Results Achieved In Attracting FDI Into Ha Giang Province

Upgrading the road network is the first step in promoting foreign investment. These routes have been and are being gradually upgraded, especially key routes to facilitate the socio-economic development of the province. The development orientation is to complete the entire beltway 1 on the basis of the national highway system 4 (4C, 4D, 4E), national highway 34; build some additional sections to continuously connect the routes; complete beltway 2 along the current national highway 279.

The province has completed the border corridor route according to the border road project being implemented by the Ministry of National Defense, building two new sections on the belt road system 1, including the section connecting Bao Lac (Cao Bang) to Meo Vac (Ha Giang) and the section from Ha Giang to Lai Chau. In addition, the province has also upgraded and renovated National Highway 2 by upgrading and extending Provincial Road 176 from Tuyen Quang Province to Bac Me to connect between Belt Road 2 and Belt Road 1, upgrading Provincial Road 176 from Bac Me District, connecting highland residential areas through Yen Minh, Meo Vac and then merging with the border corridor; upgrading Provincial Road 178 connecting the belt road. Increasing the number of roads to the border and upgrading the technical level associated with the planning of new rural construction, planning of the arrangement of residential areas, the system of border gates, border crossing areas (openings), border markets, and border stations. Ensure smooth traffic during the rainy season and calculate the connection between the border patrol road and the border corridor; build a network of foreign bus stations at the regional, provincial and district levels. Prioritize the completion of planning and investment in building the traffic system in urban areas, creating conditions for urban areas to develop rapidly, promoting the role of the core and locomotive in the socio-economic development of the region. Establish a project to build a new domestic airport in Tan Quang commune, Bac Quang district.

Along with upgrading the road system is upgrading the power supply network. The orientation is to complete and put into use 44 hydroelectric plants by 2020, maintain stable operation of 70 hydroelectric plants (26 plants before 2010 and 44 plants completed after 2010). Industrial zones have their own transformer stations. Enterprises use electricity according to their needs. Electricity prices are regulated by the State. The water supply and drainage network, wastewater and waste treatment are consolidated and upgraded. Regarding the abundant water supply, the groundwater potential of Ha Giang province is calculated by reserves.

The static water volume is 4285x10 6 m 3 /day, the dynamic volume is 1,113,088 m 3 /day. The surface water source of Ha Giang is relatively large with a total annual flow of 5x10 8 m 3 . The total rainfall falling on the entire province in a year is very large, approximately: 2478mm x 7884 km 2 = 20 x10 9 m 3 . Therefore, to drain water quickly, avoid local flooding, and ensure environmental sanitation, Ha Giang has a network of construction sewers scattered according to the natural terrain, evenly distributed over the entire urban construction area, in the city there are about 100 - 140 m of sewers / ha of construction; in towns there are about 80 - 100 m of sewers / ha of construction. Domestic wastewater in the city and towns must be treated before being discharged into the source. Domestic wastewater in commune centers and rural residential areas is treated by biological self-cleaning method in ponds. Wastewater from industrial clusters (scattered) and factories is treated separately in the industrial zones and clusters before being discharged into receiving sources. In addition, the postal service network has been widely developed throughout the province, meeting postal services.

2.2.2.9. Environmental control and protection policy

The management board of industrial parks, export processing zones, and high-tech zones shall coordinate with the state management agency on environmental protection in the area to organize inspections of environmental protection activities; report on environmental protection activities in industrial parks, export processing zones, and high-tech zones according to the provisions of law. The management board of industrial parks, export processing zones, and high-tech zones must have a specialized department on environmental protection. Investors in the construction and business of infrastructure in industrial parks, export processing zones, and high-tech zones must ensure the following requirements: Planning of functional areas and types of activities must be consistent with environmental protection activities; Investing in a centralized wastewater collection and treatment system that meets environmental technical standards and has an automatic, continuous wastewater monitoring system; having wastewater flow measurement equipment; Arranging appropriate specialized departments to perform environmental protection tasks. The People's Committee at district level is responsible for: Inspecting and examining the development and implementation of environmental protection plans in industrial clusters, concentrated business and service zones; Reporting to competent state agencies on environmental protection work in industrial clusters, concentrated business and service zones.

Chapter 2 Summary

Ha Giang's policy on attracting investment is very specific as mentioned above. The issuance of mechanisms, preferential investment policies and support measures on infrastructure and the active implementation of administrative procedure reform, investment attraction, and increased direct exchanges and dialogues with enterprises have shown to be quite positive and proactive. Thanks to that, in addition to state investment capital, the province has attracted a large amount of capital from foreign investment enterprises.

Objectively speaking, FDI activities are a relatively new field for Ha Giang, so in recent times, the organization and management of the state in attracting and using FDI capital has had many limitations. In the context of fierce competition in attracting FDI capital and the complexity of diversifying foreign investment forms, the role of foreign investment management has been constantly enhanced to create a favorable environment for attracting this capital source for socio-economic development of the country as well as Ha Giang, while limiting the risks caused by foreign direct investment activities. To effectively promote the mechanisms and policies that have been issued, Ha Giang still has a lot of work to do, especially in the implementation stage.

Chapter 3

RESULTS OF FOREIGN DIRECT CAPITAL ATTRACTION AND ITS IMPACT ON HA GIANG PROVINCE (1996 - 2016)

3.1. Results achieved in attracting FDI to Ha Giang province

3.1.1. Investment capital

In recent times, along with the whole country, Ha Giang province has faced many difficulties such as complicated weather conditions, having to concentrate large capital sources to resolve outstanding construction debts of previous years, especially due to the negative impact of the financial crisis and global economic recession. However, with the attention and support of the Government and ministries, branches and the initiative and creativity of the Provincial Party Committee, Party committees at all levels, authorities and people of all ethnic groups in the province have united and made efforts to overcome difficulties, so Ha Giang has achieved positive results in socio-economic development. Since 2001, Ha Giang province has had foreign investors. From that time to 2016, the province has granted investment certificates to 21 foreign-invested projects. The total registered investment capital according to the Investment Certificate is 45.6 million USD (Table 3.1).

Table 3.1. Foreign investment attraction situation in Ha Giang (1996 - 2016)

Unit: million USD


Year

Total number of projects

Total registered capital

Total real capital

presently

2001 - 2005

5

6.9

4.2

2006 - 2010

7

17.9

11.05

2011 - 2016

9

20.8

16.46

Total

21

45.6

31.71

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Results Achieved In Attracting FDI Into Ha Giang Province

Source: Department of Planning and Investment of Ha Giang province

Looking at the table above, we can see that the investment attraction speed of Ha Giang province has gradually increased over the periods. In the 3 years 2003 - 2005 alone, there were 5 licensed projects with a total registered capital of more than 6.9 million USD, but the registered capital of each year fluctuated unevenly (in 2004 it was 150% higher than in 2003, but in 2005 it was

(no projects were attracted), investment projects are mainly small and medium-sized projects.

In the period 2006 - 2010, FDI capital inflows into Ha Giang began to show signs of slow recovery. Although the number of investment projects increased and decreased unevenly between years, in general, the total number of investment projects was 7, 1.4 times higher than in the period 2003 - 2005. The total newly registered capital was 17.9 million USD, 2.6 times higher than in the period 2003 - 2005. In 2006, there were no registered projects, but in 2007, the newly registered capital reached 14 million USD (4 projects) and this capital source increased and decreased unsteadily over the years. This shows that the province's conditions and attraction policies during this period have not really attracted investors.

Table 3.2. Comparison of FDI investment in Ha Giang and some localities

(Projects valid as of December 31, 2008)


TT

Local

Project Number

Registered investment capital

USD

Charter capital

(USD)

II

Northeast

342

2,592,565,079

1,093,582,149

1

Quang Ninh

105

1,151,665,685

465,740,872

2

Phu Tho

50

354,117,987

194,080,290

3

Lao Cai

35

317,734,147

110,807,095

4

Bac Giang

59

247,555,697

103,566,320

5

Thai Nguyen

24

224,604,472

100,177,540

6

Lang Son

30

113,505,102

53,522,784

7

Tuyen Quang

7

110,660,322

20,500,000

8

Cao Bang

12

27,150,812

22,270,000

9

Yen Bai

10

22,915,188

9,729,581

10

Bac Kan

6

17,572,667

8,104,667

11

Ha Giang

4

5,083,000

5,083,000

III

Northwest

37

201,391,891

55,527,210

1

Son La

8

112,620,000

15,272,000

2

Peace

25

84,642,891

37,126,210

3

Lai Chau

3

4,000,000

3,000,000

4

Dien Bien

1

129,000

129,000


National total

10,409

164,679,955,652

55,399,280,722

Source: Foreign Investment Agency - Ministry of Planning and Investment

In the period of 2011 - 2016, newly registered capital reached 20.8 million USD, exceeding 16% compared to the period of 2006 - 2010. In general, in the 6 years of 2011 - 2016, newly registered foreign investment capital increased and decreased unevenly over the years, but in general, if compared by period, it increased, the later period was higher than the previous period, but most of the projects were medium and small scale. According to the Department of Planning and Investment, in the period of 2011 - 2016, Ha Giang attracted 20.8 million USD of registered FDI capital, with the realized capital reaching 16.46 million USD, equal to 79.1% of the registered capital . In the context of the global financial and economic crisis that has not yet recovered, the disbursement results of the above FDI capital are a great success for Ha Giang.

3.1.2. Investment field

In the period 1996 - 2016, the industry structure of foreign-invested projects registered for investment in the province mainly focused on 4 areas: industry, tourism hotels, mineral exploitation and other service activities.

Table 3.3. Industry structure attracting FDI in Ha Giang

Unit: million USD



Industry

Project Number

Total registered capital

Total real capital

presently

Reserve number

sentence

(%)

Total capital

register

(%)

Total capital

perform

Proportion

(%)

Industry and construction

4

19.05

6

13.16

4.03

12.71

Hotel, travel

6

28.57

9.1

19.96

6.39

20.15

Mineral exploitation

8

38.10

18.7

41.01

12.92

40.74

Other services

3

14.29

11.8

25.88

8.37

26.40

Total

21

100

45.6

100

31.71

100

Source: Ha Giang Department of Planning and Investment

Industry and construction sector : In the period of 1996 - 2016, the province attracted 21 projects, including 4 projects in the construction industry sector with a total registered capital of 6 million USD, accounting for 19.05% of the number of projects and 13.16% of the registered investment capital. Among the projects attracting foreign investment in the province, there is a project to exploit and process lead and zinc minerals by Chung Thao Company, Yunnan Province (China), in cooperation with Ha Giang Mineral Mechanical Joint Stock Company (Vietnam), with an investment capital of 1 million USD (equivalent to 15.7 billion VND) that has come into operation and brought about efficiency that is assessed as promising.

good hope. This project has basically completed investment, exploited to the fullest, solved many economic and social problems for remote communes such as Minh Son commune.

Other key projects of the province such as Binh Vang Industrial Park and industrial clusters have been decided to be established (Nam Quang, Thuan Hoa, Minh Son 1, Tung Ba, Minh Son 2). Up to now, Binh Vang Industrial Park is the only industrial park in Ha Giang that has come into operation. Binh Vang Industrial Park was established in 2006 according to Decision No. 1107/QD-TTg dated August 21, 2006 of the Prime Minister on approving the planning for the development of industrial parks in Vietnam until 2015 and orientation to 2020. In the province, there are 43 hydropower plant projects approved for investment by the Provincial People's Committee, of which 19 projects were granted Investment Certificates with the participation of foreign investors such as the project to build a solid waste treatment and landfill area in Ha Giang city, Thai An hydropower plant, Thanh Thuy 2, Song Chung, Bat Dai Son, Nam Ly 1 with a total capacity of power plants reaching 123 MW.

However, there are still some construction items of poor quality, unsafety and not ensuring aesthetics; the initial investment volume of the project is spread out, so the annual capital allocation is lower than the total estimate, leading to slow construction progress, and the capital allocation for settlement of projects is not timely... This shows that the industrial and construction sector is not the province's strength, so it has not attracted many projects from foreign investors.

Hotel and tourism sector: In the period of 1996 - 2016, the province attracted 6 projects in the tourism sector with a total registered capital of 9.1 million USD, accounting for 28.57% of the number of projects and 19.96% of the total registered capital. Although in the period of 2003 - 2005 there were no registered projects in the hotel and tourism sector, in the period of 2006 - 2010 the province attracted 2 investment projects in this sector and in the period of 2011 - 2016 the number of registered projects was 4, an increase of 200% compared to the previous period [39; p.2]. Some notable projects that have been invested with FDI capital include: Quan Ba ​​Heaven's Gate rest stop; Ma Pi Leng - Meo Vac rest stop; Deo Gio - Xin Man rest stop. Some private enterprises have also boldly invested and put the projects into use.

such as Hoa Cuong hotel, stone plateau in Meo Vac and Dong Van, Thach Lam Vien eco-tourism area in the town.

This shows that the structure of foreign investment capital in Ha Giang has shifted positively to the hotel and tourism sector. This is a shift in the right direction according to the strengths and attraction policies of the locality. When the province has tourist areas and relic sites with unique and specific features. Notably, the Thanh Thuy trade - service business project is a joint venture with ENR WASTETECHNOLOGYSDN. BHD Company of Malaysia, with a registered capital of 10 million USD. Up to now, this enterprise is urgently completing project procedures to start construction of a 4-star hotel, 80 rooms according to international standards and Thanh Thuy commercial center.

Mineral exploitation: Mineral exploitation is considered the province's strength. In the period of 1996 - 2016, the province attracted 8 projects in this field with a total registered capital of 18.7 million USD, accounting for 38.1% of the total number of projects and 41.01% of the registered capital. Investment projects in this field are quite suitable for the current situation of the province. Ha Giang is considered a province with great potential for minerals with nearly 28 different types. The province has a mineral planning until 2020 with 88 approved mines and mining points. However, the current exploitation status of the province is only in the early stages, there are not many large-scale exploitation technologies with advanced technology. This is a feature for the province to have a policy to attract new projects to exploit more effectively the resources considered the potential and strength of the province.

Other service activities: During the 20-year period, the province has attracted a total of 3 projects in the other service sector with a total registered capital of 11.8 million USD, accounting for 14.29% of the number of projects and 25.88% of the total registered capital. Although the number of investment projects in this sector is still modest, the total registered capital for this sector is quite high, ranking second only to the mineral exploitation sector. At the same time, the structure of foreign direct investment capital in Ha Giang is shifting positively to the service sector. This is the newest and most obvious feature of the FDI attraction situation in Ha Giang in recent years, when in the period from 1996 - 2010 there were still no registered projects in this sector, but in the period from 2011 - 2016 there were 3 projects registered for implementation. This shows that the province's socio-economy has also developed significantly, leading to the development of other services.

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