HCMC and Dong Nai are among the few localities seeing increases in fresh foreign direct investment (FDI) approvals in the first half of the year against the backdrop of falling FDI pledges in the country.
 |
| Employees check machines in operation at an FDI firm in Dong Nai Province. Dong Nai and HCMC are among the few localities seeing higher foreign direct investment (FDI) commitments in the first half of this year. |
HCMC and Dong Nai are among the few localities seeing increases in fresh foreign direct investment (FDI) approvals in the first half of the year against the backdrop of falling FDI pledges in the country.
According to the Foreign Investment Agency (FIA), HCMC took the lead in new FDI approvals between January and June with around US$1.2 billion registered for fresh and operational projects, up 12.2% against a year earlier and equivalent to over 20% of the nation’s total.
Though FDI capital for new projects in HCMC dropped by 17.5% in the period, 84 operational FDI enterprises added an extra US$410 million, up a staggering 58% in number and 3.7 times in capital.
Therefore, the operational projects helped HCMC register more FDI than other parts of the nation, according to the FIA which is under the Ministry of Planning and Investment.
Experts predicted FDI flows into HCMC would continue to rise as some big-ticket projects have been licensed and a number of major investors have pledged expansion in the coming time.
The city government has recently granted an investment certificate to a complex worth US$1.2 billion to be developed by Empire City in District 2. The U.S.-based Jabil signed a memorandum of understanding with the city to invest an additional US$500 million to expand its production at Saigon Hi-Tech Park in District 9.
Meanwhile, Dong Nai Province has beaten its FDI target of US$900 million for the entire year as the figure in the first six months alone amounted to US$1.03 billion already.
Notably, the southern province attracted more foreign investors to the sectors where the province is calling for investments.
According to Bo Ngoc Thu, director of the Dong Nai Department of Planning and Investment, one of the reasons for such high FDI approvals is that the province has sped up administrative reform, especially in the investment, tax and customs fields, to help enterprises save time and money on administrative procedures.
Thu said Dong Nai has focused its investment promotion activities on countries with many potential investors.
According to the FIA, foreign firms registered a total of only US$5.49 billion for projects in Vietnam in the first half, a year-on-year decline of 19.8% and the lowest recorded in the same period since 2012.
The FIA said the period saw 23 cities and provinces attracting less than US$50 million and no new FDI flowing into 21 other localities.
(Source: SGT)
