Southeastern region leads in foreign attraction

10:03 | 20/01/2017 Economy

The southeastern region remains the most attractive destination for foreign direct investment (FDI) in Vietnam.

The southeastern region remains the most attractive destination for FDI in Vietnam

According to the Foreign Investment Agency at the Ministry of Planning and Investment, the region had three out of the five localities nationwide drawing the most foreign investment in 2016.

Ho Chi Minh City led with 836 newly-licensed projects, 222 existing ones with capital adjustment and 1,935 others with foreign investors’ stakes. Its total newly registered and increased capital was estimated at US$3.42 billion in 2016, accounting for 14% of the country’s total foreign investment.

As a dynamic trade centre, HCM City attracted FDI in various fields including real estate, wholesales, information and communication, food and beverage services. The municipal statistics office said HCM City has 6,000 projects with a total registered capital of US$40.6 billion.

Meanwhile, Binh Duong and Dong Nai came in fourth and fifth with respective total newly registered and increased capital of US$2.36 billion and US$2.23 billion. Other southeastern localities such as Long An, Binh Phuoc, and Binh Thuan were also attractive to foreign investors.

During its development, the southeastern region has proven strong in manufacturing. Compared to other cities and provinces nationwide, southeastern localities boast advantages in geography, climate and transport infrastructure, which aid the development of manufacturing models and services.

The southern province of Dong Nai is one example. According to the provincial Department of Planning and Investment, by the end of 2016, Dong Nai had attracted 1,664 projects worth US$30.3 billion. It has 1,253 valid projects capitalised at US$25.7 billion. The locality is prioritising projects using high technology and skilled workers as well as the support industry and environmentally friendly projects.

Meanwhile, Binh Duong counts 2,827 projects with total capital of US$25.7 billion, making up 13% and 8.5% of the country’s total foreign projects and capital respectively. The province is home to 28 industrial parks and ten industrial clusters, the Vietnam-Singapore Industrial, My Phuoc and Dong An parks.