In recent years, localities have been advised to build infrastructure efficiently and on schedule while seeking ways to mobilize investment capital in the field. The foreign direct investment (FDI) in manufacturing alone made up over 90 percent of the country’s total FDI. By 2014, industrial parks nationwide received 5,573 FDI projects with a total registered capital of 85.5 billion USD with as much as 49 billion USD disbursed. Meanwhile, coastal and border economic zones housed only 70 FDI projects worth over 700 million USD. Limitations in infrastructure, higher production cost or unattractive business environment are cited as reason. But how to eliminate poorly performing industrial and economic zones, while improving the operational efficiency of invested infrastructure and increase the competitiveness of sectors and zones? This is a big question that localities alone can not find out the answer to. They need a consistent investment strategy from the Central government.
Recently, the Prime Minister has decided to increase investment on eight groups of key coastal economic zones nationwide. These economic zones will receive investments sourced from the State’s coffer for further development during 2016-2020.
List of key coastal economic zones includes Chu Lai and Dung Quat in the central provinces of Quang Nam and Quang Ngai province; Dinh Vu-Cat Hai in the northern port city of Hai Phong; Nghi Son in central Thanh Hoa province; Phu Quoc in southern Kien Giang province; Vung Ang in central Ha Tinh province; South Phu Yen in central Phu Yen province; Van Don in northern Quang Ninh province; and Dinh An in southern Tra Vinh province.
The beneficiaries will receive 70 percent of yearly investments for coastal economic zones in the next five years. During 2016-2017, priorities will be given to important technical and social infrastructure of the economic zones in a bid to meet requirements of major projects. But South Phu Yen, Van Don and Dinh An economic zones will be the focus on the next three years.
Ministry of Planning and Investment will coordinate with the Ministry of Finance to devise the capital allocation plan and build the capital mobilization mechanism; inspect the implementation of the plan before making reports to the Prime Minister on problems and solutions for their task in reality.
Municipal and provincial People’s Committees and management boards of the economic zones are responsible for using the budget in line with regulations and ensure the disbursement process.The localities were also urged to take an active part in allocating their own budget and mobilizing investments from other legal sources to develop infrastructure in the coastal economic zones.
