(VEN) - Deputy Minister of Planning and Investment Dang Huy Dong said that Vietnam would shift from quantitative to qualitative forms of Foreign Direct Investment (FDI) attraction to increase the positive impact of FDI on the domestic economy. Following this strategy, provinces and cities in the southeast of Vietnam, which have led the country in receiving FDI projects and capital, expect to improve the quality of FDI and to make the most of FDI sources to accelerate economic restructuring and to increase the quality of their growth and economic competitiveness.
In the first 11 months of 2011 Vietnam granted investment licenses to 919 new FDI projects with total registered capital of US$9.91 billion, and permitted 324 ongoing projects to increase their investment capital by almost US$2.78 billion, marking a 50 percent increase from a year ago. In these 11 months, foreign investors registered US$12.69 billion in FDI in Vietnam, accounting for 84 percent of the total for the same value as the same period in 2010. Of this, the Hong (Red) River Delta took first place drawing more than US$5.33 billion in new and supplementary investment capital, accounting for 42 percent of total registered FDI capital in Vietnam. The Southeast took second place with US$5.2 billion and 41 percent. Tay Nguyen (the Central Highlands) took last place with merely 0.1 percent of total FDI capital.
As a leader in Vietnam in FDI attraction, Ho Chi Minh City had granted licenses to 321 FDI projects with total investment capital of US$2.4 billion by the end of November 2011, marking an 18.4 percent increase from a year ago. Foreign major investors in the city were Singapore, Malaysia, Hong Kong-China, the Republic of Korea, Japan, France, and the US. Ho Chi Minh City Planning and Investment Department Deputy Director Lu Thanh Phong said that the city had encouraged businesses to invest in finance, bank credit, insurance, trade, transport, warehouses, information technology, services, tourism, health, and education. The city also wants investors to develop high-tech and high-added-value sectors such as engineering, electronics, information technology, chemico-pharmaceuticals, rubber, and food/foodstuff processing.
Despite the global economic recession, Dong Nai Province drew more than US$770 million in FDI in the first 11 months of 2011. The province expected to attract investors in the areas of high technology, support industries, services, and technical infrastructure. To achieve this goal, Dong Nai needs to develop infrastructure and high-quality human resources. Dong Nai Province People's Committee chairman Dinh Quoc Thai said that the province is building a friendly, safe and effective investment environment. It also plans to create a transparent and good business ambience through stable political environment and society, environmental protection, good services for enterprises, businesspeople and workers, renewed administrative procedures, and incentives to encourage businesses to stay and grow in the province.
Together with Dong Nai, Binh Duong Province had received US$841 million in FDI by November 2011, of which US$401 million came from 72 new projects and US$440 million was supplementary investment capital of 108 ongoing projects. There are 1,125 FDI projects with total registered capital of almost US$8.48 billion in industrial zones in Binh Duong, accounting for 55 percent of all FDI projects and 58 percent of the amount of FDI investment capital in the province. Businesses leased 92ha of industrial zones and created more than 14,000 jobs in the province in 2011. Foreign investors have recently become more interested in the retail market in Binh Duong. Many foreign retail companies and groups have come to Binh Duong to seek investment opportunities such as the German group Metro Cash & Carry, Lotte Mart and GS Retail (Republic of Korea), Aeon (Japan), and Vinci (France). Binh Duong Province Planning and Investment Department Deputy Director Le Viet Dung said that despite global economic downturn, the favorable environment in Binh Duong had continued to attract FDI investors who wish to stay in the province. Moreover, FDI businesses have tended to invest in high-tech and competitive sectors, following the province's policy to promote sustainable industrial development.
With a large and adequate seaport system, Ba Ria-Vung Tau Province has become a destination for many investors. Bunge Asia CEO Christopher White said that his group was proud to build a world-class factory in the province. Ba Ria-Vung Tau Province Industry and Trade Department Director Tran Thi Huong said that the province had planned 43 industrial zones on almost 11,000ha for industrial development, and is trying to create sectoral linkages to develop logistics. In the short run the province will invest strongly in two logistic industries and set up a modern and complete seaport system. There are currently about 300 FDI projects with total investment capital of US$28 billion in Ba Ria-Vung Tau.
To keep up with changes in the economy in country, regionally and globally, provinces and cities in the country are looking to choose priority investment areas in order to draw FDI. This is particularly important for provinces and cities in the southeast since the region has attracted 61 percent of total FDI projects, accounting for 52.7 percent of total FDI registered capital in Vietnam./.
By Thanh Thanh
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