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Local, foreign companies find Thái Nguyên attractive

Update: July, 03/2018 - 08:00
Prime Minister Nguyen Xuân Phúc and former Party General Secretary Nông Đức Mạnh met with representatives of enterprises at Thái Nguyên’s2018 Conference for Business Promotion on July 3. — Photo by Masan Courtesy.
Viet Nam News

HCM CITY — With its geographical advantages and favourable investment environment, the northern province of Thái Nguyên has become an attractive investment destination for many local and international corporations.

At the province’s 2018 Conference for Business Promotion held recently, the province said it is home to 6,318 enterprises with a comined investment of VNĐ79.5 trillion and 130 FDI projects worth $7.3 billion.

Many businesses have enjoyed great success in the province, including Masan Group and Samsung Electronics, which have made significant contributions to Thái Nguyên’s socio-economic development.

Masan Group, one of Việt Nam’s leading private enterprises, has invested almost a billion dollars since 2010 in a tungsten mining and processing project in Núi Pháo in Đại Từ District in the northern province of Thái Nguyên through its subsidiary, Masan Resources.

Masan Resources’ revenues are expected to reach VNĐ8 trillion this year, backed by a 36 per cent global tungsten market share ex-China, Nguyễn Đăng Quang, the chairman and CEO of Masan Group, said at the event.

It contributed about VNĐ3.2 trillion in taxes in 2015-17, Quang said.

The Núi Pháo project employs hundreds of international experts in mining, processing and refining besides over 2,000 Vietnamese, and has set a new standard in the mining industry.

Masan bought the Núi Pháo mine in June 2010 from a foreign owner and in the beginning only had a few dozen employees. Doubts shrouded the project as many people questioned Masan’s execution capability and the project’s success.

But the company beat all the odds, proving to the world it could turn it around and ramping up Núi Pháo’s operational capability.

In Thái Nguyên Province, South Korea’s Samsung Electronics put into operation a hi-tech complex in the Yên Bình industrial complex in 2014.

It was worth $6.23 billion, and employs 70,000 people.

According to General Director of Samsung Vietnam Shim Won Hwan, Samsung Electronics Vietnam Thai Nguyen  has set itself an export target of $22 billion this year.

The company had become one of largest businesses not only in Thái Nguyên but also the whole country, he said.

Samsung and Masan chose Thái Nguyên as the base for one of their largest investments since the province has advantages including being close to Hà Nội and Nội Bài Airport and having direct transport links with the port city of Hải Phòng, facilitating easy travel by their employees and transportation of goods.

Besides, Thái Nguyên is among the 15 most competitive provinces in Việt Nam and the top 2 in the north.

It is also one of the two provinces with a large number of profitable enterprises among the 14 in the northern mountains. This is a showcase of a quality environment for investment, according to the Việt Nam Chamber of Commerce and Industry (VCCI).

Nguyễn Đăng Quang, the chairman and CEO of Masan Group,made a speech at Thái Nguyên’s2018 Conference for Business Promotion held on 3 July. — Photo by Masan courtesy.

The business environment in Thái Nguyên is generally considered to be competitive and friendly, with companies enjoying many incentives, which improve the province’s image as an attractive investment location for both Vietnamese and international corporations.

Samsung Electronics Vietnam Thai Nguyen has attributed its success to the province’s highly skilled workforce, good infrastructure and favourable business environment among others.

Their success has made huge contributions to the Vietnamese economy, especially Thái Nguyên’s.

In a way, large investments in Thái Nguyên by world-class companies has changed it for the better and brought positive social and economic impacts to local people’s lives.

As a result of Samsung and Masan’s investments, Thái Nguyên has joined the ranks of Việt Nam’s provinces with the largest investments and exports.

A highlight of Thái Nguyên’s economy is its fast-changing composition. Industrial production grew the most in the past four years.

Last year industry and construction accounted for a 55.4 per cent share of the province’s economy, services for 32 per cent and agriculture, forestry and fishery for 12.6 per cent.

Income per capita has risen significantly in recent years, from around $700 in 2008 to $2,300 last year.

At Thái Nguyên’s 2018 Conference for Business Promotion, Quang said: “We are proud to have Núi Pháo as a beacon of the ‘Vietnam Can Do’ spirit as we are becoming a fully integrated downstream industrial chemical and metals business of global scale, with a 36 per cent market share ex-China.

“We are committed to fighting for Việt Nam’s faith and pride and preserving and amplifying ‘Vietnam Can Do’ as we take on global competition.”

He urged the Government to continue with its administrative reform, easing administrative formalities for companies in the province, to boost economic gains and contribute to Thái Nguyên’s economic and social growth.

The CEO of Samsung Vietnam also urged all levels of Government to expedite regulatory and administrative processes, quickly address enterprises’ concerns since these factors bear the most risks to the operation of any enterprise.

He praised Thái Nguyên officials for their continuous understanding and support for all investment activities in the province. — VNS

 

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