City records soaring foreign investment during Jan-Feb 2017

14:35 | 07/03/2017 Economy

Total foreign investment in Ho Chi Minh City in the first two months of 2017 has seen a big rise at US$443.1 million, up 61.3% over the same period last year.

A corner of Ho Chi Minh City - Credit: HCM CityWeb

Reporting at yesterday’s meeting on the southern hub’s socio-economic development in the first two months of this year, Su Ngoc Anh, Director of the city’s Department of Planning and Investment said that in February, there were 96 new projects licenced in the city, with a total investment of US$119.1 million (up 6.7% in terms of the number of projects), plus 24 that adjusted their capital with a total investment at US$59.7 million.

The city also registered 217 foreign investors to contribute capital and purchase shares or acquire interests in the city’s enterprises with a total registered capital at US$264 million, a sixfold increase in capital compared with the same period of last year.

The information and communications sector received the most investment (42.4%) at US$50.5 million, followed by wholesale and retail trade, the repair of automobiles and motorcycles (accounting for 26.8%) at US$31.92 million and processing and manufacturing (8.7%) at US$10.34 million.

Malaysian investors contribute the largest proportion (37.2%) with US$44.24 million, followed by Japan (20.4%) at US$24.34 million and the Netherlands (accounting for 13.4%) at US$16 million.

Regarding domestic investment, Director Su Ngoc Anh said that the city has licenced 4,404 newly established enterprises with a total registered capital of VND57.2 trillion (US$2.5 billion), up 11% over the same period last year in the number of businesses and doubled in registered capital.

The city is tracking 20 ODA projects with a total investment of over VND114.2 trillion, of which ODA capital accounting for VND97.8 trillion and counterpart funding over VND16.4 trillion. In the 2017, allocated ODA will be VND952.5 billion. Cumulative disbursement in the first two months of 2017 has reached VND245 billion.

To attract more investment, in the future, the Ho Chi Minh City People's Committee aims to continue to implement measures in support of business development and the improvement of the investment climate, while holding regular meetings between the city’s leaders and foreign investors.

On the other hand, the city will also focus on supporting enterprises to improve productivity, quality and innovation, as well as supporting the formation of a startup ecosystem and promoting innovative startups.

It also pays attention to improving business support policies and promoting the switch of individual business households to operating in the form of businesses, helping them gain access to the city’s support programmes and policies, in addition to expanding support from its professional associations to business expansion, investment in equipment and new technologies and access to foreign markets.

Theo NDO