Southern region takes lead in attracting FDI

Wednesday, 2016-04-13 12:00:51
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The electronic motor production line of the Japanese-funded Mabuchi Motor Vietnam in southern Dong Nai province's Bien Hoa 2 Industrial Zone. (Credit: VNA)
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NDO/VNA – The southern region has received US$1.7 billion worth of foreign direct investment (FDI) in the first quarter of 2016, according to the Ministry of Planning and Investment’s Foreign Investment Agency.

This value accounted for 51.6% of the total FDI registered in the country, making the region the leading performer in terms of FDI attraction. The agency said in its recent report that the positive results were due to the region’s huge potential in developing industries such as hi-tech, IT, oil and gas, in addition to several services in banking, finance and tourism sectors.

During the three-month period, 246 new foreign-invested projects received licences while 305 existing projects were approved to raise capital in the region, which include HCM City, Ba Ria – Vung Tau, Dong Nai, and Binh Duong, in addition to Tay Ninh and Binh Phuoc.

Among large projects, included is a US$115 million steel mill emissions processing facility, developed by Zincox Resources PLC from the United Kingdom in Ba Ria- Vung Tau Province; a US$55 million garment factory, invested by Brunei’s Promax Textile Vietnam Co in Dong Nai Province’s Nhon Trach 3 Industrial Zone and a Brunei-funded furniture manufacturing project, worth US$38 million, in Giang Dien Commune, Dong Nai.

There were 41 countries and territories making investments in the region in the reviewed period. Of them, Japan ranked first with US$309.3 million or equivalent to 18.1% of the region’s total FDI. The Republic of Korea and Brunei came second and third with about US$270 million, or 15.7%, and US$148.2 million, or 8.6%, respectively.

Among six localities, Dong Nai attracted the main share of FDI with US$585.4 million, making up 34.2% of the region’s total FDI. It was followed by Binh Duong with US$376 million, or 22%, and HCM City with US$354.2 million, or 20.7%.

From January to March, the manufacturing and processing sector was the most profitable, attracting US$1.29 billion, totalling 76% of FDI pledged in the region. Water supply and waste treatment ranked second with US$115 million while wholesale and retail came in third with US$105.7 million.