Investors' rendez vous
Danang, the coastal city in central Vietnam, will soon host an
international conference on foreign investment. On this occasion to be
held on March 6-7, the Weekly interviews Mr. HOANG TUAN ANH, vice
chairman of Danang.
Despite advantages, Danang has yet to fulfill its
targets for foreign investment attraction. In your
opinion, what are the causes of the lackluster
performance in the past?
It's correct to say that Danang is endowed with a
host of advantages such as a strategic location,
infrastructure, human resources and policies on
attracting foreign investment. However,
considering the current situation, only advantages
are barely enough.
To lure more foreign investment, it's necessary to build an attractive,
highly competitive investment environment that is adaptive to every
phase of the regional and international development.
Since the 1997 financial crisis, the global foreign direct investment (FDI)
has nose-dived; last year's global FDI was only a half of the average
figure of the pre-crisis period. Meanwhile, many [of our] neighbors have
reshuffled their economies and revised policies to enhance the attraction
of the investment environment, for instance WTO accession. Therefore,
the international FDI flow seemed to be smaller as competition for it
became much tenser.
In this context, the Government has taken an array of important
measures, such as revisions of foreign investment policies,
administrative reforms, tax revisions, gradual abolition of the dual-price
regime, and reduction of telecom prices. The fact that Vietnam is still
tackling its disadvantages in comparison with countries in the region has
adversely affected the inflow of foreign investment.
As far as Danang is concerned, several weaknesses still exist side by
side with strengths. For instance, Danang lacks financially and
managerial strong companies that can be potential partners in
foreign-invested projects. Its human resources are inadequate while the
city has yet to build supportive industries, maritime transport fees remain
high and procedures are cumbersome.
Danang has made tremendous efforts to improve the investment
environment; that is to say the establishment of the Investment Promotion
Center that operates under the one-door mechanism, the acceleration of
industrial park construction, the upgrade of the city's infrastructure, and
investment promotion efforts in foreign countries. How effective are these
measures so far?
Danang's efforts to attract foreign investment can be basically classified
into three groups. They are administrative reforms to adopt the one-door
regime, free advice for investors and investment promotion; tax and land
rent incentives; and completion of infrastructure in IPs.
After three years, Danang has partly improved the situation of foreign
investment. In 2001, the city had only six FDI projects capitalized at
US$14 million. Last year, it hosted eight projects with US$52 million, and
since early 2003 three projects have been licensed, which pledged a
total capital of US$31 million.
Generally speaking, these are only initial and humble results. In the
coming time, Danang must continue to implement the above policies as
well as other measures to better meet investors' demands.
Beginning in 2003, business opportunities in Danang will be more
abundant due to the fact that Vietnam will further integrate into AFTA
(ASEAN Free Trade Area) and Danang will become a gateway of the
East - West Corridor. To be well prepared for this occasion, Danang is
stepping up administrative reforms at seaports to cut transport fees and
ensure quick and smooth maritime transport. Another vital measure to be
taken by the city is to complete the land and resources planning for
every sector and industry so that various options can be introduced to
foreign investors. Coupled with the encouragement of supportive
industries using both domestic and foreign capital, Danang has invested
in upgrading vocational schools, as well as existing economics and
foreign-language universities to guarantee a highly skilled labor force
suiting employers' needs.
Danang's leadership is committed to actively helping investors in project
development and tackling problems rapidly and responsibly. Investors,
please don't hesitate to contact us.
Danang is geared up for an international foreign investment conference,
arguably the first of its kind in Vietnam. What do you expect of that
meeting?
The 2003 international conference on investment, trade and tourism in
Danang is the first step of a campaign to promote Danang in the region
and the world. It is aimed to introduce Danang as a coastal city with a
great development potential, healthy and friendly living environment and
favorable business climate, which is a rendezvous for investors. I
believe that the conference will create good impressions on investors
and there will be many investors coming to Danang to explore business
opportunities. We will join hands to build a beautiful and wealthy Danang
on the coast of the Pacific.
By Huynh Hoa - The Saigon Times Weekly - March 01, 2003.
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