Some Experiences in Perfecting the Investment Environment

There is no investment environment without an investor or a business unit.

It can be said that wherever there are production and business activities, there will be an investment environment. The investment environment exists objectively, it creates opportunities for investors but at the same time creates constraints and barriers for them. Only when the investment environment is attractive and open can it attract investment capital and unleash the potential of economic sectors in the whole society. In other words, to create conditions to attract investment, the investment environment must create the most favorable foundations and conditions for investment activities to take place. Therefore, to develop the private economy, attract investment and create conditions for investors to invest with peace of mind, and achieve investment efficiency, perfecting the investment environment is an objective necessity.

At the 11th National Party Congress, the task of national development in 2011-2015 was affirmed as "Continue to improve the investment and business environment, apply diverse and attractive forms of investment attraction to mobilize and effectively use all resources of domestic and foreign economic sectors, promote internal strength, and take advantage of external resources for development". "Perfecting policy mechanisms to strongly develop the private economy to become one of the driving forces of the economy".

Thus, perfecting the investment environment for the development of the private economy is an objective and inevitable requirement in both theory and practice. Perfecting the investment environment for the private economy is also implementing the Party's guidelines and policies for the economy in general and the private economy in particular.

For Tay Ninh, improving the investment environment is becoming more urgent in the general trend of the whole country integrating into the world economy. The investment environment is a top concern for countries including Vietnam. In recent years, Tay Ninh has actively improved the investment environment to attract investment for development in order to bring Tay Ninh out of the poor and difficult provinces in the country. Because when the investment environment is improved, it will attract investors,

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Creating jobs with added value contributes to making Tay Ninh's growth and poverty reduction goals a reality.

With the aim of making a profit, investors will invest capital in production and business with new ideas, with new facilities and those are the factors that make up economic growth. Enterprises are the place that will create about 90% of jobs, the place for people to demonstrate their abilities and qualifications to increase income and improve living standards. Enterprises are the main source of tax revenue for the government, the main factor participating in the process of providing goods in general and public goods for everyone such as training, health, medicine, etc. Thus, enterprises are the main factor, playing a core role in the process of creating a growing and developing economy, but the participation of enterprises in society depends entirely on the investment environment.

Therefore, improving the investment environment is an important task of the province today. At the same time, Tay Ninh province - Svayrieng, Preyveng and Kong Pong Cham provinces of Cambodia agreed to implement a strategy of cooperation and friendship for local socio-economic development, in which the Xa-mat and Moc Bai border gate economic zone is identified as an important center in the economic corridor of the localities. At the same time, according to the Resolution of the 9th Tay Ninh Provincial Party Congress, term 2010-2015, it is proposed to "Strengthen the expansion of foreign relations, economic development cooperation with a number of countries in the world such as Japan, Korea, Thailand..." This is also an opportunity for Tay Ninh to attract the attention of domestic and foreign investors. At the same time, Tay Ninh needs to prepare a good investment environment to successfully carry out the tasks set out in the Resolution of the Provincial Party Congress.

1.4. Some experiences in perfecting the investment environment

1.4.1. Experience of Ho Chi Minh City

Every year, the Department of Planning and Investment coordinates with departments and industrial park management boards to make a list of projects calling for investment for each period.

The Center for Trade and Investment Promotion has built a website on foreign investment to promote the city's investment environment. The city

The city has also completed a website for “business dialogue” to facilitate online exchanges between businesses and departments and agencies. Many seminars and conferences have been organized to introduce the city’s investment environment; leaders of departments and agencies often meet and listen to the wishes of businesses, and acknowledge their comments. Ho Chi Minh City is at the forefront of establishing export processing zones, industrial parks and high-tech zones to create land funds with adequate infrastructure along with a convenient one-stop management mechanism for projects to form and develop.

Regarding administrative procedure reform, the City has implemented many measures to simplify procedures and shorten the time for investment licensing. Online licensing has been implemented since 2004, allowing a member of the Committee and the Director of the Department of Planning and Investment to sign investment certificates for projects under 5 million USD. The City has established an interdisciplinary team to resolve difficulties and problems for investors, with the Department of Planning and Investment as the focal point (Ho Chi Minh City Department of Planning and Investment).

1.4.2. Binh Duong's experience:

Private enterprises in Binh Duong are developing very quickly in quantity and quality, the private economic sector accounts for 50% of the province's GDP.

Binh Duong is a province with an investment environment that is assessed by experts as being the best in the country. From the investor’s perspective, Binh Duong has all the factors of “heavenly time, favorable location, and harmony of people” combined with well-invested industrial infrastructure and the province’s “red carpet” policy, making Binh Duong an ideal destination for investment.

Binh Duong has a good investment environment, especially the infrastructure of large and modern industrial parks. The province has a vision and a reasonable investment plan for infrastructure to fully exploit the advantage of being adjacent to Ho Chi Minh City. The province has created a favorable investment environment for investors through the implementation of a good infrastructure system, meeting the necessary services such as electricity, water, transportation, communication, hotels, hospitals, schools, etc. In addition to investing in infrastructure to serve industrial development, the province also focuses on a number of other policies to continuously improve and perfect the investment environment, such as: administrative procedure reform, supporting industry development, etc. In which

The province's policy of attracting and developing human resources is implemented very scientifically from training to use.

1.4.3. Experience of Da Nang City:

The private sector in Da Nang City has developed rapidly in both quantity and quality. The city's investment environment is increasingly improved and always leads the country's PCI ranking. Da Nang City has developed a project on mechanisms and policies to develop private sector. This is a pioneering work in the country in building a mechanism and policy for private sector development. Support policies have created excitement, aroused the entrepreneurial spirit of enterprises, and encouraged enterprises to boldly invest in Da Nang. The province does not discriminate against investment partners, all investors and businesses with good intentions are given favorable conditions to come to Da Nang to confidently invest in production and business in industries and fields where they have many advantages such as technology, market, price... Da Nang City has implemented many measures to improve the investment environment, remove difficulties for enterprises in the private economic zone, such as: reducing land rent, tax exemption and reduction, reducing prices of many types of services, adding investment incentives for priority areas, improving administrative procedures, amending some policies to facilitate project implementation such as: mortgage of land use rights, site clearance, investment guarantees...

Focus on removing difficulties in the legal framework for investment activities, promulgating regulations on improving administrative procedures in investment licensing, managing the implementation of investment projects, etc. Increase investment to improve infrastructure conditions; improve service quality, management capacity and coordination of authorities at all levels for the private economic zone; expand the authority and responsibility of all levels to promptly resolve difficulties for investors. Along with simplifying administrative procedures at all stages and levels is the public disclosure of processes and time to resolve procedures to create trust for investors.

1.4.4 Lessons learned for improving the investment environment in Tay Ninh province

Through research on the experience of some provinces and cities, it shows that in order to improve the investment environment, Tay Ninh province needs to consider research in determining solutions to improve the investment environment in Tay Ninh province as follows:

- Exploit and use natural resources rationally and effectively.

- Promote infrastructure investment, pay attention to planning industrial parks and clusters.

- Pay attention to attracting and developing the province's human resources scientifically from training to use.

- Promote investment promotion, establish specialized units for investment promotion, accompany businesses, guide, encourage and support businesses.

- Develop appropriate policies to improve the investment environment and develop the private economy.

- Implement administrative procedure reform, implement "one-stop, on-site" management mechanism, shorten the time to resolve business proposals.

CHAPTER 1 SUMMARY

By the method of analysis and synthesis, chapter 1 of the thesis has raised the basic concepts of investment environment, basic concepts of private economy and investment environment to develop private economy; systematized the basic theoretical issues on the content of investment environment for private economy. Affirmed the objective necessity in current conditions to perfect the investment environment to develop private economy.

The thesis has clarified the basic contents of the investment environment in both qualitative and quantitative aspects; the elements that make up the investment environment, the institutions of economic policies that affect the investment environment. At the same time, it identifies the basic indicators for perfecting the investment environment. The role and objective necessity of perfecting the investment environment for the private economy of Tay Ninh province.

The thesis has presented some experiences of developing countries and some provinces and cities showing that to improve the investment environment such as: implementing administrative procedure reform, implementing the "one-stop, on-site" management mechanism, shortening the time to resolve business proposals. Promoting investment in infrastructure, planning industrial parks and clusters. Promoting investment promotion, establishing specialized units for investment promotion, accompanying businesses, guiding, encouraging and supporting businesses. Developing appropriate policies to improve the investment environment, developing the private economy.

Chapter 2

CURRENT STATUS OF PRIVATE ECONOMIC DEVELOPMENT INVESTMENT ENVIRONMENT IN TAY NINH PROVINCE

2.1. Overview of natural, economic and social conditions of Tay Ninh province

2.1.1. Natural conditions

Figure 2.1: Administrative map of Tay Ninh province

2.1.1.1 Location : Tay Ninh is a province in the Southeast region, located in the Southern Key Economic Zone; to the east it borders Binh Duong and Binh Phuoc provinces, to the south it borders Ho Chi Minh City and Long An province, to the west and north it borders the three provinces of Svayrieng, Prayveng and Kongpongcham of Cambodia. Thus, Tay Ninh borders the provinces that are all located in the Southern Key Economic Zone, where the economy is most developed in the country. Tay Ninh is located at the junction between Ho Chi Minh City (the largest economic and commercial center of our country) and the capital Phnom Penh (the largest economic and commercial center of Cambodia), which is a favorable condition for Tay Ninh to exchange goods and develop the economy.

With a short distance from Tan Son Nhat airport, Saigon port... and very close to industrial parks concentrated in Cu Chi - Ho Chi Minh City and Binh Duong, along with advantages in infrastructure, water and road traffic, the province can supplement, support or replace important resources for production and business, capable of attracting domestic and foreign investment.

2.1.1.2 Climate:

Tay Ninh has a terrain sloping in the Northeast - Southwest direction: The North has an average height of 10-15m (especially nearly 10km from Tay Ninh town, there is Ba Den mountain with a height of 986m, the only mountain in the province); the South has a plain terrain with an average height of 3-5m. In general, the terrain is relatively flat, very favorable for the development of agriculture, industry and infrastructure. The climate in Tay Ninh is relatively mild, divided into two distinct seasons, the rainy season and the dry season. The rainy season starts from May to November and the dry season starts from December to April of the following year.

Rainfall in Tay Ninh is quite large, averaging 1,900 - 2,300 mm, unevenly distributed throughout the year. During the rainy season, there are up to 110 - 130 rainy days, accounting for about 85 - 90% of the total annual rainfall. In the dry season, rainfall is lowest in January and February. Uneven rainfall is a major obstacle to production and life.

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