Phong $594.4 million, Hanoi $513.1 million and Tay Ninh $481.4 million.

Among 52 countries and territories investing in Vietnam, ritories Hong Kong (China) was the biggest investor making up 29.7 per cent of the total capital. Then came Japan (16.2 per cent) and Singapore (14.5 per cent). According to the GSO, the FDI disbursement simultaneously reached about $ $10.1 billion, rising by 1 per cent against the same period last year. vir.com.vn As of November 20, Vietnam attracted approximately $12.7 billion in Foreign Direct Investment (FDI), equivalent to 83.8 per cent of the same period last year, according to the General Statistics Office (GSO). The total figure includes $9.9 billion in newly registered capital from 919 projects and $2.8 billion in increased capital from 324 projects. The processing and manufacturing industry attracted the largest registered capital of $6.2 billion, followed by the energy industry ($2.5 billion), and the construction sector ($1.1 billion). In 11 months, 48 cities and provinces licensed new FDI projects with Hai Duong topping the list receiving $2.5 billion, or 25.2 per cent of the countrys total capital value. Hai Duong was followed by HCM City with US$1.9 billion, Ba Ria-Vung Tau $880.8 million, Hai Restructuring Must Sufficiently Aggressive Be

Preventing bad debts economic groups a necessity

of

FDI hits $12.7 billion in 11 months

Dr Hoang Tran Hau, Deputy Director of the Academy of Finance SOEs are losing their effectiveness. The financial health of many SOEs is not guaranteed for safe operation. The rate of returns on capital is limited. Particularly, many are facing risk of collapse. Therefore, it is imperative to prevent indiscriminate credit which results in bad debts for economic groups. And, one urgent method is to elimina eliminate their subsidiary banks, finance companies and venture funds and divest investments in financial institutions. The Government needs to review, reconsider and reassess multi-business business State State-owned economic groups. It is vital to separate the ownership right of the Board of Directors and governing power of the Board of Executives, as well as enhance supervision effectiveness by improving management and supervision rights of SOEs of concerned ministries and departments. The plan aims to ration State monopoly i business and in production business, thus distorting the market, causing huge damage for consumers, restraining economic growth and competitiveness. Vital to comply with market laws Dr Nguyen Minh Phong, Hanoi Socioeconomic Research Institute I think restr restructuring in general and SOE restructuring in particular are in the process of changing the

With aggressive moves towards corporate restructuring, the Government is demonstrating steely determination to put a stop to the alarming reality of State State-owned enterprises (SOEs), State State-owned economic groups and corporations in particular. A number of optimal restructuring methods and roadmaps were put forth by economists at a conference on SOE restructuring hosted by the Acade of Finance in Academy Hanoi on November 15, 2011.

entire system. For a successful restructuring, it is crucial to distinguish the ambiguous goal of profit and non-profit. If they do for profit, they will compete to the last on the market. But, when they operate for a non-profit purpose, the State must take care of them. The State does not cover risks for enterprises nor entail risks to them by issuing administrative decisions. The Government must comply with market laws, reduce public investment, and stop abuse of State ownership, especially the limits on the degree of privatisation. SOE restructuring must based on the principle of respect full utilisation of market rules must ensure requirements renovation, integration sustainable development. Restructuring must sufficiently aggressive be and and of and be

degree of market competitiveness and surveillance. Accordingly, we must carry out equitisation as a revolution, although this is not a new issue. We will focus on large entities, fundamentally reshuffle governance and create transparency in oversight. Unadvisable to allow massive private sector involvement in social services Mr Bui Ngoc Son, Institute of World Economics and Politics (IWEP) We need to draw experience from Argentina, which massively opened up social services like health, power and water supply to the private sector and then lost the power of controlling prices. This caused social unrest. The State should only reshuffle fields that the private sector cannot or does not want to do, such as national security and defence, large investment in infrastructure and public utilities. The primary role of the State is to support the society to enrich and it will collect taxes. When it grants power to the private sector in such fields as health and electricity, it needs to have a specific and careful roadmap allowing it to maintain some price control once the private sector pushes them up. SOE restructuring does not mean overvaluing the private economic sector Prof Nguyen Dinh Khang, Former Director of the Institute of Political Economy - The National Academy of Public Administration It is not true that economic restructuring means letting private

Dr Vo Tri Thanh, Deputy Director of Central Institute for Economic Management (CIEM) The doi moi (renovation) process has been in place over the last 20 years, but it remains flawed because it is influenced too much by the economic interests of large groups. Thus, further oversight of the Government is needed for prospective success. Until now, we have not worked out two age-old problems of SOEs: One is representative and conflict of interest; and other is ethical risk that may lead to risk-taking and lack of responsibility. To put an end to these problems, it is crucial to increase the

sector do everything apart from the most difficult tasks reserved for the State. The State sector still plays the role in the economy and it can engage in highly profitable business segments. Powerful capitalist economies like the United States, the European Union and Japan are also falling into very bad economic crises. In those economies, means of production and social wealth are in the hands of tycoons and the people are staging demonstrations on the streets. There are different models in other countries and the question is which model we choose, taking the best advice to strengthen our own force. The experience from the handover of SOEs to the private sector leading to political collapse and social unrest in the former Soviet Union and Eastern European nations remains clear. For that reason, the State still has to take command power over the economy, and its real power is exercised through SOEs. vccinews.com Vietnam to be among top 50 economies by 2050: HSBC Will be among the top 50 economies within the next few decades as many other emerging markets are set to take the lead in the global economy. Vietnam, like many of its rapidly growing neighbors, will see strong economic expansion during the next 40 years, with annual GDP growth expected to top 5 per cent, the Business Insider cited HSBC as saying. The bank predicted the size

of the economy will expand to $451 billion by 2050.

boost sustainable development.

socio-economic socio

Prime Minister Nguye Tan Nguyen Dung made this statement during his two-day working visit to the central day province of Binh Dinh from January 31-February 1. February PM Dung worked with key provincial leaders on ways to implement 2012 socio socio-economic tasks and iron out snags for businesses to promote sustainable development. Chairman of the Binh Dinh provincial Peoples Committee Le Huu Loc said the province made great strides in economic growth, healthcare, culture and social security in 2011. Its GDP rose 10.3 percent, the number of poor households dropped to 14.31 percent seholds and 24,000 new jobs were created. In 2012, Binh Dinh aims to maintain a GDP growth rate of 11 percent, generate 25,000 new jobs, further train 40 percent of its workers and reduce the number of poor households by two perce compared percent to the previous year. It also aims to have 95.6 percent of its medical centres staffed with qualified doctors and increase forest coverage to 46.7 percent. This year, the province is determined to boost production and increase the productivity quality and productivity, efficiency of the local economy and give priority to curbing inflation, stabilizing the macroeconomy and ensuring social welfare, national defense and security, Mr Loc added.

In his speech, the PM praised the great efforts the Party, administration and people of Binh tration Dinh made in the last year to obtain good results in all fields, especially agricultural production, which achieved relatively high growth of 4.5 percent. However, Mr Dung pointed out weaknesses that need to be resolved such as the high percentage of poor households, small economic scale, limited investment and ineffective administrative reforms.

According to the Business Insider, HSBC ranked Vietnam at 41, one place higher than Singapore. The bank expects China to surpass the US as the world's biggest economy by 2050, with India following right behind at number 3. HSBC said of the top 30 economies by GDP, 19 will be countries currently described as emerging. Indonesia, Malaysia and Thailand have been ranked 16th, 20th and 22nd, respectively. HSBC said as their education and policy systems develop, these economies will make substantial strides up the global economic ladder. vccinews.com

PM Dung asked provincial leaders to accept more responsibility and persist with implementing Government Resolution 11, remove difficulties facing agricultural production and seafood sectors, and support business operations. The province needs to come up with solutions to control traffic and reduce the number of accidents, enhance administrative reform, and reduce poverty, in ad addition to adjusting socio socio-economic planning, supporting essential infrastructure projects, and attracting more investment. During his visit, PM Dung, along with former Party General Secretary Le Kha Phieu and their

Binh Dinh Urged to Boost Socio-Economic Development Binh Dinh province needs to tap its internal strength and take full advantage of sea ports, airports, food processing, forestry and tourism to

accompanying Government delegation visited Regiment 940 and division 372 stationed in the province and offered incense at the Quang Trung Museum in Tay Son district. vccinews.com Right Place Investment Projects to Locate

Binh Dinh has a tropical monsoon climate with average temperature of 270C, average humidity at 80 percent, 2000mm rainfall and more than 2000 sunny hours per annum, making it very favourable favour for developing agriculture, industry and tourism. Binh Dinh has actively upheld its internal strengths and attracted external resources to speed up economic development and improve living standards. The philosophy of Binh Dinh Province in calling for investment and cooperation is to be a step ahead in preparing socio socioeconomic infrastructure and reforming administrative procedures. ming The Investment Promotion Centre of Binh Dinh Province (IPC Binh Dinh) is proud to introduce Binh Dinh as an attractive des destination for investment and cooperation. Strategic location synchronous infrastructure and

seaport and airport. It takes only 1 hour to fly from Binh Dinh to Ho Chi Minh City and 2 hours from Binh Dinh to Ha Noi. h Power and water supply, post and telecommunications services, and financial and banking services are all available, while education and training and healthcare facilities meet the demand of people and enterprises. Tourist amenities recreational facilities have constructed and upgraded. and been

Abundant resources and stable security In addition to its 134km coastline, beautiful beaches and landscapes, and marine resources, Binh Dinh has a variety of mineral resources including granite, ilmenite, sand, kaolin, clay, mineral springs and gold. Binh Dinh is well well-known as a land of martial arts a land of rich cultural tradition with many historical and cultural relics closely connected to the national hero King Quang Trung-Nguyen Hue, the Tay Nguyen Son Uprising and other famous cultural figures. Binh Dinh is the home of Tuong (classical traditional theatre), a lot of traditional craft villages, unique specialty foods, and a series of annual festivals. With a population of over 1.5 million, half of whom are of working age and with a tradition of diligence and creativity, Binh Dinh can supply an abundant labour force.

Binh Dinh is a coastal province of South Central Vietnam, bordered by Quang Ngai Province to the North, by Phu Yen Province to the South, by Gia Lai Province to the West, and by the East Sea to the East; it is 1,065km from the capital Hanoi, 686km from Ho Chi Minh City, 300km from Da Nang City and 300km from Bo Y International Border Gate (in Kon Tum Province) to Laos. Binh Dinh has a natural area of 6,025km2, a population of 1.6 million. The province has one city named Quy Nhon and 10 districts, including 3 mountainous districts. Quy Nhon City is a first-grade city with an area of 284.28km2 and a population of more than 260,000.

Binh Dinh one of five provinces in the key economic region of Central Vietnam - lies in the heart of Vietnam's North - South axis by road, railway and by airway. T The province is the most convenient gateway to the sea from the Central Highlands, Southern Laos, Northeastern Cambodia and Thailand (by Quy Nhon international seaport and National Road 19). This gives the province a strong advantage for promoting regional and international communication and trade relations. Binh Dinh has a synchronous infrastructure system including road and rail networks, international

Binh Dinhs economy has been vigorously developing in recent years with an average GDP growth rate of 12 percent. At the same time, political security and social order have been stabilized, as they are vital for promoting co-operation and attracting investors and tourists. The major economic sectors in the province are wood processing, agricultural and forestry processing industries and fisheries. Binh Dinhs wood processing industry makes it a major exporter of furniture. Ambitious planning and openminded policies Binh Dinh is developing the 12,000 hectare Nhon Hoi Economic Zone adjacent to Quy Nhon City and is calling for investment from domestic and foreign investors. The province is striving to turn its potential into practical resources for provincial socio-economic development. Established in June 2005, Nhon Hoi Economic Zone is being developed into a general economic zone comprising of a non-tariff zone, industrial zone, seaport service zone, tourist areas and new urban areas, all operated under a special incentive mechanism. Nhon Hoi Economic Zone is a driving force for socioeconomic development in Binh Dinh province and the entire Central region. It heralds tremendous business and investment opportunities. Coming to this economic zone, investors can make large investments in core and hi-tech industries such as

deepwater seaport construction, ship building and repairing, petrochemicals and oil refinery, trochemicals electric or electronics product manufacturing and assembly, electricity production, tourism development, marine services, finance, banking, post and telecommunications. At the same time, investors can choose to locate their i investment projects in the tariff zone, non non-tariff zone or export processing zone. Along with a positive cooperative attitude, Binh Dinh also offers some open open-minded and generous incentive policies, with practical assistance provided with the understanding that the success of investors is success for the province itself. The dynamic development of the enterprise community in Binh Dinh clearly reflects the transparent and favourable business climate - a gentle land for investors. vccinews.com Foreign Investment Promotion Needs to Be More Creative

Ministry of Planning and Investment, at the recent foreign investment conference for the southern region held by FIA and the Ho Chi Minh City Investment and Trade Promotion Centre (ITPC). Many provinces and cities lack good plans and creativity to attract investment, he added. He stressed that, with policies to actively promote potentials and advantages and create open an investment environment, Vietnam has received a number of foreign investment waves in the past years and this importantly contributes to national onal socioeconomic development. In general, foreign projects bring in new investment methods and help motivate domestic investment sources. Especially in 2011, foreign direct investment (FDI) reached US$15 billion. As many as 57 projects are worth over US$500 million. Disbursement value approximated US$10 billion. Although disbursement value declined over 2010, most investment projects had better quality. This impressive figure was partly contributed by innovative investment promotion methods. Many localities were very successful in their investment promotions. Dong Nai province was an example. Its investment promotion conference ent attracted more than 120 companies from Japan and 30 Japanese companies operating in Vietnam. Mr Hoang said an investment process now consists of three steps: promotion, licensing and deployment. Nonetheless, the stage

This remark comes from Mr Do Nhat Hoang, Director of Foreign Investment Agency (FIA) under the

of investment promotion in many localities remains spontaneous and uncreative. As regards licensing, since investment decentralisation is in force, localities are very active in licensing investment projects in a very quick manner although there are certain limitations. In general, this activity is very good. Concerning project management, despite efforts, most localities do not obtain satisfactory results. This limitation is partly attributed to the reporting from companies, the mechanism of State policies and the inadequacy of inspecting and supervising personnel. He recommended a consistent guideline from central to local levels in investment promotion, licensing and implementation to enhance effectiveness in the coming time. Specifically, localities need to be more innovative in investment promotion. To support localities, at present, the Foreign Investment Agency is collecting ideas for the supplementation to the Decree No. 108. Basing on the comments collected, the Ministry of Planning and Investment will submit proposals for amendments to the Decree 108 which covers the change in investment ownerships of foreign companies. Besides, the ministry is ready to support localities with information and stand up to connect provinces and cities to boost up the efficiency of investment promotion. In 2012, it will review all foreign investment projects in all provinces and cities to eradicate ineffective projects. Besides, in the list of

projects calling for foreign investment from 2011 to 2015, the southern region will focus on developing region region-linked trade and tourism projects, tourism development projects, water supply projects, wastewater treatment projects and infrastructure projects for coastal economic zones. Representatives of Departments of Planning and Investment of southern provinces and cities also shared experience in foreign investment attraction they gained in the past time. Vice Chairman of Peoples Committee of Tra Vinh Province, Tong Minh Vien, said: To put an end to suspended projects and ensure investment efficiency, e Vietnam needs general policies to control registered and disbursed capital of foreign investors. He added that many investors applied for huge projects in order to get bigger land while their actual capital was much smaller. This affected the local investment environment as well cal as rights and interests of legitimate investors, he continued. Tra Vinh had found at least five idle projects. Indeed, many investors registered millions of US dollars of investment capital but their headquarters in their homeland countries were just small offices, he added, citing a survey by his province. Mr Tran Thanh Lap, Vice Chairman of Hau Giang Provincial Peoples Committee, said: The door is opened wide, policies are easy easygoing and procedures are quick but Hau Gi Giang is unyielding to incapable investors, sluggish projects to

cleanse up the investment environment and create the opportunity for capable investors. In addition to "declaring war" to slow slowgoing projects and cleansing up the investment environment, the province takes deep care of ovince investors, especially those facing objective difficulties, and creates most favourable conditions for them to carry out their projects smoothly. Specifically, when they face financial difficulties that may lead to the slow progres of their projects, progress the province will coordinate with them to find out solutions to speed up the progress. Binh Duong, an experienced province in attracting investment capital, is determined to reject labour-intensive and environment intensive environmentpolluting projects. vccinews.com

FDI is expected to remain constant in 2012

Vietnam expects foreign direct investment to hold steady this year amid turbulent local and global economies.

The Ministry of Planning and Investment (MPI) last week announced the foreign direct investment (FDI) commitment target in 2012 would be $14-$15 billion, while disbursement capital was expected to hit $11 billion, the same as last year. Nguyen The Phuong, Vice MPI Minister, said these are not ambitious targets because many foreign investors still considered Vietnam an attractive destination. He added the government in 2012 would focus on calling investment from transnational companies with advanced technologies and strategic investment partners like Japan, South Korea and the European Union. We will prioritise infrastructure, environmental-friendly, supporting industry and hi-technology projects and the ones which add Vietnam into the global supply chain, Phuong said. Foreign investors last year committed to invest in 1,091 projects in Vietnam, capitalised at $11.55 billion, falling 35 per cent year-onyear, according to the MPI. However, expansion was seen at 374 operational projects in the country with total capital of $3.1 billion, up 64 per cent against the same period last year. Transnational companies including solar panel manufacturer First Solar, mobile phone maker Nokia and Hyundai Motor Corporation announced new investments in Vietnam last year.

Phuong said the government would change strategies for FDI attraction to enhance the competitiveness of the country by strictly implementing Direction 1617/CT-TTg. 1617/CT The prime ministers direction, issued last September, assigned the MPI to work with other ministries and localities to raise the efficiency of FDI attraction in th next decade. the Furthermore, the MPI in collaboration with ministries of Industry and Trade, Finance, Construction, and Natural Resources and Environment to make policies for development of supporting industries, tax incentives, trans transpricing prevention and natural resources management. All of those policies must be completed within 2012. As we know, ministries and other state authorities are actively implementing the direction of the prime minister. The results will be completed in a short time, said Phuong. If the country failed to ng. warm the investment climate to attract more FDI projects, the economic growth target would be negatively impacted on, he said. Last year, foreign-invested foreign companies contributed $3.5 billion to the state budget, increasing 15 pe per cent year year-on-year. Export turnover from foreign foreign-invested companies is estimated at $54.4 billion, accounting for 59 per cent countrys total export turnover and up 39 per cent from one year earlier. baodautu.vn

FDI Spending Equals 2010 despite Problems Safety clothing is made by workers at the Japan Japan-invested Toyotsu Vehitecs Viet Nam in the southern province of Binh Duong. The disbursement of foreign direct investment (FDI) this year reached last year figures of US$11 years billion despite challenges caused by tough economic conditions, the Foreign Investment Agency (FIA) reported yesterday.

In 2011, the country attracted $14.7 billion in FDI, equal to 74 per cent of 2010. Over $11.5 billion came from 1,091 newly newly-licensed projects while the rest wa from 374 was existing projects that increased their capital. Despite Despite the disbursement figure, most of these projects have decreased investment but there is a clear sign that Viet Nam poses a great place to investment for foreign investors, said head of FIA Do Nhat Hoang. Hoang attributed the down down-turn to a lowering of capital for projects costing more than $1 billion dollars. In previous years, Hoang said, capital from such projects had

accounted for the majority of total registered capital but this year it had come down. Hoang cites the fact that in 2008 there were 11 projects with more than $1 billion in capital which accounted for 64 per cent of total capital, which was lowered to five in 2009, three in 2010 and only two this year. Another key difference from last year was that less investment had been put into real estate, which made up only 5.8 per cent of total investment, compared to 34.3 per cent last year. The industrial and construction sector attracted the largest share of FDI, accounting for 76.4 per cent. It is a really high scale because it was only 54.1 per cent in 2010, Hoang said. Singapore, South Korea, Japan and Taiwan continue to be Viet Nams leading sources of foreign investment. Provinces and cities which attracted a large volume of FDI were HCM City, Ba Ria-Vung Tau, Ha Noi, Dong Nai and Binh Duong. Despite a global economic downturn, the foreign-invested sectors have continued to make a significant contribution to the countrys economy this year. An estimated $54.5 billion was generated from exports this year, a year-on-year increase of 39.3 per cent, and 59 per cent of the countrys total exports.

Imports surged by 29.3 per cent against last year figure of $47.8 years billion. Yesterday, FIA also announced that in 2011, 75 projects were t licensed to invest in 26 foreign nations and territories and the investment in 33 projects had been 8crutinize 8crutini $2.12 billion. crutinize, Plans for 2012 FIA has forecast that registered FDI was likely to reach $15 $15-16 billion and about $10-11 billion would be implemented in 2012. FDI attraction next year will focus on quality rather than quantity, quantity, said Deputy Minister of Industry and Trade Nguyen Tien Phuong. Viet Nam will welcome projects in fields such as green greentechnology, h high-tech industry and human resources. resources. He added that the country would limit investment in non non-production sectors. Sectors increasing imports and projects using out-of-date out technologies which harm the environment would be heavily 8crutinized Phuong said. crutinized, To reach this goal, new regulations and new priorities will be set up. up. Last year, the country attracted US$19.7 billion in FDI and disbursed US$11 billion. vietnamnews.vnagency.com.vn Speaking at the signing ceremony, Ahom Toulanom highly appreciated the investment cooperation of Vietnamese businesses in Laos. He said they esses made contributions to protecting the environment, raising social welfare, eliminating hunger and reducing poverty. For his part, Hoang confirmed that the rubber tree planting project will create jobs for local people and that the company will transfer e technology to the locality. He Vietnamese business invests in rubber plantation in Laos The project will be implemented in Bachiangchaleunsouk and Paksong districts in Champasak province, and Laykhonpheng and Lao Ngarm districts in Salavan province over 40 years. The land leasing contract was signed in Vientiane, Laos on December 30 by Ahom Toul Toulanom, Laos Deputy Minister of Natural Resources and Environment, and Le Chi Hoang, General Director of Dau Tieng Rubber Corporation.

expressed hope that central and local authorities will continue to create favourable conditions for the company to carry out the project effectively. vir.com

still considered a favourable investment environment due to its political stability, young labour pool, low labour cost, an and growth potential. According to the Japan External Trade Organization, the number of Japanese projects in Vietnam increased by 82 per cent last year. Motonori Tsuno, Chief Representative of the Japan International Cooperation Agency, says that Japanese in investors are mainly focusing on production, manufacturing and service. Vietnam is an important partner of Japan in Southeast Asia and the relationship has developed into a strategic partnership, he says. The regions growth has contributed to Japans gro growth and to regional stability. Another emerging economy, India, also considers Vietnam to be in a key position in its Eastward policy. In recent years, the Vietnam VietnamIndia strategic partnership has steadily expanded with two two-way trade turnover fetching $3.5 billion last year. This year, Vietnam and India will celebrate 40 years of bilateral diplomatic ties and 5 years of strategic Partnership. This July, direct flights linking between the two countries will be launched. Indian Foreign Minister Somanahalli Mallaiah Krishna has called this year llaiah a turning point in the friendship of the two countries. Russian Ambassador to Vietnam Andrey G.Kovtun maintains that

Vietnam an Asian partner in need Its membership in the dynamically developing group ASEAN will make Vietnam a partner sought after by many countries in 2012.

relations with Vietnam will be the highest priority of Russian diplomatic policy in Asia in 2012 and subsequent years. Russia bsequent particularly wants to strengthen its friendship and cooperation with Vietnam in economics, trade, and investment. Russias recent WTO entry and the expected signing of Free Trade Agreements with Belarus, Kazakhstan, and Vietnam the Taxation Alliance should boost trade between Vietnam and Russia. Russia and Vietnam have signed many cooperative agreements, he recalls. Over the past two years, we have initiated projects related to Vietnams first nuclear power plant and we will expedite these projects. We will also ite move toward a free trade area for members of the Taxation Alliance. In 2012, Russias assuming the APEC Presidency and cooperation among signatories to the Taxation Alliance will help to simplify trade procedures among these parties. e The centre of gravity of the global economy is drifting from West to East. Unifying the Asian economy through cooperation mechanisms between ASEAN and China, Japan, and the Republic of Korea and the signing of regional investment agreements are likely to boost regional growth. Establishing solid relations with economic partners will allow Vietnam to take full advantage of these mechanisms for national growth. english.vov.vn

ASEAN countries should continue to be among the worlds economic recovery leaders this year. Six ASEAN members - Vietnam, Indonesia, Malaysia, Thailand, Singapore and the Philippines - are forecast to achieve 6 per cent growth over the next five years. American management consulting firm A.T Kearney recently released its 2012 FDI Confidence Index report listing emerging Asian markets as the most attractive destinations for investors this year. Although its economic growth has slowed down a bit, Vietnam is

Chan May - Lang Co Economic Zone: Growth Prospect

Vietnamese projects capitalised at VND15,495 billion. Speaking of the economic zone development, Mr Ho Si Nguyen, Head of Chan May - Lang Co Economic Zone Authority, said: It is too early to make an accurate assessment on an economic zone within just five years. Our current hin success should have taken at least 20 years. It is much more difficult to develop a general economic zone because it also comprises urban area, tourism area, seaport area, industrial area and nontariff area. The EZ constr construction and development process is still actually in the pilot phase. The authority is simultaneously going forward while tuning up orientation, policy and development mechanisms. Chan May - Lang Co does not aim to attract investment projects at any cost, but carefully selects the most capable, suitable investors. Mr Ho Si Nguyen affirmed: We believe that we will be successful if we are persistent with the way we have chosen. Slow but sure! Up till now, Chan May - Lang Co Economic Zone has zoned out and made detailed plans for functional areas like urban area, industrial area, non non-tariff area, tourism area, and waterfront area. A number of important strategic planning projects have been also established, including Chan May Port detailed planning and Chan May urban area, which were advised by foreign consultants. The economic zone is housing some major

Chan May - Lang Co, one of 15 coastal economic zones in Vietnam, covers a land area of 27,100 hectares, including 10,000 hectares for economic development zone, in Lang Co town, Loc Thuy, Loc Tien and Loc Vinh communes of Phu Loc district, Thua Thien - Hue province. Together with Chu Lai, Dung Quat and Nhon Hoi, the formation of Chan May - Lang Co will become a nucleus of growth for central Vietnam and serve as a bridge for the central region with North-east Thailand, central Laos and Northeast Cambodia. Chan May - Lang Co EZ is developed in a general open growth model operated by a separate legal framework with a favourable investment and business environment and special incentive policies applied to investors. Chan May - Lang Co consists of five major functional areas, namely non-tariff area, urban area, industrial area, tourism area, and seaport area. To date, the EZ is housing 34 investment projects with total registered capital of VND36,486 billion (US$2.28 billion), including 10 FDI projects worth US$1.312 billion and 24

investment projects like the US$875 million Laguna Hue project invested by Singapore-based Banyan Tree Group, the VND5,230 billion Lang Co golf course and r resort project, the VND2,654 billion industrial area and nontariff area infrastructure project invested by Saigon Invest Group (SGI), and the VND500 billion petroleum depot and port project invested by the Vietnam National Oil and Gas Group (PetroVietnam). Given current results, Chan May - Lang Co is expected to attract more investors in the future, thus generating a new image of a dynamic, friendly and hospitable Thua Thien Hue province - an ideal destination for domestic and international investors and to tourists. vccinews.com