South prospers with FDI injections

14:39 | 18/03/2013
Vietnam’s southern hubs continue to charm foreign direct investment, especially in the services and manufacturing areas.

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Foreign direct investment in projects to southern economic development centres like Ho Chi Minh City, Dong Nai and Binh Duong reflected an upsurge in 2013’s first quarter against corresponding period last year.  An increasing number of international investors called on these venues in search of investment opportunities.

Accordingly, new committed capital at Ho Chi Minh City Export Processing and Industrial Zones Authority (Hepza) came to $48.2 million, of which $27.6 million was from foreign direct investment and more than $25 million from domestic investment, according to deputy head of Hepza’s Standing Committee Nguyen Tan Dinh.

Notably, there were mammoth projects among those lodging applications to Hepza.
“One project values at $95 million and another $92 million. We are considering investor applications and will make strides to be able to grant investment licenses in late 2013 first quarter,” Dinh unveiled.

In Ho Chi Minh City, in January-February 2013 local authorities granted 46 new investment certificates worth $45.7 million in total pledged capital to foreign investors. Compared to other locations in the country, new projects in this southern growth engine represented 46.5 per cent in projects and 8.6 per cent in capital value, according to the city’s Department of Planning and Investment.

Also, 17 existing projects asked for scope expansion with $45.4 million in supplemental capital, making 54.8 per cent in projects and 46.2 per cent in total supplemental capital compared to other locations.

This brought total investment capital, both committed and supplemental, in Ho Chi Minh City in the year ending February to more than $90 million, accounting for 14.5 per cent of the country’s total.

Of new investment projects, information-communications was most appealing to investors with 10 projects, then manufacturing and processing industry nine projects, wholesale-retail, auto, motorised vehicles repair as well as science-technology each seven projects. Just one property project got licensed in the first two months.

“FDI capital was centered into property sector during 2008-2010. Now foreign investors pin their hope onto services, trade, information communications technology and technical advisory,” according to a report by the Ho Chi Minh City Department of Planning and Investment.

In the first two months of 2013, foreign investors made investment ventures in 17 provinces and municipalities countrywide. Dong Nai led the way, attracting over $214 million in total committed and supplemental capital tantamount to 34 per cent of total investment capital during the period.

Binh Duong province ranked second with around $135 million or 21.4 per cent of total investment capital, according to the Ministry of Planning and Investment’s Foreign Investment Agency.

By Thanh Vu

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