The Saigon Times Daily: The Investment Day 2012 held by the province early this year saw no FDI projects licensed though FDI was a major source of capital in the province in the past. What do you comment?

- Ho Van Nien: There were actually some FDI projects but their investors did not complete the procedures on time. Ba Ria-Vung Tau used to be an easygoing province in the project approval process. It often chose the beginning of a year to license as many projects as possible to expect good luck in the entire year. Therefore, we often accelerated the approval process to have the first projects licensed at the start of year. Of course, we still strictly adhered to the investment assessment and approval regulations. It was a regret that a Japanese company did not get the investment certificate for its project in the Investment Day event.

Unlike in previous years, the Investment Day 2012 attracted a lot of Japanese investors. Almost all Japanese investors in Ba Ria-Vung Tau attended the event. Some from HCMC also came and the Consulate General of Japan in HCMC also sent representatives there. This shows signs of a new capital flow from Japan into Ba Ria-Vung Tau. This is the result of our effort made last year to promote Japanese investment.

Does this mean your province is more interested in attracting investment from Japan?

- We are calling for investment from different parts of the world. However, the province’s strategic focuses are on two important fields: logistics and supporting industries. Small and medium-sized enterprises of Japan have been strong in supporting industries in the past few years. We’ve visited some areas in Japan such as Kansai and Kanto in a bid to attract investors into supporting industries here in the province. After several investment promotions, many small and medium enterprises of Japan have shown interest in exploring investment opportunities in the province. In addition, some independent Japanese research institutes have arrived in Ba Ria-Vung Tau to look into the province’s development potentials.

Do Nhat Hoang, head of the Foreign Investment Agency (of the Ministry of Planning and Investment) has said Vietnam would set aside two industrial zones exclusively for Japan, marking the first time there will be a special industrial zone for a particular country.

One of them will be located in Hai Phong City and the other in Vung Tau.

Can you tell us what the Japanese organizations think about the province’s orientation for investment attraction?

- According to the Japan International Cooperation Agency (JICA), the province actually has advantages in logistics development but it needs to give a second thought to supporting industries. However, JICA sees Ba Ria-Vung Tau as a worthwhile investment destination. They will do further research so as to help the province tap its investment potentials.

What has Ba Ria-Vung Tau done to welcome investors committed to supporting industries?

- We are working on investment promotion plans in a more professional way by identifying what and who to attract and having appropriate tactics to bring investors to the province. For example, industrial development is not as it was in the past. In addition to manufacturing plants, industrial parks also need service networks, commercial centers, worker dorms, factories for small and medium businesses, offices for foreign investors, and training schools. We are paying attention to teaching the Japanese language and culture to employees at Japanese-invested businesses.

This means the province has made good preparations but why has it set a humble FDI target for this year?

- We have set a goal to attract some US$500 million this year (against US$950 million attracted in 2011). The province set such a low target because we will spend this year preparing conditions to lure the projects meeting our orientation, instead of targeting as many projects and as much capital as possible like before. Our focus is how to attract investment in logistics and supporting industries. Of course, we do not turn down on other projects, but we need to select projects.

Is it because the province has licensed several large-scale projects in recent years, but these projects have delayed implementation?

- Not really. The very problem stems from the province’s current economic restructuring. The provincial Party Congress in late 2009 clearly defined objectives, orientations, and strategies and now we must attract investments that ensure sustainable socio-economic development. The province will look for investment not only in oil and gas, heavy industry, tourism and services, but also logistics services and supporting industries. This represents a new direction adopted by the province which requires a new approach towards investment attraction. In fact the province does not have problems with project delays. Large-scale projects in the province are still underway, except for some affected by the global recession rather than wrong investment decisions. The current projects are meeting the province’s orientation but most of them have felt the impact of the global economic downturn.

In recent years, steel and property projects have made great contributions to the province’s FDI attraction. Will the province continue to attract such projects?

- At present, our policy is to stop the licensing of new steel projects. In 2011, the province licensed the final steel project, which belonged to Vina Kyoei.  It was not a new investment certificate but it was for the second phase of this project. The province is considering withdrawing certificates from projects whose investors are deemed incompetent and from those long delayed such as construction steel projects.

Last year the province attracted only US$950 million in fresh investment capital but disbursements amounted to US$1.2 billion. What is your view?

- Such disbursements came mostly from old projects. Our concern last year was to push for disbursements of US$27 billion by 298 projects licensed in the past 20 years. That was why we had such an achievement. As planned for 2012, the province will attract some 30 foreign investment projects, up 20% over 2011, with total registered capital of US$500 million, down 46% versus 2011. Disbursed capital is estimated at US$1.35 billion, an increase of 11.6%. In order to fulfill the 2012 investment attraction plan, the province will continue construction, compensation, and site clearance to promptly hand over land to investors as well as boost support for investors.