FDI projects provide impetus for Quang Nam’s economy
The inflow of foreign direct investment (FDI) into the central province of Quang Nam has boosted the local socio-economic development during the process of industrialisation and modernisation.
Inside a foreign direct investment factory in Quang Nam (Photo: VNA)
Quang Nam (VNA) – The inflow of foreign direct investment (FDI) into the central province of Quang Nam has boosted the local socio-economic development during the process of industrialisation and modernisation.
When the province was re-established in 1997, it only attracted 13 FDI projects which registered a total capital of nearly 230 million USD. However, after more than 20 years, the province secured 5.78 billion USD in 166 projects.
Among 26 countries and territories investing in Quang Nam, the Republic of Korea leads with 41 projects valued at 274.5 million USD. China is the second largest investor with 35 projects, and Japan third with 14 projects.
FDI capital has helped accelerated economic structure shifting to industry-construction and services. Local manufacturing-processing industries lured 95 projects with registered capital of 948 million USD, accounting for 17 percent of the total foreign direct capital. Meanwhile, foreigners poured some 4.5 billion USD, or 81 percent of the total FDI, into 45 tourism-service projects.
By the end of 2017, FDI enterprises had disbursed some 5.2 trillion VND (221.25 million USD), 104 times more than in 1997, accounting for 21.62 percent of the total investment in the province. The FDI sector’s contribution to gross regional domestic product (GRDP) increased from 1.64 percent in 1997 to 10.7 percent 10 years later.
FDI companies’ State budget contribution has increased substantially over the years, with 977.8 billion VND (41.6 million USD) recorded in 2017 compared to only 6.6 billion VND (280,800 USD) in 1997. It has also help advance technology, form new products and create jobs.
In addition, the foreign-invested sector has helped Quang Nam integrate deeper into the global economy by enhancing the transfer of state-of-the-art technologies, helping improve industries like automobile production, high-tech products and engineering.
One notable project is Thaco Mazda automobile manufacturing plant, the biggest and most modern Mazda factory in Southeast Asia. Invested in by Truong Hai Auto JSC and Japan’s Mazda group, the plant covers 30.3 hectares in Chu Lai Open Economic Zone and is equipped with cutting-edge technology.
The massive influx of investment projects requires local authorities to improve the business climate, including planning, infrastructure and simplification of administrative procedures, among others.
The province has already formed Chu Lai Open Economic Zone, Nam Giang Border Gate Economic Zone and various industrial parks. It has also improved transport infrastructure, like building Da Nang-Quang Ngai highway, upgrading Chu Lai airport and opening Japan-Chu Lai international maritime route.
Furthermore, Quang Nam’s Provincial Competitiveness Index (PCI) has been in top 10 of the country, showing local authorities’ efforts to enhance the business environment.-VNA
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