The attraction of foreign direct investment (FDI) of many localities across the country has achieved impressive results during the first quarter of 2016. Many provinces and cities are making efforts to effectively improve the investment climate in order to lead the country in foreign direct investment (FDI) attraction.
The attraction of foreign direct investment (FDI) of many localities across the country has achieved impressive results during the first quarter of 2016. Many provinces and cities are making efforts to effectively improve the investment climate in order to lead the country in foreign direct investment (FDI) attraction.
Supporting investors
Dong Nai surpassed the capital city to become the most saught after destination for foreign businesses, as it absorbed US$585 million in investments, totalling 14.5% of FDI registered in the country. Bac Ninh and Binh Duong provinces came second and third with US$398 million or 9.8%, and US$371 million or 9.2%, respectively.
The achievement was attributable to the province’s renewing investment incentives, focusing on large-scale capital investment projects and on services, supporting and high-tech industries. Besides attracting investment from large corporations, Dong Nai is also focusing on attracting capital from small and medium-sized enterprises operating in the support industry.
The province continues to improve the investment environment and open dialogue with businesses to promptly deal with any arising difficulties. Processing-manufacturing, property trading, and science-technology are also drawing foreign investors’ attention. Dong Nai is now home to 1,577 FDI projects worth over US$28.3 billion with 1,208 projects remaining active with US$23.79 billion and 369 others revoked with US$4.52 billion.
In the first quarter of this year, foreign investors have registered to invest approximately US$4.03 billion in Vietnam, surging by 119% against the same period last year. Statistics from the Foreign Investment Agency (FIA) revealed that investors from the Republic of Korea (RoK) took the lead with US$888.6 million, accounting for 22% of the nation’s total foreign direct investment (FDI). They were followed by those from Singapore and Chinese Taipei with US$554 million and US$466 million, respectively.
According to the FIA, 473 new foreign-invested projects, totalling US$2.74 billion, received investment certificates during the reviewed period, up 125% year-on-year. In addition, 203 operating projects were approved to raise capital by US$1.29 billion, up 107% on-year. Meanwhile, FDI disbursement also saw an encouraging increase of 15% to US$3.5 billion. In the first three months, foreign investors injected funds into 19 sectors. Of these, the manufacturing and processing industry attracted the lion’s share of FDI with US$2.9 billion, accounting for 72.2% of the total FDI pledged in the country.
The real estate industry ranked second with about US$240 million, equivalent to 6%. One large-scale project, valued at approximately US$211 million, helped the entertainment industry come third, representing 5.2% of the nation’s total FDI.
Optimistic about FDI attraction
Although Ho Chi Minh City has witnessed a slight fall in FDI attraction in the first three months of this year, according to the municipal Department of Planning and Investment, the situation for FDI attraction is quite favourable and the ability to attract FDI into the city in the remaining months of this year will continue to rise.
Similarly, Dong Nai province is also very optimistic about the prospects for attracting FDI by the end of the year. Deputy head of Dong Nai Industrial Zones Authority Mai Van Nhon said that these new projects were in line with the province’s orientation of attracting foreign investment which prioritises high-tech, environmentally-friendly and support industries. Dong Nai doesn’t want to race for attracting FDI in quantity, it will focus on the quality of the FDI projects. With iIts convenient location, streamlined administrative procedures and improved infrastructure facilities have helped improve the provincial investment climate and made the locality an attractive investment destination for foreigners, he added.
According to Ho Chi Minh City People’s Committee, the city is employing a host of measures to press on with attracting foreign direct investment (FDI), especially in high-tech and hi-tech support industries. The city is conducting a series of reforms to facilitate investments such as helping foreign investors compile business registration dossiers free of charge, providing an online investment registration service and granting investment registration certificates by post. Investment attraction efforts on key industrial and service sectors and hi-tech agriculture will also be focused on.
With strong commitments and efforts to improve the investment environment of local administration, it is expected that the FDI flows into Vietnam will continue to rise in the coming time. In the context of the country's growing international economic integration, as well as its participation in many new generation free trade agreements such as the TPP, EVFTA, and the formation of the ASEAN Economic Community, many foreign investors are promoting their investment in Vietnam. Grasping this huge opportunity, localities across the country will certainly benefit from these important external resources for local socio-economic development.
(Source:Nhan Dan)
