Mutual Understanding for Mutual Development
Business environment gets friendlier
Nghe An is the largest province in the country by area. It has sea, deltas, forests, mountains and national borders. With some 1.8 million people at working age, the province is the education - training centre for the northern central region. Traffic system in Nghe An is constituted by overland, airway, seaway, inland waterway and railway routes. The province is an important traffic hub of the northern central region, a trade transit point for northern and southern provinces, and an important component of the East-West Economic Corridor.
The post and telecommunication infrastructure and network, with a full range of services, can provide immediate domestic and international information exchange and communication. Most landline and mobile communication services are now available in the province, with the high-quality coverage in all districts, towns and cities. This means that Nghe An province has all infrastructure investment for easy investment attraction.
The business environment in the province is increasingly friendly, open and transparent. Provincial leaders constantly urge functional departments and organs to step up public administration reform and provide best conditions for enterprises. Early in 2013, the People’s Committee of Nghe An province announced its investment promotion plan for 2013, in which the province affirmed to continue with strong efforts for better and more convenient investment environment for enterprises. The Provincial People’s Committee is also focusing on upgrading technical infrastructure like infrastructure in industrial parks, Cua Lo seaport, Thanh Thuy international border gate and Vinh airport.
According to the provincial competitiveness index (PCI) report, which assesses local business environment, the investment and business environment in Nghe An province is getting better. PCI rose by two steps in 2010, five steps to the group of good localities in 2011, and three steps to reach the 46th position out of 63 provinces and cities surveyed in 2012, with 54.36 points.
Attractive to South Korean investors because of future value
The investor meeting in early 2009 was considered a landmark breakthrough in investment promotion in Nghe An. Since then, the province has attracted 335 investment projects with a total registered capital of VND107,117 billion (US$5 billion), of which 313 projects worth VND80,690 were invested by local investors and 22 projects with US$1,248 million were invested by foreign investors from 10 countries and territories in the world. Licensed projects generally match the province’s development objectives.
Especially, Nghe An province has to date drawn 11 projects from South Korea with a total registered value of US$60.97 million, which are now employing more than 10,000 local workers. South Korean companies expand their investment in Nghe An because they see current potential and future values as well.
Vietnam and South Korea have many similarities in both history and culture. Cultural similarity and closeness promote mutual understanding.
But, to do a long-term business, South Korean investors are recommended to learn about Vietnamese laws, customs, traditions, culture and climate when they work with the province. Understanding the characters of local people will help investors to have proper attitudes and behaviours when they contact local labourers.
