South champions FDI flows

12:28 | 05/01/2011
Southern key economic zones posted impressive foreign direct investment (FDI) outcomes in 2010.
Tan Tao industrial park

A southern growth engine, Ho Chi Minh City reported over $1.82 billion in newly committed FDI capital in 2010 and $1.169 billion in disbursed capital, making 11.7 per cent of the country's total disbursed amount.

Deputy head of Ho Chi Minh City Planning and Investment Department's Investment Registration Division Lai Van Vuong attributed the city's high disbursement rate to  more than two-thirds of foreign invested projects were of medium size and mainly involved in production, retail or manufacturing which featured quick disbursement pace.

Its neighbour Dong Nai province saw a sharp rise in the number of projects seeking capital addition as well as in supplemental capital amount. Accordingly, 62 projects in the province sought $887.7 million in total expanded capital in 2010.

According to Dong Nai Planning and Investment Department deputy director Nguyen Luc Hoa the southern province saw $800 million in disbursed FDI capital in 2010, up 12.36 per cent on-year, of which $520 million was from province-based industrial parks.

"The outcome is thanks to the fact that industrial parks' businesses have stabilised production in the post-recession period while several big groups such as Japan's Toshiba or Germany's Robert Bosch have continuously expanded investments," Hoa said.

In southern Binh Duong province, of $387.6 million attracted by province-based industrial parks in 2010, $268 million was supplemental capital by 65 existing FDI projects, according to head of Binh Duong Industrial Zones Management Authority Tran Van Lieu.

The year 2010 also witnessed these locations took strong measures to improve the quality of post-licencing inspection with Ho Chi Minh City revoking investment licences of 40 delayed property projects and Dong Nai terminating operations of 35 projects capitalised $143 million.

"Earnest in handling post-licencing inspection is important to ameliorate local investment climate," said Hoa.

Deputy head of Ba Ria-Vung Tau Planning and Investment Department's Foreign Investment and Cooperation Division deputy head Huynh Xuan Vinh said within 2010 the province revoked licences of 16 projects worth $230 million in total registered capital with most of the projects sought shifts in investment forms.

Binh Duong province came up with toughest measures with six tanning businesses having their licences withdrawn and 41 others had been put in the 'black list' for posing threat to the environment.

Deputy director of Binh Duong Planning and Investment Department Le Viet Dung said last year the province stopped granting licences to manufacturing businesses outside of industrial parks, except the services, construction, property and retail sectors. Businesses operating in industrial parks then have no alternative than applying for capital addition to expand production.

"This was to improve the quality of investments," Dung said.

Hai Au

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