15:19 | 11/03/2014 Economy
(VEN) - With 4,841 effective foreign direct investment (FDI) projects totaling US$34.987 billion in registered capital, Ho Chi Minh City has become the country’s leader in terms of FDI attraction. The city targets to attract an additional US$2.5 billion in FDI in 2014.
Ho Chi Minh City prioritizes FDI in industries with a high scientific and technological content and a high added value
According to the Ho Chi Minh City Department of Planning and Investment, this target was set based on FDI attraction results in 2013 and the first two months of 2014. Le Thi Huynh Mai, Head of Investment Registration Division of the city’s Department of Planning and Investment said that in 2013, although the regional and world economy encountered many difficulties Ho Chi Minh City attracted an additional 477 FDI projects with total registered capital of US$1.05 billion, up 9.4 percent in the number of projects and 76.72 percent in capital compared to 2012, and that 139 other FDI projects increased their capital by US$1.03 billion (up 16.81 percent in the number of projects and 33.13 percent in capital compared with 2012). In other words, last year the city attracted an additional US$2.08 billion in newly licensed and increased FDI, up 51.98 percent from 2012.
In the first two months of 2014, Ho Chi Minh City attracted 46 more FDI projects with total registered capital of US$164.3 million, up 12.2 percent in the number of projects and 267.2 percent in registered capital compared with the same period of 2013, although FDI capital that the whole country attracted in the two months is only 37.5 percent of that in the same period of 2013, according to the Ministry of Planning and Investment’s Foreign Investment Agency (FIA). Also in the first two months of this year, 14 FDI projects registered to increase their capital by US$52.6 million. In other words, in the first two months of 2014, the city attracted an additional US$216.8 million in newly licensed and increased FDI, up 226.1 percent from the same time in 2013. This was a very strong growth as the regional and world economy faced many difficulties.
Based on the results in 2013 and the first two months of 2014, Ho Chi Minh City set a target of attracting US$2.5 billion in FDI in 2014, up more than 20 percent compared with 2013. To achieve the target, in 2014, the city will continue to attract FDI projects in service and industrial sectors with a high scientific and technological content and a high added value in addition to processing and manufacturing industries. It will focus on attracting investment projects from the US, Japan, Singapore, the Republic of Korea (RoK) and Germany while selecting high-technology groups with source technology in 2014.
Service sectors include finance, credit, banking and insurance; commerce, transport, warehousing and port services; posts and telecommunications and information and communication technology (ICT); real estate; consultancy and scientific and technological services; tourism; health; and education and training. Industries with a high scientific and technological content and a high added value include engineering; electronics and information technology (IT), pharmaceutical chemistry and rubber; food processing and biotechnology industries, clean industries and energy efficiency.
Referring to processing and manufacturing industries, in 2014, the Ho Chi Minh City Export Processing and Industrial Zones Authority (HEPZA) has plans for promoting investment in green, environmentally friendly and hi-tech industries and plans for strengthening investment promotion activities in Japan and the RoK. It will also sign cooperation agreements on investment promotion with the Japan External Trade Organization (JETRO) and Korea Trade-Investment Promotion Agency (KOTRA) while building the authority’s website and investment manual and recruiting and training human resources to attract investment from Japanese businesses./.