Foreign investment leverage crucial for Quang Ninh’s goals

Quang Ninh has a politically and economically strategic position with unique potential and competitive advantages when it comes to attracting foreign direct investment, being the only municipality of Vietnam with both a land and maritime border with China, including three border gates.

In recent years, the province has been well known for its rapid development and its system of economic and social facilities, particularly its transport connections to highways, airports, and sea ports.

Quang Ninh has 176km of highways (accounting for 16.8 per cent of the country’s total), and the travel time from Hanoi to Halong is only 90 minutes, while it takes only three hours to travel to Mong Cai city.

Quang Ninh Economic Zones Management Authority, since the beginning of the year, has contacted and cooperated with more than 20 different foreign financiers to discuss investments into the province’s industrial zones (IZs) and economic zones (EZs). They have praised the commercial environment of the province, and most have committed to exploring options to conduct more projects here.

During a conference for investment development earlier this year, there was a recorded commitment of more than $1.7 billion of funding into Quang Ninh. Specifically, Stavian Quang Yen Chemical Company has committed to investing in North Tien Phong IZ, to commence its project of polypropylene production, and has pumped in about $1.5 billion; Vietnam Investment Q Ltd. has committed to holding 7.6 hectares of land in North Tien Phong IZ, to develop warehouses and manufacturing factories, with total funding of about $23.9 million.

Bruno Jaspaert, general director of DEEP C Industrial Zones, said, “Like other investors, we are very cautious when picking a target, and Quang Ninh has many advantages as a destination for foreign investors. Businesses can easily access high-quality and well-trained labour resources with skills and experiences. Besides that, Quang Ninh has an abundance of real estate and many inviting policies to support businesses.”

Positive leverage

Last year, the total foreign direct investment (FDI) registered into all IZs and EZs across the province exceeded $1 billion, a more than two-fold increase compared to 2020. Quang Ninh has awarded certificates for eight foreign-invested projects, with registered funding of over $960 million, while also awarding 17 adjusted certificates for other projects, at a total of around $112 million.

Exemplary projects include Jinko Solar PV Vietnam’s optical cells projects at Song Khoai IZ, with the total investment of over $900 million, among others.

Nguyen Van Nhan, director of Amata Halong, which is the investor of Song Khoai IZ, said that Quang Ninh has had many breakthroughs in terms of planning, with modern, standardised investment in facilities. “This is also the main reason Jinko Solar continuously invests in this IZ,” Nhan said.

During a conference for Japanese investors in Quang Ninh in December 2021, Soichi Inoeue from Marubeni Vietnam Co. Ltd. said, “The attitude of the authority, the transparency and clarity of policies, and the speed of the general process, along with the increasingly standardised facilities, are the magnets that attract investors into Quang Ninh.”

In 2021 alone, foreign-invested enterprises (FIEs) in Quang Ninh spent $423 million improving facilities and technologies. Specifically, there have been several large-scale foreign-led projects in the field of manufacturing and electronic technologies that have begun operation, such as Foxconn’s S-Vietnam factory, and Vina’s Bumjin Electronics factory, among others.

In 2021, revenue from companies and investors in Quang Ninh reached $1.6 billion, total export value reached $1.5 billion, and total import value exceeded $1 billion. The province contributed nearly $30.43 million to the national budget and created 34,000 jobs.

In the first nine months of 2022, the total non-budget investment of Quang Ninh has reached $1.9 billion. FIEs contributed more than $55.21 million to the national budget, or 113 per cent of the 2021 level.

FDI has contributed to the transformation of technologies in Quang Ninh and the development of important economies of the province, such as food processing, coal mining, tungsten manufacturing, rate metal mining, and electricity manufacturing, with modern managerial styles and systems.

Wider funding

Being patient with its target of transforming from a brown to green development model, the province has a clear direction when it comes to FDI attraction, with priorities in efficiency and sustainability, projects using environment-friendly technologies, and sustainable use of land and labour.

In addition, Quang Ninh plans to promote its central IZs of Quang Yen, Van Don, and Mong Cai to be leaders in development momentum. Hence, the province will focus on upscaling investments in these three IZs and give special priority to 16 new IZs planned for 10 out of 13 municipalities.

Nguyen Xuan Ky, Secretary of Quang Ninh Party Committee, said, “The province is now making great efforts to improve its business and investment climate. It always considers the successes of investors in the province as those of the province itself. Quang Ninh has identified its motto as partnership and service to businesses and others. It welcomes all forms of cooperation, ensuring security and safety, and providing the best service and conditions for businesses to invest.”

Cao Tuong Huy, Deputy Secretary of Quang Ninh Party Committee, said, “We have to attract multinational businesses with leading roles in the fields that Quang Ninh has competitive advantages, namely tourism, service, manufacturing, supporting technologies, high-tech fields, smart technologies, marine economy, logistics, ports and port service, and sustainable energy.

At present, Quang Ninh has 153 foreign-invested projects with over $10.33 billion in the total registered investment capital. In the IZs and EZs alone, there are a total of 91 valid projects worth over $4.36 billion, and 62 projects outside IZs and EZs registered with over $5.95 billion.”

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