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HCMC's 1H FDI at $2.15bn

Released at: 19:14, 19/06/2017

HCMC's 1H FDI at $2.15bn

Night view of HCM City from Bitexco Financial Tower. Photo:en.wikipedia.org

Manufacturing and processes led the way in new FDI during the first half of the year, with South Korea being the largest source overall.

by Luong Nhi

Ho Chi Minh City attracted $2.15 billion worth of foreign direct investment (FDI) in the first half of this year, double the figure recorded in the same period last year, according to the Ho Chi Minh City People’s Committee.

There were 340 newly-licensed projects in the city, with nearly $346 million in investment, while 915 projects added capital and bought shares in the city’s enterprises, with capital totaling $1.15 billion.

Manufacturing and processing industry attracted the most newly-licensed FDI, with 33.1 per cent, or $124 million. Wholesale, retail, car repair, motor vehicles, and motorcycles accounted for 29.4 per cent, or $110 million, while information technology accounted for 15 per cent, or $56.23 million.

South Korea dominated in terms of FDI source, with 26.9 per cent of total investment, followed by Japan with 14.1 per cent, Malaysia 12.1 per cent, and Singapore 11.1 per cent.

The Ho Chi Minh City Department of Planning and Investment is introducing online services for foreign enterprises when adding capital or buying shares in the city’s enterprises. Ms. Nguyen Thi Thu Hoa, Deputy Director of the department, said the city has accepted 612 documents online. The department is now building the second stage of its online registration process for foreign investors, in which other procedures will be added.

The city is targeting attracting major groups and prestigious companies in researching and training activities in the high-tech field.

Exports of electronic products and components in the city increased nearly 80 per cent in the first half and are expected to contribute up to one-third of the city’s total export turnover this year.

Ho Chi Minh City led in FDI attraction in May, with $44.55 billion, or 14.7 per cent of Vietnam’s total. It was third in the first five months, with capital of $1.39 billion, or 11.4 per cent the total, following northern Bac Ninh province, with $2.76 billion, and southern Binh Duong province with $1.64 billion.

The city has recently adopted many policies to create favorable business and investment conditions, in particular establishing a public-private partnership (PPP) board to attract more capital to infrastructure development, as it needs VND850 trillion ($37.4 billion) from 2006 to 2020 while it can only fund 20 per cent.

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