditions to achieve development goals - Chairman of Nghe An Provincial People's Committee Nguyen Duc Trung .
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