Vietnam’s southeastern region remains an attractive destination for foreign direct investment (FDI) thanks to quality improvement in 2013.

According to the Vietnam Economic News, this shows the confidence of foreign investors in the most dynamic economic region of the country, which includes Ho Chi Minh City and the provinces of Dong Nai, Binh Duong, Ba Ria-Vung Tau, Tay Ninh, and Binh Phuoc.

Holding the FDI attractive position

Last year, Binh Duong surpassed its FDI attraction plan and lured 1.32 billion USD in 249 FDI projects, including 125 new projects with combined capital investment of 818 million USD and 124 additional capital projects with total increased capital of 501 million USD. Currently, the province has 2,209 FDI projects with total investment of 18.72 billion USD in hi-tech industries, trade, services, and urban development.

Dong Nai also attracted more than 1.6 billion USD last year in 151 FDI projects, including 78 new projects with combined capital investment of 834 million USD and 73 additional capital projects with total increased capital of 773 million USD. To date, Dong Nai has registered 1,381 FDI projects with total investment of 24.319 billion USD. There are already 40 countries and territories investing in Dong Nai.

According to Director of Dong Nai province’s Department of Planning and Investment Bo Ngoc Thu, most newly licensed FDI projects are in the high-tech fields, support industries, and services. Dong Nai will consider removing projects that are labour-intensive, technologically backward and with risks of environmental pollution.

Last year, Ba Ria-Vung Tau province granted investment certificates to 12 projects with a total registered capital of 125 million USD, and capital increase certificates to five projects with total increased capital of 60 million USD. The province has registered 296 FDI projects with total registered capital of 27.107 billion USD.

As one of the country’s major socio-economic centres, Ho Chi Minh City attracted 2 billion USD in FDI last year. “The amount signals a recovery in FDI inflows, reflecting the confidence of investors in HCM City’s investment environment,” Director of the municipal Department of Planning and Investment Thai Van Re said.

Tay Ninh registered 17 FDI projects last year with total investment capital of 503.98 million USD. Currently, the province has 207 FDI projects with total registered capital of more than 2 billion USD. FDI enterprises contributed to the province’s 1.85 billion USD exports, up 17 percent compared with 2012.

Binh Phuoc attracted 11 FDI projects last year, with total investment capital of 80 million USD. It is located in a favorable position for international trade between Cambodia, Laos, Thailand, and Vietnam and has eight industrial parks with total area of 5.240ha. The province’s 28.360ha Hoa Lu Border Gate Economic Zone has also been approved, opening up opportunities to attract FDI in the future.

Improving the efficiency and quality of FDI attraction

Authorities at all levels in the region have continuously monitored the FDI situation and adopted solutions in order to create the most favorable conditions for enterprises in the process of the implementation of FDI projects.

Along with the improvement in FDI environment and incentives, the region has also focused on improving the quality of FDI inflows into hi-tech industries that are less labour-intensive, non-polluting and environmentally friendly.

In order to attract FDI, the region should build economic development strategies to gradually participate in global value chains in order to attract more multinational companies and large corporations on account of spillover benefits from the world market.

In addition, the synchronised and modern development of infrastructure systems to promote the exchange of goods within and beyond the region is also an important condition for attracting investment as the majority of foreign investors are waiting for the completion of the transport infrastructure and administrative reforms.

With the comparative advantage and available conditions, the region aims to integrate with other regional economies on the basis of modern infrastructure system and advanced science and technology platform.-VNA