Projects with special investment incentives and investments in areas with particularly difficult socio-economic conditions will be completely exempted from land rent.
30% reduction in land rental price for investment projects in light industrial production (garment, footwear, textile); processing industry, export production; electronic production lines using advanced technology.
50% reduction in land rent for investment projects in environmental protection, agricultural, forestry and fishery production; aquaculture; production and application of information technology, biotechnology and new materials.
During the period of basic construction of the enterprise, if there is a need for land or water surface to build a warehouse for storing materials, equipment, or camps, the land will be considered for loan without having to pay land rent. The enterprise is responsible for paying compensation for site clearance; managing and protecting the land during the period of use, returning the land with environmental sanitation conditions, ensuring safety when the term of use expires.
Construction works serving the project if they are of a public service nature (non-exclusive) such as: roads, trees, parks, schools, hospitals... outside the enterprise fence will be exempted from land rent.
Quang Ninh Provincial People's Committee widely publicizes information about
- List of projects calling for foreign investment.
Procedures for forming, appraising and managing the implementation of foreign-invested projects.
Land rental price frame for each area.
Procedures for appraisal of preliminary design, technical design, environmental protection plan; procedures for land lease, import and export, immigration, labor registration.
Provide free information to investors related to the preparation of project dossiers for investment license applications. Detailed planning maps and cadastral maps of leased land. Investment projects in areas without detailed planning maps and cadastral maps will be funded by the provincial budget for implementation.
Foreign investors are guided through the following procedures:
- Prepare land lease application and sign land lease contract.
- Register import plan for machinery, equipment, spare parts, supplies, raw materials...
- Guidance and support to quickly resolve customs procedures for import and export goods.
- Prepare environmental impact assessment report (if the project is related to this issue).
The Provincial People's Committee requests that sectors and localities in the province, when having a need to work with enterprises, must discuss in advance with the Management Board of Industrial Parks and Foreign Investment about the program and content. The Management Board of Industrial Parks and Foreign Investment is responsible for reporting to the Provincial People's Committee and arranging working sessions to:
- No overlapping content;
- Do not let many delegations come to work with businesses at the same time, affecting production and business activities;
- Notify the business in writing at least 05 days in advance.
Foreign-invested enterprises are entitled to enjoy the same prices for tap water, garbage collection, wastewater, construction fees, design fees, design appraisal fees and prices for services under the authority of the locality as Vietnamese enterprises operating in the same field in Quang Ninh.
Foreigners working in foreign-invested enterprises in Quang Ninh for 1 year or more and their family members residing in Vietnam will be granted preferential cards by the People's Committee of Quang Ninh province to enjoy the same service price as Vietnamese people when visiting historical, cultural and scenic sites in Quang Ninh province.
Quang Ninh province supports training of workers meeting level 2 vocational standards (according to current regulations of the Vietnamese Government) for the project at the request of the investor at the province's vocational training facilities.
In case the enterprise trains its own workers, it will be supported with training costs at the following levels:
- 500,000 VND/person for projects employing less than 200 workers.
- 800,000 VND/person for projects employing over 200 workers.
This training cost support only applies to local employees recruited for the first time under a long-term labor contract and is calculated based on the actual number of employees employed at the enterprise for 1 year or more.
Investors are supported with project document preparation costs of 10 million VND (for projects with total investment capital up to 3 million USD) and 20 million VND (for projects with total investment capital over 3 million USD) immediately after the project completes basic construction and goes into operation.
Bonus of 10 million VND for each licensed foreign direct investment project or project with increased capital adjustment for units directly handling foreign investment procedures.
Commissions for individuals or brokerage units of foreign direct investment projects are paid at the following levels:
Project size Commission level
Under 1 million USD 10,000,000 VND From 1 million USD to under 3 million USD 15,000,000 VND Over 3 million USD 20,000,000 VND
2.3. ASSESSING THE IMPACT OF FDI CAPITAL FLOWS ON THE SOCIO-ECONOMIC DEVELOPMENT OF QUANG NINH
2.3.1. Positive impacts
Foreign direct investment is an important source of capital for the province's economic growth. According to the ranking of the Ministry of Planning and Investment as of December 31, 2005, Quang Ninh ranked 12th in attracting foreign direct investment with 76 projects and 574,684,030 USD. If considered in the northern provinces, the scale of foreign direct investment in Quang Ninh is relatively large. That shows that with relatively favorable natural conditions and infrastructure, Quang Ninh is one of the attractive locations for foreign investors to invest in Vietnam.
Thanks to favorable conditions and the continuous efforts of Quang Ninh in enhancing investment cooperation with foreign countries, foreign direct investment
Foreign direct investment has been a very important source of capital for the province's economic growth. This is shown first of all through the scale and proportion of foreign direct investment in the total capital for basic construction in Quang Ninh province.
Table 2.14. Development investment capital in the province by capital source
(Unit: Billion VND)
Year
Target
2000 | 2001 | 2002 | 2003 | 2004 | 2005 | |
State capital | 2,795 | 3,549 | 5,085 | 6,318 | 7,500 | 8,643 |
Non-state capital | 1.255 | 1,594 | 2,284 | 2,838 | 3,370 | 3,883 |
FDI capital | 335 | 557 | 625 | 744 | 1,010 | 1,750 |
Total | 4385 | 5700 | 7994 | 9,900 | 11,880 | 14,276 |
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![Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
zt2i3t4l5ee
zt2a3gsnon-credit services, joint stock commercial bank
zt2a3ge
zc2o3n4t5e6n7ts
At that time, the Branch had to set aside a provision for credit risks, which reduced the Branchs income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giangs profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project Restructuring the system of credit institutions in the period 2011-2015 approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services.
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giangs products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Ministers Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giangs treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giangs income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giangs corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giangs card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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div.maincontent .s40 { color: black; font-family:Times New Roman, serif; font-style: normal; fo](https://tailieuthamkhao.com/uploads/2022/06/06/dich-vu-phi-tin-dung-tai-ngan-hang-thuong-mai-co-phan-dau-tu-va-phat-8-1-120x90.png)
Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
zt2i3t4l5ee
zt2a3gsnon-credit services, joint stock commercial bank
zt2a3ge
zc2o3n4t5e6n7ts
At that time, the Branch had to set aside a provision for credit risks, which reduced the Branch's income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giang's profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project "Restructuring the system of credit institutions in the period 2011-2015" approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: "Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services".
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giang's products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Minister's Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers' cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giang's treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giang's income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giang's corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giang's card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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Source: Quang Ninh Statistical Yearbook 2005
Foreign direct investment has contributed to creating new fixed assets and new facilities for production and business activities. This is an important premise to increase the amount of material and immaterial wealth created in the province, creating economic growth and improving people's lives.
Attracting foreign investment has made a positive contribution to the socio-economic development of many localities in general and Quang Ninh province in particular. Foreign-invested projects that have come into operation have gradually transferred management experience, modern technology, vocational training, and industrial style training for workers.
Foreign investment activities promote economic restructuring towards industrialization and modernization, increasing the proportion of industrial and service production value, reducing the proportion of agricultural production value; improving management capacity and technological level, contributing to expanding foreign relations and proactively integrating into the international economy.
Foreign investment attraction activities have had positive changes in awareness of all levels, sectors and localities. Localities and sectors have had
Timely support measures for businesses to resolve difficulties arising during project implementation (land, site clearance).
In recent years, the rate of attracting foreign direct investment into Quang Ninh has been increasing. The structure of investment capital is allocated quite reasonably (industry: 39.50%, tourism - services: 56.50%, agriculture - forestry - fishery: 4.57%). The province has attracted investment projects in areas where the province has strengths and needs to encourage investment such as: Food processing industry (vegetable oil, wheat flour production), coal mining and processing, electrical equipment, garment, export production (shoes, rubber, canvas, ... ) . Tourism - services account for a high proportion (32 projects, total investment capital of 290,348,348 USD, accounting for 42.11% of the number of valid projects and 56.50% of investment capital), including many large-scale entertainment investment projects to build infrastructure and create more products for the tourism industry such as: Hong Van Joint Venture Company, Vinh Thuan Joint Venture Company, Hai Ninh - Loi Lai Joint Venture Company, Hoang Gia International Joint Venture Company, Dolphin and Sea Lion Business Cooperation. Initially, the province has attracted projects to produce products with high technology content (microbial fertilizers, organic fertilizers); Industrial-scale aquaculture (G&A Joint Venture Company, Hoan Cau Investment, Production and Trade Company), contributing to increasing investment resources for development, in line with the socio-economic development orientation of the province, contributing to shifting the economic structure towards industrialization and modernization, promoting the potentials and strengths of localities.
Attracting foreign investment concentrated in large cities such as Ha Long and Mong Cai has contributed to creating a driving force to attract other regions and localities to develop together. The policy of encouraging and giving incentives to investment in areas with difficult socio-economic conditions has initially achieved results. Foreign investment attraction activities have expanded to other localities such as Yen Hung and Dong Trieu and have begun to appear in mountainous localities such as Tien Yen, a locality with difficult socio-economic conditions, contributing to the socio-economic development of the whole area.
Attracting foreign investment capital also affirms its important role in the socio-economic development of the province. Specific results of some indicators:
Table 2.15. Some main indicators of FDI activities in Quang Ninh
TT
Year | Revenue (USD) | Industrial production value (billion VND) | Export turnover (USD) | Pay to the State budget (USD) | Labor (people) | |
1 | 2000 | 117,029,875 | 1,398 | 37,300,000 | 9,723,783 | 3.113 |
2 | 2001 | 105.103.672 | 1,668 | 28,400,000 | 8,716,061 | 3,665 |
3 | 2002 | 122,550,000 | 1,717 | 17,900,000 | 12,500,000 | 4.106 |
4 | 2003 | 184.267.010 | 1,840 | 49,400,000 | 15,072,698 | 6,045 |
5 | 2004 | 258,518,000 | 2,230 | 107,000,000 | 20,042,000 | 10,000 |
6 | 2005 | 309,640.00 | 2,741 | 90,000,000 | 24,050,000 | 11,500 |
Source: Department of Planning and Investment of Quang Ninh, Quang Ninh Statistical Yearbook - 2005
- Comparison of budget payment results in the area is shown in the following table:
Table 2.16. Budget payment results of FDI enterprises in the province
Quang Ninh
Unit: Million VND
Year
Target
2000 | 2001 | 2002 | 2003 | 2004 | 2005 | |
FDI | 145,850 | 130,740 | 187,500 | 226,090 | 300,630 | 360,750 |
The whole province | 2,460,223 | 2,527,136 | 3,088,722 | 3,311,958 | 3,637,674 | 4,075,000 |
FDI/ | 5.92 % | 5.17% | 6.07% | 6.83% | 8.26% | 8.85% |
Source: Quang Ninh Statistical Yearbook -2005
FDI activities have gradually exploited the comparative advantages of each locality, attracted a large number of workers, and contributed positively to the socio-economic development process. Investment activities of FDI enterprises in many localities have created a strong technical infrastructure to meet the economic development requirements of the locality.
The activities of FDI enterprises in the province have contributed to diversifying economic types and services.
Foreign-invested projects have contributed to diversifying products, creating many new products with high competitiveness in the market (oil, flour, noodles, pearls , etc.) , contributing to creating new urban areas, landscapes, and services for tourism.
With a suitable industry structure, foreign direct investment projects have had positive impacts on the economic restructuring of the province and improved the efficiency of economic growth based on the effective exploitation of Quang Ninh's comparative advantages.
The highlight of Quang Ninh's economic structure is the advantage of the tourism and service industry. One of the economic development goals of the province is to gradually increase the proportion of the industrial sector.
During the period 2000-2005, Quang Ninh province achieved the set target of economic restructuring towards industrialization and modernization. This restructuring is the result of changes in the correlation of growth rates between sectors in the economy, in which the absolute value of GDP of all sectors increased. The economic sector with foreign direct investment has contributed significantly to that transformation.
Furthermore, foreign direct investment projects have been directed towards tourism - service and industrial sectors, in which Quang Ninh has advantages such as natural advantages in tourism resources, seafood processing, construction materials manufacturing industry... Exploiting the province's comparative advantages is an important premise to improve the efficiency of growth.
In the context that most of the city's enterprises do not have enough financial capacity to replace outdated equipment, foreign direct investment has created a breakthrough, accelerating the process of technological innovation and modernizing the production of Quang Ninh province. This is the premise to create competitiveness for domestic goods by improving quality and reducing product costs. That is very
important in the context of the Vietnam-US Trade Agreement being signed and Vietnam preparing to join the WTO.
With the above results, it can be affirmed that, in recent times, Quang Ninh has been very successful in attracting foreign direct investment to serve the industrialization and modernization of the province. This success is the result of the dynamism and sensitivity of domestic enterprises in finding joint venture partners with the ability to contribute large capital and the authorities in managing technology transfer activities through foreign direct investment.
Foreign direct investment creates more jobs, increases workers' income, and improves the quality of the workforce.
An important condition to improve people's lives is to create more jobs and stable income for workers. Therefore, the issue of job creation is of great significance to the economic development of Quang Ninh province. The foreign-invested economic sector plays an active role in implementing this task.
By the end of 2005, foreign-invested enterprises in Quang Ninh had created about 11,500 direct jobs and tens of thousands of indirect jobs in related manufacturing and service sectors. This sector has contributed significantly to job creation and increased income for workers. Furthermore, foreign-invested enterprises have also attracted a large number of workers from rural areas, contributing to the shift in the agricultural-rural labor structure.
Through activities at foreign direct investment facilities, Vietnamese cadres and workers have been trained or retrained, have access to industrial style and high professional qualifications. This is an opportunity to improve the quality of Quang Ninh's workforce.
Foreign direct investment activities in Quang Ninh have expanded export markets and replaced imports.
If in 2000 foreign invested enterprises only achieved
37,000,000 USD in export turnover, in 2005 it reached 90,000,000 USD. In the coming years, many new enterprises will come into operation, and existing enterprises will