FDI into Dong Nai has increased dramatically in recent years. Particularly, FDI flows in the province in the first half of this year hit US$ 565.03 million, up 51% over the same period last year. The figure presented to exceed year target.
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| Dyeing line in Global Dyeing company Ltd. located in Long Thanh industrial park |
FDI into Dong Nai has increased dramatically in recent years. Particularly, FDI flows in the province in the first half of this year hit US$ 565.03 million, up 51% over the same period last year. The figure presented to exceed year target. Accordingly, FDI into the province is expected to goal high in 2005 that is the second year to hit high record since the Asian economic crisis occurred during the last quarter of 1997.
* Dong Nai - appealing destination for foreign investors
With high growth of FDI in the first half of the year, Dong Nai remains the most attractive destination in
Most of the FIEs in Dong Nai are performing well and investors made considerable profits. Many investors plan to expanding business. Some of them asked permission for increasing investment with a combined value of US$ 320 million in the first half of 2005. Although falling behind target, the provincial export turnover increased by 29 per cent over the same period last year. During the period, total turnover in the FIEs reached US$ 2.5 billion. Taxes paid by foreign investors were VND 324 billion (excluded VAT on imports and taxes on exports).
Song May and Ho Nai industrial zones attracted more FDI, it is larger considered than ever before. Many foreign investors have come and run business in the whole area of Tam Phuoc industrial park, in areas of 20 hectares of Long Thanh industrial zone and 40 hectares of Nhon Trach industrial park. In addition, short leasehold land agreements in Dinh Quan industrial zone were signed between foreign investors and local authority. At this place, about 10 FDI projects were licensed. These are under construction.
* High growth in FDI but not reach expectations
Dong Nai attracted more 50 foreign investors in the first half of the year, it will continue to grow to record high in FDI regardless of lower number of foreign investors coming Dong Nai during the final half. The local authority is creating opportunities for inward foreign investment in high-tech sectors with its purpose of land rental reduction and avoiding workforce crisis. A serious labor shortage arose during 2004-2005. Because workforce demands of FIEs are growing, many investors had to go to rural areas, Southwest provinces and Northern regions for finding workforce supplies. Numbers of these supplies were inadequate to meet demands of employers. For these reason, the province should give incentive to attract FDI into high-tech sectors in order to increase labor force skills, not repeat workforce crisis. In addition, expansion of auxiliary industries will benefit to the local economy, create good opportunities for growing small and medium enterprises in Dong Nai. At the same time, foreign currency trading will be saved from lower imported raw materials.
Dong Nai will accelerate public administration reform, improve further investment environment in order to attract more FDI. The province will also pay more attention to build qualifying industrial zones following the model of clean, green and safety as well as maintain a stable workforce and create favorable conditions for foreign investors. These are importance factors which help Dong Nai ecouraging FDI throughout the world and becoming the most attractive destination for foreign investors.
Kim Loan
