13:00 | 02/05/2020 Investment
(VEN) - The southern province of Ba Ria-Vung Tau is making greater efforts to complete infrastructure and take advantage of free trade agreements in order to attract foreign direct investment (FDI).
|A corner of the Chau Duc Urban Industrial Park and Golf Course|
The development strategy for 2020 continues to focus on completing the road system connecting the province with localities in the region, including roads connecting the port system with Highway 51, industrial zones and logistics centers; developing the system of inland ports and warehouses around the Cai Mep-Thi Vai port; and promoting investment in railway lines connecting the Cai Mep-Thi Vai port and stations in provinces and cities in the southern key economic zone.
The province has many advantages for foreign investment, such as good infrastructure, developing port services, low labor costs, and high economic growth. In 2020, the province will invest strongly in the Cai Mep-Thi Vai port system and logistics centers in order to strengthen connections with European supply chains.
In addition to developing and completing infrastructure, free trade agreements in which Vietnam is a signatory also offer opportunities for the province to promote FDI attraction.
Logistics providers are expanding their operations in Southeast Asia, with Thailand, Vietnam and Malaysia featuring prominently on their radar thanks to strong development of e-commerce and high logistics efficiency. With the effect of the ASEAN Trade in Services Agreement (ATISA) and the ASEAN Agreement on Electronic Commerce, the Southeast Asia third party logistics market is expected to grow at a compound annual rate (CAGR) of 5.5 percent over the next few years, reaching US$56 billion by 2025.
Another bright spot for FDI in Vietnam in general and Ba Ria-Vung Tau Province in particular is the signing of free trade agreements that will promote exports and create jobs. ASEAN currently has free trade agreements with Australia, New Zealand, China, Hong Kong (China), India, Japan and the Republic of Korea. The EU-Vietnam Free Trade Agreement (EVFTA) will have a positive impact on Vietnam’s economy. However, the benefits of free trade agreements will not be realized if localities do not take advantage of opportunities.
With a view to attracting investment in key industries, FDI projects in Ba Ria-Vung Tau Province have contributed to creating jobs, promoting technology transfer and increasing competitiveness. Over the years, the province has issued appropriate policies to support businesses in participation in provincial and regional supply chains. Plans call for the province to keep improving the business and investment environment, enhance the quality of human resources, and take the initiative in attracting foreign investment in a selective manner, focusing on quality, effectiveness, technology and environmental protection. The province will also strengthen investment promotion activities at home and abroad.