09:54 | 10/12/2018 Investment
(VEN) - Vietnam’s southeastern localities, including Ho Chi Minh City and Binh Duong, Dong Nai, and Ba Ria-Vung Tau provinces are preparing strategies to attract higher-quality foreign direct investment (FDI), giving priority to investment in high technology and service industries.
Reports by southeastern provinces and cities show that FDI in the localities has maintained a high growth and improved in both quantity and quality.
Dong Nai Province, for example, attracted an additional US$1.59 billion (including capital of newly licensed projects and increased capital of existing projects) in the first 10 months of 2018, up 106 percent from the same period in 2017 and 59 percent higher than the 2018 target. This has taken the total FDI capital in the province to US$33.4 billion (1,853 projects). Dong Nai has encouraged high-tech, support industry and environmentally friendly projects and projects employing skilled workers.
FDI in Binh Duong Province reached more than US$900 million in the first 10 months of 2018 and is expected to reach US$1.4 billion this year. The province is prioritizing quality investment.
Ba Ria-Vung Tau Province has so far attracted 343 FDI projects totaling US$27.3 billion in registered capital from investors from 30 countries and territories worldwide, including such famous names as ACDL, SMC, Nippon, Mitsubishi, Posco, Sumitomo, Itochu, Kyoei Lotte, and Sojitz.
Ho Chi Minh City attracted an additional US$1.32 billion in FDI in the first 10 months of this year, 78.3 percent of that in the same period last year.
Le Hoai Quoc, Head of the Saigon Hi-Tech Park (SHTP) attributed the strong FDI growth in Ho Chi Minh City and other southeastern localities to investment and production expansion strategies of foreign-invested Vietnam-based companies and the localities’ improved infrastructure and workforce.
Many provinces in the region have targeted quality, sustainable FDI including large-scale projects with modern technologies, and environmentally friendly, capable, prestigious and high added value projects.
Particularly, Ba Ria-Vung Tau has formulated investment attraction criteria and taken the initiative in drawing prestigious investors. The province set a target of attracting an additional 80 FDI projects totaling about US$4 billion in registered capital and 90 more domestic investment projects with a total registered capital of about VND100 trillion from now to 2020.
A recent report by Standard Chartered Bank entitled “Vietnam - Fast, not Furious, Growth,” foresees “continues to expect robust gross domestic product (GDP) growth of seven percent for 2018 and 6.9 percent for 2019, driven by strong FDI-supported electronics manufacturing and rising consumption.”
In the southeastern region, the FDI sector has had a positive impact on other economic sectors, helping bring into
play domestic investment sources, improve production and promote businesses’ participation in global production