Eighteen years after the promulgation of Foreign Investment Law, the provinces in the Mekong Delta have made great efforts to attract investors. However, FDI in the region is the lowest in Vietnam. By the end of 2005, there were only 194 projects with investment capital of over US$1.48 billion or 3.2 per cent in projects and 2.9 per cent in capital of the total FDI in Vietnam.
Why?
Though 2005 witnessed the rise of FDI in Vietnam with some US$6.3 million (according to the Ministry of Planning and Investment), the Mekong Delta remains in low profile with only 16 projects and over US$45 million. Since 2000, Can Tho city has been able to attract no more than 5 projects a year. During the period of 1988-2001, no FDI project was attracted by Soc Trang and Bac Lieu provinces in 13 years, likewise Vinh Long and Tra Vinh provinces in 12 years, Dong Thap and Ca Mau in 9 years. The stumbling-block is investment environment, infrastructure and human resources.
The poor infrastructure compelled exporters to transport shrimps from the Mekong Delta up to Ho Chi Minh City and ship to foreign markets, fruits via North Vietnam to China (30 per cent damaged), rice and meat also via Ho Chi Minh city. The loss is some hundred million US dollars a year. The Mekong River remains without an infrastructure network, except some ports capable of receiving ships of 5,000-10,000 DWT. With better infrastructure, no doubt, more investors will come to the Mekong Delta.
To be really attractive
In 1988, Foreign Investment Law was enforced and opened up new opportunities for the Mekong Delta. Preferential treatment, investment encouragement policy and infrastructure have been developed to attract investors. So far, 111 industrial zones and centres have been built in the Mekong Delta.
Long An planned 22 industrial zones (IZs) with some 8,200 ha including six IZs already established. The province is leading the Mekong Delta in FDI with 97 projects and registered capital of over US$722 million. With the advantage as the gate door of the Mekong Delta and next to Ho Chi Minh City, Long An has accelerated the administrative reform, improved the investment environment and consequently doubled the FDI of 2002.
Mr. Pham Thanh Khon, Deputy Director of Planning and Investment Department of Vinh Long province, said that in the past, the province could not get a single FDI project in 12 years. But after the completion of My Thuan bridge and the application of preferential treatment such as reduction and exempt of land rental for 3-5 years, 50 per cent reduction in advertisement on local mass media, support for pre-feasibility and feasibility studies, reduction of time and fee for the establishment of enterprises. With two industrial zones in Hoa Phu and Binh Minh, Vinh Long has attracted 8 FDI projects and registered capital of USD35.5 million. In the future, the province will attract more FDI with better infrastructure and the Can Tho Bridge built over the Hau River.
In early years, while other provinces could not attract any FDI project, Can Tho City already had several projects. However, by the end of 2005, it had only 41 FDI projects with registered capital of US$158 million, ranking 3rd in the region after Long An and Kien Giang. It is expected that in 2008, when the Can Tho Bridge is completed, the airport and Cai Cui river port in operation, the province can attract more foreign investors.
According to foreign experts, it is necessary to establish investment promotion centres and hire foreign consultants to develop promotion programmes. For instance, last June, Can Tho sponsored “Investment Forum” with clear messages:”Making the Mekong Delta a common development area; investors are most welcomed; come and make joint efforts to develop the unique Mekong Delta; be a leading enterprise in the Mekong Delta”.
Huong Thao
Vietnamese
