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THE SPEECH OF DONG NAI PROVINCE
AT THE INVESTMENT SEMINAR IN SWITZERLAND
EMA
INVEST FAIR - SEPTEMBER, 2001
First of all, I would like to express my pleasure for my attending the investment seminar at
EMA Investment Fair. On behalf of the People's Committee of Dong Nai
Province, I would like to say many thanks for your time and I hope that It is a good chance for you to understand more and more about the investment environment in Viet Nam and Dong nai Province in particular.
Dong nai Province lies in the key economic triangle of the South of Viet Nam. It borders with Ho Chi Minh City. It covers an area of 5,860 Km2, has nine administrative units such as Bien Hoa City and eight districts with 163 villages and wards and towns. It has over 2,04 million people. It is one of the biggest and busiest provinces of Viet Nam. Over last 10 years, Dong Nai always achieves the increasing speed of economy and its stability. The increasing speed of economy is 13 % in average over last ten years, 1.7 fold compared with the average of the whole country. The economic structure has been moved from agricultural economy towards Industry - Service - Agriculture with the density of industry 52% ; service 25% ; agriculture 23%. In this phrase, the average increasing speed of industry is over 20%; agriculture 4,2%, trade-service 8,3%, in which the export turnover increases 45%. The economic development has changed diligently and stabilized the society, living, security and politics.
THE INVESTMENT POTENTIAL OF DONG NAI :
First : Dong nai province has the advantage of geographical location. It lies in the key economic triangle, the natural disasters like floods and typhoons rarely happen. The average temperature is 25-26oc. The rainfall is about 1,500mm to 2,700mm separated into the areas and crops. The land is highly fertile soil, it has component and enough solidity (over 2kg/cm2), without much land leveling cost and building the foundation of projects. It is suitable for developing industrial investment and constructing a work with a low cost.
Thanks to the above potential, by the year of 2010, 17 Industrial Parks will have been developed within and 8,120 ha area, not including handicrafts with small scales. 10 Industrial Zones within a 2,720 ha area have been ratified by Vietnamese Government. The infrastructure has been completed synchronously. it is ready welcome the internal and foreign investors.
Second : Dong nai has a plenty potential of agriculture. The agriculture land is mainly basalt soil, suitable to develop industrial crops and fruit trees such as rubber tree (42,500 ha ; 37,500 tons), coffee tree (25,000 ha ; 30,000 tons), cashew tree (30,000 ha ; 15,000 tons), soy - bean (15,000 ha ; 13,000 tons), maize (60,000 ha ; 200,000 tons), tobacco (13,000 ha ; 9,000 tons), sugar cane (14,000 ha ; 640,000 tons), cassava - root (15,000 ha ; 260,000 tons), fruit tree (22,000 ha ; 143,000 tons) ... It is an important material for processing industry. In fact, Dong Nai is one of the provinces which leads in animal food products. And there are a lot of breeding farms with industrial scale, the total cattle of 70,000 ones, pigs of 600,000 ones and poultry of 11 million ones.
Third : The infrastructure in Dong Nai is quite comfortable compared with other areas.
- Bien Hoa City is far Ho Chi Minh City about 25 km. The available infrastructure and service of its neighbor like Ho Chi Minh City make Dong Nai Province even more appealing as an investment destination such as airports, ports, telecommunication, hotels and other services.
- Dong Nai integrated in the national highways, railways and waterways, therefore the investors in Dong Nai are easy to connect with the provinces in Central South and South of Vietnam.
- In the national plan for the growth of key economic triangle in the South Vietnam, some of infrastructures will have been used for the projects in Dong Nai :
+ The deep harbors in Go Dau (15 ton-ship), Phuoc An (30,000 tons), Phu Huu (20,000 tons), Thi Vai ( 50,000 tons),
+ The inland clearance depot (ICD).
+ The new international airport in Long Thanh district.
+ The gas pipeline system from Vung Tau to Ho Chi Minh City via Dong Nai.
+ The freeways Ho Chi Minh City - Bien Hoa - Vung Tau and Ho Chi Minh City - Long Thanh - Vung Tau.
Fourth : Dong Nai has a plenty potential in minerals and natural resources.
Dong Nai has a plenty of water resource, in which there is Dong Nai river with flow 880m3/s ; Tri An lake with a 323 km2 area, the capacity of nearly 2,8 billion m3, the underground water reserve of nearly 3 million m3/day. It is enough to supply for production and living. Except for valuable natural resource (valuable stone and metal), Dong Nai is being rich in forest natural resources, granite stone and construction mine, clay, kaolin, sand and pebble … It is also favour of building material production, natural resource process.
Fifth : Dong Nai has its work forces with urban population 670,000 people (33%), 1,1 million laborers (54%) with well-educated, industrial manners. They are able to accept and adjust to the technology transfer for raising the effect and competition.
THE RESULT OF ATTRACTION FOR FOREIGN INVESTED OWNED
CAPITAL :
In Dong Nai, there are 300 FDI enterprises from 22 countries, regions and territories with the registered capital of US$ 4,7 billion, is the third province of Vietnam after Ho Chi Minh City and Hanoi Capital.
In the early nine months of 2001, foreign investment increases 2,5 fold compared with the same time of 2000 and continues to increase strongly.
Form of investment : Most of foreign investment projects in Dong Nai are 100% foreign owned capital (230 projects), next to joint - venture enterprises (68 projects), business co-operation contracts (02 projects).
Line of business : Foreign investment projects in Dong Nai mainly focus on industry and construction (96,4%), trading services (2,6%), agriculture and silviculture (1%).
Foreign investment enterprises occupy the proportion of 26% economic structure, 92% import-export turnover, 63 % industrial output value, 21% budget and receiving about 90,000 laborers. it is really become an important part of Dong Nai 's economy.
For enterprises in Europe, there are 40 enterprises which have invested in Dong Nai province with registered capital of
US$ 380 million, including the projects such as Nestle-Switzerland for processing tonic food (US$ 43 million), Novartis-Switzerland for pocessing pharmaceutical product and agriculture pharmaceutical material (US$ 15,7 million), Shell Group-Holland for processing lubricant products (US$ 46
million), Bourbon Group - France for business on supermarkets (54 US$ 61 million),…
Almost European investors have carried out their projects previously, and have achieved good results. And their projects have been appreciated highly by Vietnamese Government and Dong Nai province. So, we would like to welcome more and more European investors in Dong Nai.
SOME ORIENTATIONS OF ATTRACTION FOR FOREIGN INVESTMENT IN DONG NAI :
Dong Nai province has been appreciated in implementing the attraction for foreign investment actively by Vietnamese Government and investors. In addition to executing the Government regulations, by the way, I would like to inform you some methods which Dong Nai has been implementing :
- Sectors in priority : Dong Nai always helps the investors looking for opportunities to invest all kinds of sector, except sectors which are forbidden by Government (such as projects which influence to security and national defense, public welfare, historical vestiges, education, good custom and ecological environment, harmful chemistry forbidden …). We are specially interested in the some kinds of project such as :
+ The rate of high export products.
+ Clean industry, labor intensive enterprises.
+ Hi - tech industry such as new material industry, biological industry, telecommunication and producing the equipment of electricity, electron …
+ Exported meat and agro - products processing industries.
+ Seeds, new technology in agriculture and agricultural services.
+ Services at Industrial Parks.
- Areas in priority : Dong Nai always encourages the investors established their projects in the planned Industrial Zones, specially 10 Industrial Zones which have been ratified by the Government and secluded areas and districts of the North.
- The price of rent land : From 0,09 to 9,6 US$/m2/year, except Bien Hoa city and towns. For other areas, the price of rent land with infrastructure is from 0,01-0,09 US$/m2/year, including a popular price from 0,030 - 0,045 US$/m2/year. If, there are infrastructure developers in Industrial Zones, the investors must pay infrastructure fee by agreement. For the investment encouraging projects and areas, the investors will have exempted the price of rent land from 7 - 11 years according to investment business and location.
- Issuing the investment licenses : The projects which the People's Committee of Dong Nai province and Department of Industrial Zone Administration (DIZA) issue the licenses settle within 5 days (for the projects under registered) and within 15 days (for the projects which are considered and decided) when having enough regular documents.
- Management structure : Dong Nai has implemented the " one-door " management structure through DIZA (for the projects are in Industrial Zones) and the Planning and Investment Department (for the projects are outside Industrial Zones). The investors will be guided and helped the investment problems when they are connected with the above departments.
In the other hand, we are checking, readjusting and improving the administrative procedure all sidelly from survey and introducing sites to issuing the investment licenses. It is specially the management of projects after having the licenses by publicizing the plan and process; regulating the inspection and reward … It often increases the meetings between the enterprises and Dong Nai's leaders in order to solve the investors' difficulties.
With the reform on policy of Vietnamese Government, we believe that the investment chances will continue to enlarge and the business investment activities will be more and more favourable in Vietnam.
Once more, many thanks to you, to the departments, to businessmen and investors, specially to the Ministry of Foreign Affairs and the Organization of EMA Investment Fair - Switzerland which give me a lot of opportunities to introduce about the investment potential of Dong Nai province.
Wishing you healthy, happiness and success.
Thanks for your time and we hope to receive many ideas from you.
- The end -
PB - Thuy Si
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