(VOVWORLD) -Ba Ria-Vung Tau province has so far this year attracted 18 new foreign direct investment (FDI) projects, with combined registered capital of more than 1.5 billion USD, a 42-fold increase from last year. The number of operating projects raising their investment capital increased 1.3 folds over the same period. Ba Ria-Vung Tau, for the first time, leads Vietnam in FDI attraction.
 The 5 billion USD petrochemical project of Long Son Petrochemical Company Limited is Thailand’s first and largest project in Vietnam. (Photo: Luu Son) |
Phu My 3 Industrial Park in Phuoc Hoa commune, Ba Ria-Vung Tau province was established in 2018, based on a cooperation agreement between the Governments of Vietnam and Japan.
To date, the only specialized industrial park in Vietnam has attracted 44 investors in heavy industry, chemicals, and downstream petrochemicals from Japan, South Korea, China, and several European Union countries, with a total capital of 3 billion USD.
 Kazama Toshio of the Phu My 3 Industrial Park says Ba Ria-Vung Tau has many advantages to attract foreign investors. (Photo: Luu Son) |
Kazama Toshio, a member of the Board of Directors and Deputy General Director of the Phu My 3, said that in the first five months the park attracted six FDI investors, with a total capital of 500 million USD. Two investors have been licensed and the other four are completing licensing procedures.
Toshio touched upon why Ba Ria-Vung Tau province is attractive to foreign investors, "Vietnam's transportation system is increasingly improving, especially we are expecting for the expressway from Bien Hoa to Vung Tau. This will be completed by the end of 2025."
Other projects like Ben Luc-Long Thanh and Phuoc An bridge are gradually being completed and are expected to be put into operation by the end of next year. These projects will help Phu My 3 not only connect with Ho Chi Minh City, but the Mekong Delta, Dong Nai, and Binh Duong more conveniently, said Kazama Toshio.
Infrastructure has been identified as a key to attracting FDI. Ba Ria-Vung Tau’s administration has promoted inter-provincial and inter-regional transportation links.
Last year, construction began on three large projects – Bien Hoa-Vung Tau expressway, Phuoc An bridge, and repair and expansion of the Vung Tau-Binh Thuan coastal road, known as Road 994.
Nguyen Van Tham, Chairman of Phu My town’s People's Committee, said that to serve the Cai Mep-Thi Vai port area, a road has been built to get connected to Bien Hoa-Vung Tau Expressway.
“HCMC Ring Road 4 has been planned to connect with Dong Nai and the Bien Hoa-Vung Tau Expressway. The connected infrastructure system will make businesses feel secure about investing,” said Tham.
In addition to a developed transportation infrastructure system and a favorable location, many FDI investors have chosen Ba Ria-Vung Tau because of an investment environment in which the local government is attentive to investors.
According to Chansak Chirawatpongsa, Director of Long Son Petrochemical Company Limited (LSP), the company's petrochemical project, Thailand’s first and largest project in Vietnam, will operate at full capacity in the third quarter of this year.
The project has a total investment of 5 billion USD, one-third of Thailand’s total investment capital in Vietnam. Since its first operations in Vietnam in 2018, LSP has consistently received strong support in administrative procedures, land, and tax policies from local administrations, said Chirawatpongsa.
“Ba Ria-Vung Tau’s administrative agency has consistently demonstrated efficiency and effectiveness in supporting foreign investors. They’ve worked collaboratively with investors to understand investors and support us a lot,” Chirawatpongsa noted.
Since announcing its provincial planning until 2030 with a vision to 2050 last December, Ba Ria-Vung Tau has outlined realization projects, established a list of public and off-budget investment projects, and introduced investment locations in industry, seaports, logistics, urban areas, and tourism services.
Le Ngoc Linh, Director of the provincial Planning and Investment Department, said the local administration has paid special attention to administrative reform and digital transformation toward the goals of a digital government, a digital economy, and a digital society in line with Party and State policies.
As a result, the provincial competitiveness index has increased and other indexes have risen to the top, said Linh.
“Ba Ria-Vung Tau aims at large-scale projects with modern, high-tech, environment-friendly, and less labor-intensive technology,” Linh explained, adding, “The provincial administration works hard to improve the investment and business environment and stand side by side with domestic and foreign businesses to ensure that businesses make the most of their investments.”
Ba Ria-Vung Tau’s efforts to boost administrative reforms, improve the investment environment, and accelerate transportation projects have paid off as the province lead Vietnam in FDI capital attraction in the first five months of this year. It is creating a foundation for the locality to become a key driver of the southeast region and a national marine economy hub.