HCM City attracts over 1 billion USD in FDI in Jan-Feb (Source: VNA)

HCM City (VNS/VNA) - More than 1.02 billion USD of foreign direct investment (FDI) was registered for projects in HCM City in the first two months of the year, according to the Ministry of Planning and Investment.

In January, HCM City received registration for FDI of more than 745 million USD, the largest amount of FDI for any locality in the country.

It included 32.72 million USD investment in 68 new FDI projects, and additional investment of 4.7 million USD for 11 operational projects.

The city also approved 191 cases of foreign capital contributions to purchase shares of local businesses (from local shareholders) with total value of more than 452 million USD.

Le Thanh Liem, Vice Chairman of the municipal People’s Committee, said that in 2018 the city received more than 7 billion USD in FDI, including 6 billion USD registered in the form of capital contributions and purchases of shares of local enterprises.

The number and value of FDI in M&A (merger and acquisition) projects increased significantly in the last few years, from 1.5 billion USD in value in 2016 to 3.68 billion USD in 2017, and to 6 billion USD in 2018.

Investment in M&A projects totals more than 10 billion USD, accounting for 22 percent of the total FDI mobilised by HCM City since 1988.

Foreign investors favour M&As because of the simple investment procedures and favourable conditions, an official from the HCM City Department of Planning and Investment said.

M&A deals do not require investment registration certificates from investors, he added.

However, M&As also help foreign investors “avoid” procedures for investment licenses for these projects. The official asked agencies to issue legal documents for management of this investment resource.-VNS/VNA