09:12 | 05/02/2020 Economy
(VEN) - The Southern Key Economic Zone (SKEZ) has become Vietnam’s hottest investment destination, accounting for 43 percent of all foreign direct investment (FDI) pledged. The SKEZ has made greater efforts to improve the investment environment, cut red tape and remove bottlenecks in order to enhance further the effectiveness of its FDI attraction.
Lead in FDI attraction
Consisting of Ho Chi Minh City and nearby Dong Nai, Binh Duong, Ba Ria-Vung Tau, Binh Phuoc, Tay Ninh, Long An, and Tien Giang provinces, the SKEZ has made the largest contribution to Vietnam’s economic development, accounting for 45.4 percent of the country’s gross domestic product (GDP) and 42.6 percent of total budget revenues. It has taken the lead nationwide in terms of FDI attraction with over 16,000 valid FDI projects for total registered capital of more than US$160 billion, accounting for 43 percent of all FDI pledged.
Some provinces and cities in the SKEZ, such as Ho Chi Minh City, Dong Nai, Binh Duong and Ba Ria-Vung Tau have opened doors to investors in a diverse range of fields.
According to the Dong Nai Department of Planning and Investment, the province attracted more than US$1.9 billion in FDI in 2019, exceeding 61 percent of the annual plan. The province has given priority to support industry, environmentally friendly, and high-tech projects by offering industry-specific incentives for foreign investors. To date, the province has 1,460 valid projects for total capital of nearly US$30 billion.
Binh Duong Province attracted about US$3 billion in FDI in 2019, doubling the annual plan of US$1.5 billion. To date, the province has more than 3,700 FDI projects from the 64 countries and territories with total registered capital of nearly US$34 billion, mainly focusing on industrial production, trade and services.
Ba Ria-Vung Tau Province attracted 40 new FDI projects with total registered capital of US$491.4 million in 2019, while 30 existing projects were injected with an additional US$449.56 million. The province is gradually taking more initiative in approaching large investors and applying high technology and plans to pay special attention to investment in seaports, logistics, tourism and high-tech agriculture.
Ho Chi Minh City attracted US$7.5 billion in FDI in 2019. As many as 1,182 new projects were granted licenses with total registered capital of US$1.4 billion, while 282 existing projects were injected with an additional US$767.3 million. Overseas players spent US$4.779 billion to acquire shares in city-based businesses in 2019. Ho Chi Minh City has taken the lead nationwide in terms of FDI attraction with over US$46.5 billion. Capital contributions and share purchases has become a new trend of FDI inflows into Ho Chi Minh City.
Outstanding investment environment
To meet the development requirements and the trend of greening investment capital, localities in the SKEZ have promoted investment attraction in environmentally friendly and high-tech projects.
Tran Thanh Liem, chairman of the Binh Duong People’s Committee, said the province has promoted investment in completing infrastructure in industrial zones and clusters to meet the requirements of businesses, and strengthened reforms of administrative procedures to create favorable conditions for investors. In addition to traditional fields, the province has adopted a policy of building a science and technology zone to attract investment in high-tech and innovation.
With a leading and central role of the SKEZ, Ho Chi Minh City has made greater efforts to drive towards a dynamic economic structure with high added value and low environmental pollution.
Dong Nai Province will continue to invest in infrastructure and logistics to help businesses reduce transport costs, and strengthen reforms of administrative procedures to facilitate their trade and production activities. Local businesses can contact the Dong Nai Industrial Zones Authority or the Dong Nai Department of Planning and Investment directly to discuss solutions and remove difficulties.