Quang Ninh to Boost Number of Investment Projects
The Quang Ninh People’s Committee has recently announced a proposal which calls for investment into 35 projects in the province during 2014-2016 and with an orientation to 2020.
The proposal, titled Decision 1016/QD-UBND, affects the following sectors: industrial, transport and urban infrastructure, culture, sport, tourism, trade, health, education, training, environment and agriculture.
So far in 2014, the province has licensed 20 projects with a total registered capital of more than VND5.94 trillion, an increase of 1.2 times compared to 2013. Quang Ninh is focused on further improving its business environment and intensifying provincial-level competitive capacity in order to attract more investment.
Home to the famous Ha Long Bay, Quang Ninh Province is located on the north-eastern coast of Vietnam. The provincial capital is Ha Long. Quang Ninh is a strategic investment location in Northern Vietnam; it is part of the economic development triangle in the North (Hanoi – Hai Phong – Quang Ninh).
Quang Ninh province has two economic zones (EZ) and 11 Industrial Parks (IP). The monthly minimum wage in the Ha Long Bay area is VND2,100,000. Energy costs for industrial use range between VND1,158/Kwh and VND2,306/Kwh. For all non-industrial businesses, energy costs range between VND1,909/Kwh and VND3,593/Kwh. Water prices vary according to usage, from VND4,000/m³ for the first 10m³ and VND6,500/m³ from then on.
In recent years, Quang Ninh Province has achieved remarkable economic progress. GDP growth between 1996 and 2000 averaged 7.54 percent, and in 2013 GDP grew to 12.65 percent.
Recently, the Ministry of Planning and Investment (MPI) has submitted to the Prime Minister a draft decision addressing the specific incentives to be given to Quang Ninh province in order to mobilize investment capital.
The draft proposes to set up a pilot State-owned finance and investment company in the province. This will help to better mobilize investment capital to develop the province’s infrastructure as well as other important socio-economic sectors.
The company will follow the model of the Ho Chi Minh City (HCMC) Finance and Investment Company, which is a wholly State-owned company with a charter capital of VND5 trillion (US$234.74 million). The company’s objective is to mobilize capital from domestic and foreign organisations and individuals to invest directly or indirectly into the city’s prioritised sectors.
According to the MPI, Quang Ninh will implement 312 projects using State funds to boost the province’s socio-economic development during the 2013-15 period.
The industries that will be promoted are production of consumption goods, food processing, and seaport economic development. The government will also take the lead in international cooperation and foreign investment attraction.