Business

HCM City maintains leading position in FDI attraction

Since policies to attract foreign direct investment (FDI) were applied from January 1, 1988, Ho Chi Minh City has led the way in luring investment.
HCM City maintains leading position in FDI attraction ảnh 1At an automation practise workshop in Ho Chi Minh City's Hi-Tech Park (Photo: VNA)

HCM City (VNA) – Since policies to attract foreign directinvestment (FDI) were applied from January 1, 1988, Ho Chi Minh City has ledthe way in luring investment.

Statistics from the municipal People’s Committee show that after 30years of FDI attraction, the city has hosted 7,700 FDI projects with a total capitalof 44.87 billion USD, clinching the first position in the field.

In 2016-2018 (as of June 2018), the city lured 14.4 billion USD in newprojects and through deals with domestic ones, along with 2.14 billion USDinjected into 525 underway projects. The city also approved 6,340 investors to contributecapital and buy shares of Vietnamese firms to the tune of 7.27 billion USD.

Commenting on the role of FDI to the city, Nguyen Thanh Phong, Chairmanof the municipal People’s Committee said the city highly values the importantcontributions of foreign firms to its development.

From only 11.3 percent of Ho Chi Minh City’s GDP in 1995, FDIenterprises’ contributions rose to 22.9 percent of the city’s GDP in 2010 andsit at 17 percent currently, he noted.

In 1995, FDI made up 8.8 percent of the city’s total export revenue, butthe figure increased to 23.9 percent in 2010 and 55.9 percent currently, saidPhong.

The city leader said that along with helping the city transform itseconomic structure and create new production, distribution and consumptionmethods, FDI firms have also created jobs for 270,000 direct labourers andmillions of indirect ones. They have also contributed to transforming alow-income workforce to a qualified and high-income one.

According to the Ho Chi Minh City People’s Committee, FDI in the cityhas continued to rise in terms of capital and investment methods. The mostattractive areas for foreign investors include real estate, wholesale andretail, science-technology service and tourism.

As land rental demand is rising, real estate services continue to seebig investment at more than 40 percent of total FDI.

Su Ngoc Anh, Director of the Department of Planning and Investment ofthe city attributed the city’s success in FDI attraction to the fast growth of theeconomy and improved investment environment.

Anh said the city’s priorities to the development of science-technology,tourism and investment improvement as well as equal competition also make itmore attractive for foreign investors.-VNA
VNA
#foreign direct investment #FDI #Ho Chi Minh City #Nguyen Thanh Phong #FDI firms #Vietnam #Vietnam news #Vietnam News Agency Ho Chi Minh City
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