Manufacturing line in Vietnam Stronic company in Dinh Tram industrial zone. Photo: Viet Hung.

Years ago, Bac Giang firms frequently complained of delayed compensation for site clearance and how hard they had to work with local people on the level of compensation themselves. According to the Provincial Competitiveness Index (PCI) 2013 data, businesses waited for up to 228 days to receive land use certificates, which showed a five-fold longer than the regulated period. Many firms found it hard to access land or expand business operation while some even reported that they had to negotiate with tax officials. 

Many of the enterprises had to pay additional unofficial frees and faced amounts of red tape when going through procedures. Up to 80 percent of businesspeople said officials at one-stop shop units were incompetent, unconcerned and inhospitable. Some private investors said local authorities still favoured direct foreign investment (FDI) and State-owned enterprises. Many worried about a lack of support from local authorities even when their superior management agencies already gave the green-light, as well as the cumbersome investment procedure processing process.

If a business is a “fish”, the investment and business environment will be “water”. “Water” is clean, unpolluted, and having a rich source of oxygen and food, “fish” will be healthy and wealthy. An attractive investment environment offers open, transparent and fast administrative procedures; easier access to land, credit and human resources; timely support and synchronous transport, electricity, water and communications infrastructure. In particular, authorities and cadres must also be hospitable and enthusiastic. 

After the Vietnam Chamber of Commerce and Industry (VCCI) announced that Bac Giang’s PCI in 2013 slipped 18 places from 2012, the standing board of the provincial Party Committee on July 4, 2014 issued Directive 14-CT/TU on rectifying the working style and enhancing the responsibility of local officials, cadres and armed forces. At the same time, the provincial People’s Committee issued a plan to improve the PCI for 2015 and beyond. In the plan, local departments, branches and grass-roots authorities were asked to screen each index forming the PCI, and their functions and duties for building detailed plans to fix shortcomings found.

It was noted that the province established a Steering Committee for Investment and Business Support (SCIBS) led by the Chairman of the provincial People’s Committee in a bid to promptly tackle hindrances facing investors. Provincial authorities directed the provincial Department of Planning and Investment to task the SCIBS with working with the VCCI to survey and rank departments, agencies, districts and city in terms of their staff’s service in handling administrative procedures. Periodically, the Chairman of the provincial People’s Committee met business players to listen to their concerns and aspirations and then assigned departments and localities to deal with businesses’ suggestions. After the 18th provincial Party Congress successfully ended, the provincial Party Committee issued Resolution No. 73-NQ/TU on improving the business and investment climate for 2016-2020, which encompassed groups of breakthrough solutions and determination as well. 

Nearly one year since issuance, Resolution No. 73-NQ/TU has been brought to life. Party units at all levels have enhanced the awareness and responsibility of local officials and cadres for improving the business and investment climate. The provincial People’s Committee called for overlapping in planning to be tackled. Within three months, the public administrative centre was built and put into operation, one-stop shop units of provincial departments and branches were converged in a designated place, and one-stop shop units in districts and cities were strengthened. Sectors and branches have focused resources and investment to create a breakthrough in infrastructure construction. The provincial People’s Committee instructed departments and sectors to consult the development of investment facilitation mechanisms and policies targeting tourist areas, seaports, inland wharfs, high-tech agriculture and start-ups. 

Such first steps reaped encouraging outcomes, charting a route to promoting start-ups and attracting investment. Last year, nearly 900 new firms were established with a total registered capital of 12 trillion VND (521 million USD), marking a six-fold increase annually. The province attracted in excess of 130 domestic projects worth around 12.5 trillion VND (543 million USD), 51 foreign-invested projects worth about 1 billion USD, up four times from 2015. A number of big projects are underway, including the 189 million USD logistics centre, the 100 million USD Trina Solar factory, the Hoa Phu industrial park infrastructure development project worth nearly 2 trillion VND (86.95 million USD), the Tay Yen Tu spiritual – ecological tourism area worth 1.486 trillion VND (64.6 million USD), and the 1 billion USD An Khanh thermal power plant. 

Though businesses and investors remain unhappy with the services offered by some provincial agencies and local administrations, they generally can sense a change in the province’s business and investment climate. Local leaders stay closer to businesses and hold more meetings with investors while suggestions involving land, electricity and water supply, security and order, credit access, housing for workers and overlapping in inspection have been timely tackled. One-stop shop units have utilized information technology, becoming professional and friendly to businesses and investors. Administrative procedures are being quickly processed and civil servants are making efforts to shift their mindset from “management” to “serving”.

Clean “water” helps “fish” to grow healthily and swim fast. We should work together to aid businesses to grow sustainably./.

Nguyen Cuong