Actively Changing for Better Investment Promotion

To have good investment attraction outcomes, in addition to efforts to invest in synchronous infrastructure system, accelerate administrative reform and build an open and transparent investment climate, Can Tho City has actively reformed investment promotion and attraction activities to match new conditions and developments. We have an interview with Mr Nguyen Khanh Tung, Director of Can Tho Investment and Trade Promotion and Exhibition Centre on this issue. Hoang Lam reports.

Could you please introduce new activities in investment promotion and attraction and their outcomes in Can Tho City?
In the past, investment promotion activities were launched spontaneously from locality to locality. Localities carried out their investment promotion events on their own and sometimes concurred with others, resulting in low efficiency.

After the Prime Minister promulgated Decision 03/2014/QD-TTg dated January 14, 2014 on State management on investment promotion, Can Tho City and other localities prepared annual plans based on the guidance of the Ministry of Planning and Investment. After the ministry has an agreement, the Municipal People’s Committee signs a decision to issue annual investment promotion plan. As a result, investment promotion is more focused and more effective.

Reportedly, Can Tho City’s investment promotion orientation has changed dramatically in recent years. Could you elaborate on this change?
Compared with previous periods, Can Tho City has had a great mindset change in investment attraction and promotion. Instead of drawing any project approachable, the city has paid a greater attention to project quality and actively choose projects for priority areas towards sustainable development. The city gives priority to high-tech, environment-friendly projects which manufacture highly competitive products and match economic and sector development plans. The city has also gradually shifted from attracting foreign projects using low labour costs to using high-quality human resources. Particularly, the city has focused on strengthening supports for enterprises and investors in a more practical manner to build up investor confidence.

In order to make a big change in investment attraction, engaging external resources is very important as this causes major changes in investment landscape and diversifies resources for local construction and development. How has Can Tho City invited investors and drawn more external resources?
In the past years, Can Tho City has capitalised on the central budget invested in general target programmes while also trying to promote internal resources to promote socioeconomic development. However, the city’s investment attraction results are still limited. There is a huge gap between real value and actual demand for investment capital.

To achieve economic growth and development objectives, in addition to internal resources, we need to muster external resources. For that reason, Can Tho City has actively expanded external ties with other nations, particularly signing memorandums of understanding on cooperation with localities with similar characteristics to the city to strengthen effective cooperation in all aspects. The city has actively promoted investment in key markets such as Japan and South Korea with many different methods like establishing Korea - Vietnam Incubator Park (KVIP) and inviting South Korean specialists to advise on investment promotion for the city. In the coming time, Can Tho will establish the Japan Desk Office. Japan Desk will contact and grasp information of Japanese companies active in Can Tho City to work with local authorities to seek appropriate assistance solutions and recommending Japanese companies to explore cooperation and investment opportunities in Can Tho City and Mekong Delta provinces.

What will Can Tho City need to focus on to improve the quality and effectiveness of investment promotion and business support and to professionalise these activities to better serve the business community?
The city needs to have good planning and management and apply open mechanisms to facilitate business performances of investors. Site clearance, land compensation and environmental pollution need to be further cared. Administrative reform should be executed in a comprehensive, open and transparent manner. At the same time, the city neds to develop synchronous and modern infrastructure to woo more investors to help further boost local socioeconomic development.

What solutions will Can Tho City concentrate on to speed up investment promotion and ameliorate the investment environment in the current context of deep international economic integration to attract more investors?
Can Tho City will proactively diversify and promote social resources, select target markets to launch appropriate promotion programmes, and convince current investors to invite new investors to the city. The city will receive and support investors to quickly tackle their emerging problems and develop human resources for future development.

To approach and invite investors, Can Tho City will focus on reviewing and selecting important, feasible projects according to local development plans; step up basic research (market information, partners, foreign policies of Vietnam); strengthen cooperation with domestic and foreign promotion agencies; and establish fine relations with central authorities and other localities in the country.