There is a shift of FDI flows to central region: Insiders

Illustrative image. (Photo: VNA)

Hanoi (VNA) – Many provinces and cities as well as the central region of Vietnam have recently emerged as an attractive destination for foreign investors, according to experts.

Doan Duy Hung, General Director of the Vietnam Industrial Real Estate Portal, said that besides the prominent northern localities in attracting foreign direct investment (FDI) such as Bac Ninh, Bac Giang and Thai Nguyen provinces, the Red River Delta province of Thai Binh has become a bright spot in terms of FDI attraction.

He attributed the success to the fact that there has been a strong improvement in Thai Binh's investment environment and the province locates near Lach Huyen deep water seaport cluster in Hai Phong city. The construction of a coastal highway connecting Hai Phong and Thai Binh is also a reason.

Last year, Lien Ha Thai Industrial - Urban - Service Park in the province attracted four projects with a total investment capital of over 440 million USD, Hung said.

Other experts also believed that there is a shift of FDI investment from two major centres around Hanoi and Ho Chi Minh City to the central region due to the advantage of having many deep water ports and cheap rental prices which even only equal to one-third of that of the two cities, Tuoi Tre (Youth) newspaper reported.

According to Nguyen Van Toan, Vice Chairman of the Vietnam Association of Foreign Invested Enterprises, there will be a reallocation of the industry in the near future.

Once the investment environment is improved and infrastructure is upgraded, it is expected to fuel FDI attraction into the central region, he said.

Toan noted that there was a movement of labour from major economic centres such as HCM City, Binh Duong and Dong Nai provinces to central provinces during the COVID-19 pandemic. The fact that many workers have not returned has resulted in a shift in the FDI trend to limit the risks of labour shortages, he said.

"The pandemic has reshaped the investment trend at home and abroad. Available labour resources will be an advantage for any locality to attract investment," Hung was quoted by the newspaper as saying./.