The Government has just promulgated regulations on selective foreign direct investment attraction for nearly three years, but Dong Nai Province has been ahead of the whole country in carrying out this policy for more than ten years.
The Government has just promulgated regulations on selective foreign direct investment attraction for nearly three years, but Dong Nai Province has been ahead of the whole country in carrying out this policy for more than ten years. Therefore, the province’s FDI capital invested in the supporting industries is among the highest across the country and is considered as the capital of the supporting industries by many enterprises.
The supporting industries in Dong Nai Province are divided into various groups, including fiber, yarn, and fabrics; electronic components, tools, and spare parts; equipment for all kinds of machinery; input materials for the footwear industry. Many world-famous corporations in the field of supporting industries are present in the province, such as Bosch, Hyosung, Fujistu, Schaeffler, Vision Group, Kenda, and Mabuchi Motor.
The province has seriously selected FDI projects so the statistics in recent years showed that 50 percent of FDI capital into the country belonged to the supporting industries. The goal of the province in prioritizing capital attraction for the supporting industries is to provide input materials for many other enterprises in the province and gradually increase the localization ratio of export products. Therefore, it will be easier for enterprises to enjoy tariff incentives from effective free trade agreements that the country has signed.
In the past years, in investment promotions to Japan, South Korea, the US, Germany, and Taiwan, the province had prioritized inviting FDI enterprises to invest in the field of supporting industries. Thereby, there are more and more FDI enterprises coming to the province to invest in this field, providing input materials for many enterprises inside and outside the province.
Mr. Tran Duc Dan, Director of Casum Shoes Joint Stock Company, said that earlier, the materials for footwear production must be imported for 80-95 percent, but in the past two to three years, domestic material supply has increased, meeting 40-60 percent of the demand. There were some orders, domestic materials accounted for 70-80 percent and the sources of supply are more and more plentiful.
According to Mr. Cao Tien Sy, Head of Dong Nai Industrial Zones Authority, thanks to the selection in investment attraction, the capital inflows into the province have been as requested for many years, making the province become a large input material supplier for the country and export. This creates a great attraction for FDI investors because businesses investing in the province can easily find raw materials right in the province.
