10:37 | 17/06/2016 Investment
(VEN) - Vietnam currently has 310 industrial zones (IZs) and 16 economic zones (EZs). These IZs and EZs have attracted 6,678 foreign direct investment (FDI) projects with total registered capital of US$146 billion, accounting for more than 31 percent of the total number of FDI projects and over 50 percent of the total amount of registered FDI capital in Vietnam.
Large FDI projects
According to Ministry of Planning and Investment (MPI)’s Economic Zones Management Department Director Tran Duy Dong, since the beginning of this year, Vietnamese localities have granted investment registration certificates for 230 FDI projects with total registered capital of US$2.8 billion and allowed 165 ongoing projects to increase their capital by a total of nearly US$700 million. In the first four months, IZs and EZs attracted US$3.5 billion of FDI, accounting for 66 percent of the total amount of FDI in Vietnam.
Major FDI projects included a US$110 million Singaporean-invested garment factory owned by Maple Co., Ltd, based in the Vietnam-Singapore Industrial Park in Bac Ninh Province; a US$100 million South Korean-invested headphones and connector manufacturing plant owned by New Wing Interconnect Technology Co., Ltd, based in Bac Giang Province; and the Chinese Taipei-invested US$220 million Dai Duong Paper Production Co., Ltd based in Tien Giang Province’s Long Giang IZ.
The MPI said most FDI projects in IZs and EZs were large in terms of registered capital and modern in technology, contributing significantly to socioeconomic development in Vietnam.
Target for 2016
Dong said Vietnamese IZs and EZs expected to attract about US$11 billion of FDI in 2016 (US$9 billion in IZs and US$2 billion in EZs), and were pursuing the goal of attracting about 70 percent of all FDI in Vietnam in the coming time.
Businesses in IZs and EZs have created jobs for about 250,000 workers and are expected to contribute more than 51 percent to Vietnam’s foreign trade value.
To achieve this target, the MPI has requested other ministries and ministerial-level agencies to authorize the management boards of IZs, export processing zones, hi-tech parks, and EZs to implement management tasks at a state level in accordance with the 2014 Investment Law, while at the same time amending and supplementing specific legal documents to prevent overlapping.
The MPI also requested localities to concentrate on attracting capital from different sources such as official development assistance, FDI, state budget, government bonds, and public-private partnerships to build essential infrastructure for IZs and EZs in order to attract investors.
The MPI is undertaking research aiming to establish specialized IZs in order to promote major industries such as electronics, engineering, textiles and garments, leather and footwear, and food processing.
Vietnam has so far attracted nearly 21,000 FDI projects with total registered capital of US$288.5 billion.