With only more than 800 million USD in its FDI so far this year, it would be hard for HCM City to achieve the target of attracting 8.4 billion USD in FDI this year, experts said.
In May alone, the city attracted only 32 new investment projects totalling 380 million USD, a year-on-year drop of 50 percent in capital, according to the municipal Planning and Investment Department.
Noteworthy, FDI poured into the city’s key areas such as the Tay Bac-Cu Chi and the hi-tech zone has seen a slowdown. In the Thu Thiem new urban area, although many investors show interest, none of projects have been signed.
Deputy Head of the Thu Thiem new urban area’s management board Nguyen Le Dung blamed the situation on the unsuitability between the zone’s master plan and the investors’ projects.
Economist Dinh The Hien said that the first half of the year is just the time for Vietnam and other countries to confirm their economic recovery. Therefore, “it is too early to be pessimistic about FDI’s growth in HCM City,” Hien stressed.
To ease experts’ concerns and boost the city’s investment, the municipal Planning and Investment Department would offer an important project for tender in the second half of the year, according to deputy director Lu Thanh Phong.
The municipal People’s Committee is also considering to approve a list of priority projects calling for investment in processing industry, forwarding services, information and communications service.
On the city’s FDI attraction, Secretary General of the Republic of Korea (RoK) Chamber of Commerce Hong Sun said HCM City is always a market attractive to RoK investors, especially those in electronics and hi-tech sectors.
Around 100 new RoK investors will come for business purposes in the city from now until the end of the year, he said.
Investors are showing signs to return to the city, said representatives of the HCM City export processing and industrial zones authority (HEPZA).
However, Hien warned that the city’s disbursement rate may be low this year due to the impact of the European economic instability./.
In May alone, the city attracted only 32 new investment projects totalling 380 million USD, a year-on-year drop of 50 percent in capital, according to the municipal Planning and Investment Department.
Noteworthy, FDI poured into the city’s key areas such as the Tay Bac-Cu Chi and the hi-tech zone has seen a slowdown. In the Thu Thiem new urban area, although many investors show interest, none of projects have been signed.
Deputy Head of the Thu Thiem new urban area’s management board Nguyen Le Dung blamed the situation on the unsuitability between the zone’s master plan and the investors’ projects.
Economist Dinh The Hien said that the first half of the year is just the time for Vietnam and other countries to confirm their economic recovery. Therefore, “it is too early to be pessimistic about FDI’s growth in HCM City,” Hien stressed.
To ease experts’ concerns and boost the city’s investment, the municipal Planning and Investment Department would offer an important project for tender in the second half of the year, according to deputy director Lu Thanh Phong.
The municipal People’s Committee is also considering to approve a list of priority projects calling for investment in processing industry, forwarding services, information and communications service.
On the city’s FDI attraction, Secretary General of the Republic of Korea (RoK) Chamber of Commerce Hong Sun said HCM City is always a market attractive to RoK investors, especially those in electronics and hi-tech sectors.
Around 100 new RoK investors will come for business purposes in the city from now until the end of the year, he said.
Investors are showing signs to return to the city, said representatives of the HCM City export processing and industrial zones authority (HEPZA).
However, Hien warned that the city’s disbursement rate may be low this year due to the impact of the European economic instability./.
