Nghe An conquers hearts of South Korean investors

17:29 | 06/07/2020
Preparing complete industrial infrastructure in collaboration with offering particular incentives, the central province of Nghe An is rising as an attractive investment destination for foreign investors, especially those from South Korea. 
nghe an conquers hearts of south korean investors
Nghe An conquers hearts of South Korean investors

In the framework of a conference themed on co-operation and development between the province and South Korea – which was part of a wider “Meet Korea 2020” event organised last week in Hanoi – numerous South Korean investors were highly appreciative of the investment environment in Nghe An.

Jun Hyunsoo, general director of export garment maker Sangwoo Vietnam Co., Ltd. said, “We studied the investment opportunities in the northern provinces of Phu Tho and Vinh Phuc. However, we selected Nghe An as the final destination because of its advantages in technical infrastructure and the licensing procedures, as well as the support from local authorities.”

Under the initial plan, Hyunsoo determined that it would take three years to complete the procedures for licensing and to move the plant into stable operation. “However, in reality it only took 10 months. The procedure is simple and clear, based on complying with government regulations, and the staff are professional. Especially, the province is willing to accompany Sangwoo Vietnam to deal with difficulties on time,” he said.

Nguyen Duc Trung, Chairman of the provincial People’s Committee, affirmed, “The province considers the South Korean business community an important partner and the backbone of the integration strategy of Nghe An. The province has made an effort to improve management quality, expand industrial infrastructure, and accompany investors.”

The provincial People’s Committee will urge localities to implement synchronised solutions to deal with investor difficulties by removing administrative bottlenecks for newly-registered projects, and supporting enterprises investing in infrastructure at industrial parks and clusters by accelerating land clearance and compensation in order to speed up the process.

Trung emphasised the important role of the conference, which is a bridge to connect provinces and enterprises and help the latter look for partners.

“Nghe An organises investment promotion events every February. However, this year’s event was cancelled due to the pandemic. Thus, this may be the first official investment promotion event held in the first half of 2020,” Trung said.

Aware of the importance of incentives in calling for investment, Nghe An offered massive incentives in terms of tariffs for enterprises when they invested in Dong Nam Nghe An Economic Zone.

Notably, the investor will enjoy a corporate income tax (CIT) exemption in the first four years and a 50 per cent CIT reduction will apply for the subsequent nine years.

A tax holiday and tax reduction will start at the first profit-making year or the fourth revenue-generating year, whichever comes first.

Regarding import tax, an exemption will be applied to machines and equipment which are used to create fixed assets. In addition, investors will enjoy a five-year exemption for materials and components of production that cannot be produced domestically.

Nghe An is a prime location for integrated logistics and transport in the country. It hosts Vinh International Airport with capacity of three million passengers, in collaboration with synchronous road infrastructure such as Highway No.1, National Road No.15, and Ho Chi Minh Highway.

One of Nghe An’s great benefits is the proximity to waterways. There are three existing ports and two deep seaports under development, namely Loc An International Port, Cua Lo International Deep Seaport, and Dong Hoi Deep Seaport.

Nghe An has recently become a top investment destination for both international and local groups. Among them are large ventures including a $1.2 billion dairy farm from TH Milk Food JSC, high-tech pig-breeding Nutri-Farm from Masan Group worth VND1 trillion ($43.47 million), some key hydropower plants, and four projects invested by FLC Group valued at VND11 trillion ($480 million).

Husbandry group Mavin, which committed to invest $80 million in four projects in the province, said that Nghe An has an ideal geographical position to develop agricultural projects, and also offers more incentives than other provinces.

Nghe An boasts 28 projects invested in by South Koreans with $176 million registered in sectors such as garments and textiles, and electronic components and parts assembly. According to the Korean Chamber of Commerce and Industry in Vietnam, an additional 30 South Korean enterprises are set to establish facilities in the province.

The province will prioritise investment into clean and green agriculture employing intensive farming while improving pharmaceutical products, coffee, rubber, and tea.

In addition, priority will also be given to projects on meat processing and animal feed production; investment in high-tech industries; supporting industries and mechanical manufacturing; and the production of new materials.

By Nguyen Oanh

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