By the end of October 2023, the index of industrial production of Ba Ria-Vung Tau continues to show impressive growth. The province is implementing various measures to support businesses and attract new investors.
Many policies to support business and attract FDI
The Department of Planning and Investment of Ba Ria-Vung Tau Province at a recent regular meeting of the provincial People’s Committee indicated that foreign direct investment (FDI) in the past 10 months in Ba Ria-Vung Tau has increased by 2.78 times compared to 2022. During this period, the province has attracted 20 FDI projects with total registered capital of over US$751 million, an increase of over US$481 million compared to the same period in 2022.
In order to attract investment, Ba Ria-Vung Tau has issued and implemented various policies to support businesses since the beginning of 2023. Notably, one of these policies is Plan No. 38/KH-UBND (dated March 15, 2023) issued by the provincial People’s Committee on supporting small and medium-sized enterprises in the period 2023 – 2025. The support includes preferential access to credit, tax incentives, and assistance in accessing technology. The Plan also aims to attract investors for innovative startup enterprises, as well as support for digital transformation and market expansion.
Earlier this year, the Chairman of the People’s Committee of Ba Ria-Vung Tau established a special working group to support businesses. This special working group has managed to address businesses’ concerns, providing guidance to expedite the implementation of recommendations from businesses and investors. As of November 28, 2023, the special working group has received 45 proposals from businesses/investors, with 17 proposals already completed, 24 proposals being processed by relevant authorities in the province according to their jurisdiction, expected to be completed in December 2023, and 4 new proposals recently received.
In the coming time, the province will continue to focus on clearing bottlenecks in the mechanism, concentrating on reviewing and simplifying administrative procedures in the investment field to create a more favorable environment for business activities.
In 2023, there have been several large-scale factories contributing to industrial development index of the province. Recently, Viglacera Corporation inaugurated a refractory plant equipped with the world’s most advanced Continua production line by Sacmi (Italy). This plant produces environmentally friendly stone with numerous advantages over natural and artificial stone products, helping to reduce the exploitation of natural resources and contribute to environmental protection.
Local companies record strong growth
The Long Son Petrochemical Complex in Vung Tau City, with investment capital of over US$5 billion, is currently undergoing trial operations and is expected to officially commence commercial operations in 2024. The project is projected to create employment for approximately 1,000 Vietnamese workers and annually contribute US$150 million in taxes to the province.
Recently, Khang Thinh Steel Company (An Ngai Commune, Long Dien District) has received four construction contracts for projects within and outside the province, with a total value of hundreds of billions of Vietnamese dong. With these contracts, the company ensures work for 80 permanent employees from now until the end of the year. “After a period of fluctuations due to the global economic impact, having these contracts demonstrates that the construction and fabrication of steel structures are thriving. This somewhat alleviates our concerns and encourages us to actively seek new contracts,” said Tran Thi Thu Thuy, deputy director of the company.
In mid-September, Alpha ECC South Petroleum Construction Joint Stock Company (Dong Xuyen Industrial Park, Vung Tau City) commenced construction of a project to manufacture equipment for CO2 recovery on a floating production storage and offloading (FPSO) vessel. This equipment, valued at around US$500,000, is designed to recover and transform CO2 gas on the FPSO vessel to reduce emissions into the environment.
The industrial production value (calculated at 2015 constant prices), excluding crude oil and natural gas, in October 2023 was estimated to be over VND37.6 trillion, an increase of 7.64% compared to the previous month and 13.14% versus the same period last year, according to the Department of Industry and Trade. The cumulative value in the first 10 months of 2023 is estimated to be over US$318.3 trillion, an 11.24% increase compared to the same period, surpassing the annual plan set at the beginning of the year by 9.24%. The Industrial Production Index (IIP), including crude oil and natural gas, was expected to increase by 10.24% in October compared to the previous month and 8.83% compared to the same period in 2022, with a cumulative increase of 3.1% for the first 10 months of the year compared to the same period last year.
This growth is attributed to the strong adaptability and robust recovery of industrial companies, particularly those in the textile, leather, and footwear industries, which have received new orders and resumed hiring. The processing and manufacturing industry is experiencing a strong recovery, with steel companies benefiting from additional orders from public investment projects and domestic customers, reducing dependence on exports.
From the beginning of 2023 to October, the industrial sector continued to be a bright spot in the economic and social development of the province. Alongside the efforts of businesses, the provincial government of Ba Ria-Vung Tau consistently supports and collaborates, primarily in terms of policies, to facilitate access to capital for businesses, expedite the disbursement of public investment, and review, cut, and simplify administrative procedures to create the best possible environment for production and business.