14:46 | 21/08/2019 Economy
(VEN) - Foreign direct investment (FDI) in Ho Chi Minh City (HCMC) has been growing and is expected to further increase as a result of signed free trade agreements (FTAs).
According to Dang Huynh Mai, Deputy Director of the Ho Chi Minh City Department of Planning and Investment, the city has attracted US$3 billion in FDI this year. The real estate sector has taken the lead with 26 projects totaling US$225.9 million in registered capital (accounting for 42.7 percent of the total), followed by science and technology with 136 projects worth US$115.2 million (21.8 percent), and trade with 234 projects worth US$102.3 million (19.3 percent).
According to Takimoto Koji, Chief Representative of the Japan External Trade Organization (JETRO) Office in Ho Chi Minh City, the city’s investment environment still has problems, including traffic jams, flooding and environmental pollution, which are discouraging investors from investing in the city.
There are 16 export processing zones and industrial parks in HCMC, but their occupancy rate is lower than 70 percent. Enterprises operating in these zones and parks are unlikely to expand their production scale, while newly licensed businesses do not have sufficient land. The Ho Chi Minh City Export Processing and Industrial Zones Authority (HEPZA) says many businesses in the city’s export processing and industrial zones have not received land use right certificates despite having paid off land rent.
The city has established a working group to inspect the use of land and infrastructure development in export processing and industrial zones and suggested plans for about 1,000 hectares of land in 2020. The city has thought of building new high quality and competitive industrial parks for enterprises applying high and new technology.
The city selects investors for its projects through public, transparent bids, and builds connectivity between domestic and foreign-invested enterprises to create value chains and add value to its products for domestic consumption and export.
|There are 8,568 ongoing FDI projects totaling US$45.63 billion in capital in Ho Chi Minh City.|