HCM City-Magnet to Attract Foreign Investors

The Law on Foreign taking effect in Vietnam in 1987 boosted FDI wave into Ho Chi Minh City. Director of Ho Chi Minh City Department of Planning and Investment Thai Van Re said FDI has become an important investment source for the city’s socio-economic development in general and the nation in particular.

 

Since 1987, the city has always been the most attractive destinations in Vietnam to foreign investors. FDI has played a key role in the city’s areas of industrial and services sectors. To date, the city is now home to 3,141 valid FDI projects totaling US$25.68 billion. The services sector account for the highest rate, focusing on the real estate sector with 792 projects valued at US$7.2 billion and other services with 952 projects worth US$11 billion. The FDI investors’ participation in urban area, high-rise building, hotels, trade centres, supermarkets and health centres have helped meet the city’s increasing demand for socio-economic development and also encourage more investors to do business in the city. In terms of the industrial sector, the FDI sector has great contributions to the city’s export turnover via processed products and the appearance of industrial parks and export processing zones which lure skilled workers.

 

Thanks to the FDI inflow, HCM City has received modern technology and experience in business administration and job creation for thousands of workers. The FDI source also helps intensify competition in the local market, urging local firms to renovate technology and apply modern business methods. FDI projects contribute to improving the city’s infrastructure and people’s living condition. Moreover, HCM City sees improvements in education and health quality.

Speaking at the meeting, the municipal committee’s Chairman Le Hoang Quan said that these achievements were thanks to the city’s efforts to facilitate the legal system and business and investment policies. The city’s economic renovation policies have become more comprehensive; meanwhile, the local high economic growth has brought confidence for FDI investors. In addition, the municipal authorities have built a sustainable strategy to lure FDI. The city has exploited and taken full advantages of abundant and qualified work force, big developing market and completed infrastructure system to attract more investors. HCM City is speeding up administrative reform process, fight against corruption and maintain political stability and social security.

 

However, everything has two sides. Besides advantages, the FDI wave results in disadvantages for HCM City. This requires the city’s proper policies to deal with the situation. In the coming time, the city will work out a specific FDI attraction policy. It will concentrate on land preparation, human resource training and investment environment improvement.

 

Assessing the city’s efforts in FDI attraction for over two past decades, Y.T. Young, general director of Tan Thuan Ltd. Co. said: “Not only investing in production facilities, we do not hesitate to pour money in housing, training centre projects, entertainment and healthcare services for workers. This shows our investment pledge for the city. The southern metro should pay more attention to infrastructure development as well as administrative reform to make its investment climate more attractive, said the European Chamber of Commerce in Vietnam Alain Cany.

 

Also at the conference, Deputy Prime Minister Hoang Trung Hai granted the first-grade Labour Medal for the municipal People’s Committee, the Department of Planning and Investment and the industrial park and export processing zone management board. On this occasion, the first ten foreign-invested companies also received the prime minister’s certificate of merit for its outstanding achievements and contributions to the city’s development. Furthermore, the city also granted certificate of merit for seven local agencies and 58 foreign-owned firms for its efforts.

 

Chairman Le Hoang Quan expected that the city will welcome more big groups in the time to come. He highlighted that “Foreign entrepreneurs are an important part of the city’s economy and their successes are also the city’s. The local authorities will offer more favourable conditions for investors”.