Ho Chi Minh City will assign priority to the development of industries having high scientific and technological content, industries using clean technology, energy-saving technology, new energy, renewable energy and having high productivity and value, biotech industry, and industries serving agriculture and rural development.
This information was revealed by Mr Lu Thanh Phong, Deputy Director of the city’s Department of Planning and Investment, at the fourth Trade and Investment Promotion Conference 2012 themed “HCM City economic transformation - economic restructuring paradigm” held recently in the city.
The Department of Planning and Investment said HCM City licensed 439 new investment projects with a total registered value of US$2.8 billion in 2011, up 17.07 percent in project and 48.91 percent in value over 2010. As many as 135 operational projects registered to hike their investment capital by US$468.51 million in the year, up 17.39 percent in project and 5.7 percent in value over 2010. Altogether, the city attracted US$3.27 million in 2011, up 40.67 percent year on year.
Processing and manufacturing industries attracted the most investment capital, with US$1.1 billion, followed by real estate (US$1 billion), trade (US$326 million), health (US$81 million), and construction (US$70 million).
Mr Lu Thanh Phong said Singapore was the biggest foreign investor in Ho Chi Minh City in 2011 with US$1.592 billion, followed by South Korea (US$392 million), British Virgin Islands (US$198.2 million), Taiwan (US$173 million), and Japan (US$154 million).
In the first three months of 2012, HCM City licensed 61 new projects with a combined registered capital of US$39.95 million. Thirteen projects were permitted to increase their capital by US$26.3 million. In total, the largest economic centre in Vietnam drew US$65.74 million of investment capital, which was mainly channelled into the processing industry, trade, science, technology and construction.
Mr Phong said HCM City will focus all resources on restructuring the economy, develop industrial products and services with high scientific and technological content, developing high-tech agriculture, shifting from extensive to intensive development paradigm, and ensuring quality, efficiency and sustainability of development.
HCM City will increase the proportion of services in the GDP while reducing the contributions of industry and construction and maintaining the ratio of agriculture. By 2015, services are expected to account for 57 percent of the city’s GDP, followed by industry (42 percent) and agriculture (1 percent).
At present, the city is concentrating on developing nine service sectors, namely finance - banking, insurance, commerce, transportation service, telecom - hi-tech, real estate, consulting, science, technology, research and development, tourism, health, and education; and four key industries, namely electronics - information technology, engineering, chemical - plastic - rubber, and food processing.
Many attending international business associations introduced their cooperation opportunities. The Western Canada business delegation said Western Canada led Canada’s growth in export, import, and food processing. “The world has known our famous products like meat, fish, poultry, corn and beer yeasts. Especially, the wheat that makes the bread you are enjoying comes from our countries,” said a representative.
This land has a high-level agriculture, world-renowned wine, foodstuffs and fertilisers. “We are ready to support you to develop high-tech agriculture,” he added.
At present, Canadian companies are shifting their focus to find business and investment partners in Southeast Asian countries, and Vietnam is attractive for its aquaculture, food processing and apparel. Western Canada also developed oil and gas, fertilisers, pesticides and agricultural equipment.
Canadian companies want to utilise resources, low-paid and skilled labourers to create low-priced quality products. Meanwhile, Vietnamese enterprises can acquire new know-how to enhance productivity and lower prices. The Canada Food Processors Association pledges to serve as a bridge and supporter for Vietnamese companies when they invest in the North American nation.
An official from the European Chamber of Commerce in Vietnam (EuroCham) said Vietnam will be a rapid growing market in the coming time and this will be an opportunity for Vietnam - EU cooperation. But, to make Vietnam an ideal investment destination, corruption needs to be addressed because European companies are very afraid of underground fees. Besides, the country needs to improve human resources to meet the demand of enterprises. At present, up to 65 percent of Vietnamese labours fail to meet requirements.
Ha Linh
Vietnamese
