August 15, 2018 11:52

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Ho Chi Minh City leads the country in attracting foreign investment

10:33 | 09/06/2018

VCN - In recent years, Ho Chi Minh City has always affirmed its leading economic role in the country with great investment attraction, especially in attracting FDI.

ho chi minh city leads the country in attracting foreign investment
Foreign enterprises are interested in investing in many fields in Ho Chi Minh City. Photo: T.D.

Continue to lead the way

According to a report by the Ministry of Planning and Investment, in the first five months of 2018, HCM City continues to be the largest FDI attraction in the country. Specifically, HCMC attracted 2.39 billion USD, accounting for 24.2% of total investment. In particular, FDI projects were granted new investment registration certificates for 330 projects, increasing 16.6% in number of projects and 14.7% in investment capital.

The sectors attracting the attention of investors were: Manufacturing and processing industries had the highest investment capital (32.4%) with 127.79 million USD, up 4.2% over the same period last year; Real estate business accounted for 31% with 121.66 million USD, increasing 3 times over the same period; Wholesaling and retailing, repairing automobiles, motorcycles, motorbikes and other motor vehicles accounted for 20% with 78.47 million USD; Scientific and technological activities accounted for 8.7% with 34.27 million USD... Korea is the country with the largest investment capital (28.2%) with 111 million USD; followed by Singapore accounting for 25.6% with 100.85 million USD, Norway accounted for 17.8% with 70.08 million USD; Japan accounted for 10% with 39.18 million USD; Hong Kong accounted for 7.7% with 30.5 million USD.

In addition, in the past five months, Ho Chi Minh City has also approved 882 cases where foreign investors carry out procedures to contribute capital, purchase shares, buy back the capital contribution from domestic enterprises, with registered capital equivalent to 1.19 billion USD, up 13.8% in number of projects and 61% in capital investment over the same period last year

This result is thanks to the efforts to drastically improve the investment environment, actively promote administrative reform, simplify and abolish unnecessary procedures, publicity, transparency and compliance with the law and promote the application of information technology in the process of handling administrative procedures of HCMC in the last five years. This has also been highly appreciated by FDI investors. Mr. Kim Heung Soo, Chairman of the Korean Business Association (Kocham), said that South Korea currently has 6,610 projects worth 58.1 billion USD in Vietnam, of which 1,200 projects are located in Ho Chi Minh City. The trade turnover of the two countries is estimated at 100 billion USD by 2020, showing that the trade between Vietnam and Korea is very positive. The result is thanks to Vietnam in general and Ho Chi Minh City in particular improving the business environment in recent times, and the impact of the Vietnam-South Korea Free Trade Agreement.

ho chi minh city leads the country in attracting foreign investment
Research and development of electronic chip at ICDREC (Saigon Hi-Tech Park). Photo: T.D.

Prioritize the transfer of FDI into the technology sector

According to experts, Ho Chi Minh City has the advantage of attracting investment projects in the field of technology thanks to its status as a leading economic center of Vietnam with good quality human resources. In addition, the city is concentrating resources to attract high-tech investment projects and implement the project "Developing Ho Chi Minh City into a Smart City in 2017-2020, with a vision to 2025".

According to Mr. Le Hoai Quoc, Head of Saigon Hi-tech Park (SHTP), the attraction of foreign investment in SHTP has been positive. In 2017, SHTP has granted new investment certificates to 30 projects with the total registered capital of 754.16 million USD, of which 10 projects are currently operating with an increase of 209.57 million USD. Until now, SHTP has 135 projects that have been issued valid investment certificates with total investment of more than 7 billion USD. In which, more than 10 leading corporations and technology companies in the world have invested in high-tech and added-value products such as Intel, Microsoft, Nidec, Jabil, Sanofi, Nipro, Datalogic, Samsung, Sonion... Among foreign investors, Samsung alone with the project of 2 billion USD in the production of household electrical appliances and televisions, has exported their products to about 65 countries. This Korean electronics group has also launched a 100 million USD R&D Center.

In order to receive more investment projects in the field of technology, SHTP identifies the key tasks in 2018, including: to attract investment into the Saigon Silicon City area, Science Space area, Built-in workshop area; to advocate the deployment of choosing investor to attract green projects and the worker accommodation area of 3.05ha. Support, connect many Vietnamese enterprises to participate in the supply chain of auxiliary equipment for global technology corporations, including Samsung. Continue to improve endogenous capacity and added value in the area by conducting research and development, training high-tech human resources and creating projects to serve the innovative program of HCMC. Develop a strategy for attracting investment into the Science and Technology Park. Along with that, complete the project to set up a SHTP Representative Office for Investment Promotion in Silicon Valley (USA).

In the spirit of improving the investment environment, in 2018 and in the coming years the city government will ensure consistency in the proposed policy and mechanism, such as: the city will reduce 50% of the time for receiving and checking customs records; reduce 50% of the time of actual inspection of goods. Shorten the time needed to settle the procedures related to the ownership of houses and land-attached assets from 57 days to 14 days for organizations and enterprises. In particular, the city has set up a special inter-sector working team to support and settle investment procedures, led by the Chairman of Ho Chi Minh City People's Committee – Mr. Nguyen Thanh Phong. As soon as a new investment project in the city occurs, the team will often have meetings to remove the enterprises’ difficulties. Ho Chi Minh City is reviewing from land fund planning to sector structure with the desire to attract high technology projects, building the smart city. So far, HCMC has 190 projects calling for focus on this development target.

By Thu Diu/ Ha Thanh