Situated in the southern central region and the Central Highlands and blessed with plenty of potential and advantages, Khanh Hoa province has become an attractive destination for investors, including many foreigners. Many large-scale projects significantly help the local social and economic development and positively restructure the local economy.
FDI attraction results
Khanh Hoa province licensed 86 foreign direct investment (FDI) projects worth US$1,228 million in total at the end of 2012, of which 42 projects with a registered investment capital of US$460 million were located outside industrial parks and economic zones, 42 projects worth US$656.3 million were housed in Van Phong Economic Zone, and 22 projects valued at US$111.56 million were licensed into industrial parks. In FDI capital structure, industry and construction sectors accounted for 60.95 percent, followed by services sector with 29.77 percent, and agriculture, forestry and fishery sectors with 9.28 percent.
FDI enterprises generate big export revenues and account for a significant proportion of export – import turnover of the province. Besides, they also help generate new industries for the province and thus add more income sources to the State Budget. Specifically, in 2012, FDI enterprises earned US$599 million from exports and paid US$10.4 million to the State Budget.
Enhancing investment quality
In recent years, particularly in 2012, economic crisis adversely affected operations of FDI enterprises in the province, causing total revenue and export turnover to decline. For example, Hyundai Vinashin Company, a major contributor to revenue and export turnover of FDI enterprises, failed to uphold its growth rate as high as previous years.
Mr Vo Tan Thai, Director of the provincial Department of Planning and Investment, said: Global economies are predicted to continue to develop complicatedly in 2013. FDI enterprises will continue to suffer from difficulties arising from high input costs and reduced orders. Thus, in 2013, the province expects to grant investment certificates to eight projects, with the most remarkable project being Van Phong 1 Thermal Power Plant in Van Phong Economic Zone with a total investment capital of US$2 billion. FDI businesses in the province are expected to earn US$630 million of revenue, up 5 percent from 2012, and US$550 million of export revenue, up 10 percent from 2012, pay US$11 million to the State Budget, and generate 15,000 jobs.
He said the province is now calling big investors to explore conditions and discuss investment opportunities, especially into three key economic areas, namely Van Phong Economic Zone, Nha Trang City, Cam Ranh Peninsula, as well as industrial parks. Nonetheless, the province gives priority to petrochemical, high tech, supporting industries; infrastructure and human resource development; tourism services; and export-oriented sectors.
In addition, the province will carefully examine investment projects and refuse projects using backward or environmentally adverse technologies, inspect licensed investment projects and revoke projects failing to keep the progress.
Moreover, it will support enterprises to deal with investment procedures, site clearance and infrastructure investment to speed up the implementation of investment projects.