Hung Yen creates favourable environment for investment attraction

Creating a favourable investment environment

Over recent years, Hung Yen has focused a great deal of resources on investing in infrastructure, renovating and upgrading thousands of kilometres of roads, creating a synchronous traffic network connecting it with economic centres and important traffic hubs in the Northern Key Economic Zone and the Red River Delta. The power grid infrastructure has been synchronously invested and renovated; information technology infrastructure has been strongly developed; while administrative reform and administrative procedures have been implemented synchronously and drastically with positive changes. Hung Yen province has developed a plan as approved by the Prime Minister on the planning and development of 15 industrial parks with a total area of ​​over 3,887 hectares. Of which, seven industrial zones have been granted investment policy decisions and are in operation, including Pho Noi A Industrial Park, Textile Industrial Park, Thang Long II Industrial Park, Minh Duc Industrial Park, Yen My II Industrial Park, Minh Quang Industrial Park, and Yen My Industrial Park; with an area of ​​industrial land for lease in industrial zones reaching about 877 ha, along with eight other industrial zones in progress. At the same time, Hung Yen has decided to establish 16 industrial clusters with a total area of ​​more than 763 hectares. Up to now, the province has 2,000 valid investment projects, including 1,513 domestic investment projects with registered capital of more than VND186 trillion and 487 foreign-invested, with registered investment capital of nearly US$5.2 billion.

New investment attraction solutions

In order to continue creating a favourable investment environment attracting both domestic and foreign investment, Hung Yen has implemented many new solutions: reviewing, supplementing, and promulgating new regulatory mechanisms and policies on industrial and handicraft development; regulations on receiving and implementing investment projects on the infrastructure in industrial zones and industrial clusters; secondary investment projects; social housing projects in areas where industrial parks are concentrated, so that they ensure attractiveness for investors and convenience in the implementation process. The province has also focused on researching and developing a specific incentive mechanism to attract hi-tech agro-food processing projects from the province's agricultural and food sources; supporting industry production projects with high added value in the fields of electronics, telecommunications and digital technology; and projects on waste collection, treatment and recycling, especially in industrial zones, industrial clusters and concentrated industrial and handicraft production areas. Hung Yen has reviewed and adjusted its mechanisms and policies, adequately allocating funds from the State budget to support scientific and technological research and application /technology transfer in industrial and handicraft production in order to encourage and promote the application and development of new technologies and digital transformation in the production and business activities of enterprises.

Hung Yen continues to restructure its industrial sector towards increasing added value and sustainable development, developing a project on restructuring the industrial and commercial sectors of Hung Yen province for the 2021-2025 period, with a vision to 2030, identifying policies to encourage investment, giving outstanding incentives with high competitiveness to attract strategic investors and large industrial corporations. The province is shifting its focus in terms of attracting investment in industrial development from quantity to quality, giving priority to attracting projects with high added value, such as hi-tech industry, digital technology industry, supporting industry, etc, the focus on the supporting industries serving industrial production, especially large processing and manufacturing industries such as textiles and garments, mechanical engineering, electronics and information technology and electric automobiles and motorbikes in the direction of sustainability. It is also focusing on “locomotive” investment projects to attract satellite production projects and value chains, while gradually reducing small-sized and simple industrial production projects with low added value. Local enterprises are encouraged and supported to gradually transform their production and business methods to take advantage of Industrial Revolution 4.0, upgrading their technology, machinery and equipment, and corporate governance capacity to become a supplier and satellite of large domestic and foreign enterprises and corporations.

Hung Yen aims to accelerate investment and development of its infrastructure to synchronously develop industry and handicrafts, especially the industrial zones and clusters as planned. The specific measures to realise that goal are maximising legal capital sources from all economic sectors to continue investing in synchronous technical and social infrastructure, focusing on its transportation system, inland customs clearance ports, logistics centres, electricity grid, information technology, water supply and drainage, new urban area development and social housing, thus creating favourable conditions for attracting and implementing investment projects in industrial production in the province. Hung Yen will continue to review and develop the planning for the development of industrial zones, integrating it into the Hung Yen Province Plan for the 2021-2030 period, with a vision to 2050, with priority given to industrial zones located in the Ly Thuong Kiet industrial and service urban zone, industrial parks adjacent to the routes connecting the two highways of Hanoi - Hai Phong and Cau Gie - Ninh Binh, and the industrial zones adjacent to the planning of the Hanoi - Hai Phong expressway’s frontage roads. The province aims to speed up the implementation of technical infrastructure investment projects for established industrial clusters, with a focus on solving difficulties and obstacles for investors and ensuring a registered investment progress, while also resolutely withdrawing projects that are delayed without valid reason. Developing human resources and science and technology to serve industrial and handicraft production is also a must, along with improving the efficiency of investment promotion, trade promotion and industrial promotion to support enterprises, implementing and promoting the effectiveness of the scheme on promoting investment attraction, improving provincial competitiveness index (PCI) for Hung Yen in the period of 2021-2025, with a vision to 2030, as well as developing investment attraction programme for each district, town and city in the 2021-2030 period, with a vision to 2030. The province has set its targets regarding FDI attraction using four major orientations: quality, efficiency, sustainable development and with a commitment to technology transfer and highly skilled labour. ODA capital is to be concentrated in major socio-economic infrastructure projects and key urban infrastructure. Domestic capital focuses on large corporations and companies investing in production and business projects, as well as urban infrastructure projects. Beside attracting major investors, the province also hopes to attract small and medium investors suitable to each field and each location. Protecting the environment in the process of industrial and handicraft development is also required.