Southern localities remain FDI magnets

10:47 | 02/04/2018 Economy

(VEN) - In the first two months of 2018, foreign investors invested in 47 Vietnamese provinces and cities. Ho Chi Minh City and the provinces of Binh Duong and Dong Nai continued to lead localities in attracting foreign direct investment (FDI).

southern localities remain fdi magnets

Improved infrastructure and clear administrative procedures are major factors helping southern localities attract investors

According to the Ministry of Planning and Investment (MPI)’s Foreign Investment Agency, Ho Chi Minh City topped the list with registered capital reaching US$1.05 billion, accounting for 31.27 percent of the country’s total. Binh Duong ranked second with US$434 million, accounting for 12.98 percent of the total.

Ho Chi Minh City Planning and Investment Department Director Su Ngoc Anh attributed the growth of FDI in the city to the improvement of its investment environment and decentralization that helped investors save time. In the past, the MPI was the only agency authorized to grant licenses for FDI projects. Since July 31, 2015, local planning and investment departments have been assigned this task. In addition, foreign investment forms have been diversified. Apart from joint-name, joint-venture companies and businesses with 100 percent foreign investment, foreign investors can now contribute capital to or purchase the stocks of domestic companies.

Given that Ho Chi Minh City’s leadership considers investor success its own success and concentrates on improving the investment and business environment, FDI in the city is expected to continue rising in 2018 and ensuing years.

In 2016 and 2017, Binh Duong continuously exceeded its FDI attraction targets. In 2016, it attracted US$2.2 billion, exceeding the annual plan by 64 percent. In 2017, FDI in the province reached US$2.6 billion, 85 percent above the annual plan.

In the first two months of 2018, Binh Duong ranked second among localities nationwide with registered FDI reaching US$434 million. So far, the province has attracted 3,034 FDI projects with total capital of US$28.33 billion. FDI has contributed to Binh Duong’s annual industrial growth of 11 percent and export growth of more than 17.6 percent.

Binh Duong plans to upgrade its infrastructure to attract more investment. Specifically, it will invest in the construction of a flyover over National Highway 13 and the My Phuoc-Tan Van route. The province has provided VND300 billion for the Ministry of Transport to fund the upgrading of the Binh Loi Bridge.

By the end of February 2018, 1,294 FDI projects were ongoing in Dong Nai Province with total capital of nearly US$27 billion. FDI in this locality comes from 45 countries and territories, with the Republic of Korea, Chinese Taipei and Japan being the top three on the list.

Representatives of various foreign companies and groups have visited Dong Nai to seek investment opportunities in the fields of industry, high-tech agriculture and environment. The Eggersmann Group (Germany), for example, wants to invest there in waste treatment. Groups and companies from the Republic of Korea, Japan, China, Chinese Taipei, Finland, the US and France are also seeking investment opportunities in Dong Nai.

Thao Ngoc