Ba Ria-Vung Tau attractive to investments
Ba Ria-Vung Tau attractive to investments
The southern province of Ba Ria-Vung Tau continued to be a magnet for investors last year.
The southern province has long been popular with foreign investors and has continued attracting new projects
At a Lunar New Year meeting with investors in the province last Friday, local authorities announced that as of December 2014, Ba Ria-Vung Tau was home to 290 foreign direct investment (FDI) projects capitalised at $26.7 billion, making it one of the top localities nationwide in terms of FDI attraction.
In 2014, three new FDI projects obtained investment certificates, including the $34-million Lotte Vung Tau commercial centre, the $27-million fertiliser production plant of Germany’s Behn Meyer Agricare Vietnam Co. Ltd., and the Spain-funded pilot solar power project in Con Dao island district worth $15 million.
Meanwhile, six FDI projects were approved to increase investment capital by nearly $220 million, with Thi Vai International Port accounting for $77 million and Posco SS-Vina steel plant contributed $84 million.
Foreign investors disbursed $1 billion to implement their projects in Ba Ria-Vung Tau last year, according to Nguyen Van Trinh, Chairman of the provincial People’s Committee.
He attributed the province’s FDI attraction success to local tax incentives and improved administrative procedures, particularly the operation of a ‘one-stop-shop’ mechanism.
Yoshihiro Hatano, general director of Vietnam Rare Elements Chemical JSC said Ba Ria-Vung Tau claimed a special geographical location and functioned as a gateway to other Southeastern provinces. In addition, it benefits from its proximity to the international Cai Mep sea port, which connects the province to other countries.
Vietnam Rare Elements Chemical JSC is the first rare earth production project in Vietnam with a total capital of $49 million. The company has recently inaugurated the first phase of the zircon plant at Cai Mep Industrial Zone, using Japanese advanced technology to process zircon ore to produce metasilicate and zirconium compounds with a capacity of 13,300 tonnes of zirconium oxychloride and 8,500 tonnes of sodium metasilicate a year.
The Ho Chi Minh City-Long Thanh-Dau Giay expressway, which came into operation last month, will drastically cut down the travel time between Ba Ria-Vung Tau and other neighbouring provinces. “It also boasts marine, thermal power, as well as oil and gas industries, promoting it as an ideal destination for investors,” Trinh added.
He spoke highly of domestic and foreign invested businesses’ efforts to overcome difficulties and boost investment, production and sales, thus significantly contributing to the successful completion of the province’s economic development objectives.
“Despite economic difficulties in 2014, the majority of economic sectors in Ba Ria-Vung Tau continue to grow steadily compared with 2013,” he said.
Roughly 7,000 domestic firms are operating in Ba Ria-Vung Tau. Last year they disbursed VND8.5 trillion (nearly $400 million) for business and production development.
In 2014,the province issued investment certificates for 24 new domestic projects worth over VND8 trillion ($376 million).
Trinh said businesses played a pivotal role in the province’s social development. Many firms and investors have donated to support the Fund for the poor, the Fund for Agent Orange Victims, the Study Promotion Fund, and the Social Security programme.
According to Trinh, Ba Ria-Vung Tau will keep addressing arising issues to improve the investment climate, especially in terms of administrative procedures. In 2015, the local authority will create even more favorable conditions to attract both domestic and international firms to the province.
