Business

HCM City draws over 2.86 bln USD in IZ investment during 2020–2025

Fifteen hi-tech projects (6% of the new projects) have combined investment of 859.87 million USD, or 44.17% of the total newly registered capital.

At an FDI company in Ho Chi Minh City. (Photo: VNA)
At an FDI company in Ho Chi Minh City. (Photo: VNA)

HCM City (VNA) – Investment inflows into export processing and industrial zones (IZs) in Ho Chi Minh City have surpassed 2.86 billion USD during the 2020–2025 period, equivalent to 114.59% of the initial 2.5 billion USD target, according to the HCM City Export Processing and Industrial Zones Authority (HEPZA).

Of the total, foreign investment has exceeded 935.3 million USD, including 75 newly licensed projects with over 334.3 million USD in capital. Domestic investment reached over 45.43 trillion VND (roughly 1.9 billion USD), including 202 new projects worth 37.89 trillion VND.

Le Van Thinh, head of HEPZA, said on June 16 that the period has seen a clear shift toward high-tech and value-added sectors such as software, telecommunications, electronics, pharmaceuticals, precision mechanics, and electrical equipment.

Notably, 15 hi-tech projects (6% of the new projects) have combined investment of 859.87 million USD, or 44.17% of the total newly registered capital.

The influx of new projects has also created over 26,000 new jobs, bringing total employment in the zones to more than 257,700. On average, over 85% of workers have undergone formal training, and many companies now maintain university-level qualification rates exceeding 90% among employees, Thinh added.

Efforts to support start-ups and key product development focuse on rubber – plastic, mechanics – automation, and food processing sectors. Land is being prioritised for hi-tech and environmentally friendly projects, with plans to establish specialised industrial zones dedicated to these industries.

Under the city's development master plan for 2021–2030, with a vision to 2050, the current 23 export processing and industrial zones covering 5,900 ha will be maintained. An additional 2,465 ha is earmarked for 10 new IZs, bringing the total area to 8,369 ha across 33 zones.

To further attract investment, HEPZA has overhauled its management model, strengthened the "single-window" administrative framework, and cut administrative processing times by 30% through streamlining its organisational structure and workforce./.

VNA
#Investment #export processing #industrial zones #Ho Chi Minh City #HEPZA Ho Chi Minh City
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