Update: 10:34 | 13/02/2021
(BGO) - Over the past few years, Bac Giang province has developed rapidly and gradually became a growth pole in the northeastern region of the country. In 2020, it led the nation in the average GRDP growth rate. The province is always busy like a great construction site, with layers of factories and production facilities sprung up.
There were many reasons for these results, but a very important factor was the province's persistence in attracting investment towards sustainable development. The provincial leaders have directed the implementation with the motto "less land, less labor and less environmental pollution; high investment rate, high technology and high budget contribution”. The province's point of view is to not allow investors to benefit through transfer pricing, while contributing very little to the locality, hindering the development of the province.
A production line at Deyang Hanoi Company Limited (Dong Dinh Industrial Park in Tan Yen district). Photo: Viet Hung
In order to lure high-quality and strategic investors, Bac Giang has focused on improving its business and investment environment. The province has set aside a huge sum of capital to develop transport infrastructure and infrastructure of industrial zones and clusters; and support site clearance for key projects. The provincial leaders have drastically directed the implementation of solutions to upgrade the Provincial Competitiveness Index.
In the 2016-2020 period, Bac Giang attracted nearly 6 billion USD in investment, 2.1 times more than the previous period. Particularly in 2020, despite the impact of the Covid-19 pandemic, the province still lured more than 1.25 billion USD. It now has more than 1,770 valid projects with a total registered capital of about 10.1 billion USD and continuously ranks among the top 10 provinces in investment attraction in the country.
Besides the impressive achievements, many experts still said that the technology content in investment projects in Bac Giang is not high (production lines imported from developed countries such as G7 account for only 15 percent), with low value added and activities mainly involving in processing and assembling. Bac Giang still lacks "eagles", which are big projects that can completely change the development of the province (in fact, nearly half of FDI projects have capital size of below 2 million USD). Businesses’ budget contributions are not commensurate with their investment scales. For example, in 2019, the budget payment by projects in the province only reached more than 2.24 trillion VND (97.25 million USD), accounting for 18.6 percent of the locality’s total budget revenue.
Van Trung Industrial Park. Photo: Viet Hung
In 2021, the Covid-19 pandemic is still raging around the world, greatly affecting investment attraction and trade exchange. However, Bac Giang is also benefiting from the policies of the US and Japan to move factories from China to other countries, including Vietnam, the EU-Vietnam Free Trade Agreement (EVFTA) officially taking effect, and the signing of the Regional Comprehensive Economic Partnership (RCEP) by 10 ASEAN member states and five partner countries (Australia, China, Japan, the Republic of Korea and New Zealand). It is expected that there will be a new wave of investment in Vietnam and an opportunity for the province to welcome more "eagles" to nest.
In order to seize opportunities and attract investment for sustainable development in the context of the Covid-19 epidemic, the province is focusing on a number of solutions and initiatives. They include strictly complying with the guiding documents of the Government and the Prime Minister in realizing the "dual goal" of both repelling the pandemic and boosting economic development. The province will continue to promote planning of and investment in the construction of industrial zones and industrial clusters. In the immediate future, it will plan and arrange a land fund of about 10,000 hectares for industrial development and gather all resources to build essential socio-economic infrastructure in service of investment attraction. The province intends to organize auctions of land use rights and biddings to find qualified investors, while improving transparency and efficiency in land use.
With the right viewpoint and solutions as well as the consistency in direction and precious experience in attracting investment over the years, it is hoped that Bac Giang will continue to reap new successes and welcome more " eagles" to nest.