17:20 | 23/01/2016 Economy
(VEN) - Southeastern provinces and cities including Dong Nai, Ho Chi Minh City, Binh Duong and Ba Ria - Vung Tau continued to attract growing foreign direct investment (FDI) in 2015.
Dong Nai Province People’s Committee Chairman Dinh Quoc Thai (right) gave an investment certificate to the Kenda Rubber Company in September 2015
FDI capital sharply increases
According to the Dong Nai Department of Planning and Investment, Dong Nai Province received almost US$2.4 billion in FDI by the end of November 2015, surpassing the annual target by more than two-fold. This included 95 new investment projects and 81 ongoing projects with increased capital, a record high for the province, partly due to the shift to choosing quality projects in recent years. There are 1,189 FDI projects with total capital of almost US$24 billion in Dong Nai.
Binh Duong Province attracted US$1.8 billion in FDI in the first 11 months of 2015, an 82 percent increase from what was projected for the year and a 19 percent increase from 2014. So far, the province has received 2,567 FDI projects with total registered capital of US$22.24 billion from 40 countries and territories. With this result, Binh Duong continued to be a top locality in terms of investment attraction in the southeastern region.
While not as busy as Dong Nai and Binh Duong, Ba Ria - Vung Tau Province has attracted investment in major industrial zones and advantageous projects such as tourism and seaports. By November 2015, the province had attracted 10 new projects and permitted 11 ongoing projects to increase their capital. Total new and supplementary FDI reached US$735.1 million. There are 313 effective FDI projects with total registered capital of more than US$27.56 billion.
Ho Chi Minh City has brought into play its strengths in attracting FDI. By November 2015, the city had attracted 517 new projects and permitted 141 ongoing projects to increase their capital. Total new and supplementary FDI capital reached US$3.2 billion. The city recently asked Prime Minister Nguyen Tan Dung to permit seven South Korean subsidiaries of the Lotte Group and Japan to invest in the Thu Thiem smart complex with total capital of about US$2.2 billion. If these companies get licenses, FDI in Ho Chi Minh City will soar in the near future.
Developing infrastructure strengths
According to Dong Nai Province People’s Committee Chairman Dinh Quoc Thai, with a favorable transport system, well-planned industrial zones and the future Long Thanh International Airport, Dong Nai will continue to be an investment destination and a place for many international big-name groups to expand their production. So far, 28 of the existing 31 industrial zones in the province have completed their infrastructure.
Ba Ria - Vung Tau Province Industrial Zones Authority Head Nguyen Anh Triet said the province was calling for investment in its industrial zones to make the most of its advantages in terms of river transport and seaports, while at the same time prioritizing attracting projects in services, high tech production and support industries which will not pollute the environment.
To receive new FDI flows and opportunities after the Trans Pacific Partnership Agreement is concluded, Binh Duong Province is setting up 35 industrial zones and industrial clusters in new districts and towns to restructure the industrial sector in these farming-based localities. Priority will be given to establishing industrial zones to attract investment in support industries and progressively reduce reliance on material imports for the textile, garment, leather and footwear industries.
Southeastern provinces and cities have reaped success in attracting FDI, largely due to further improvements in terms of the investment environment, administrative procedures, infrastructure, high-quality human resources training support and a great emphasis on the quality of projects.