10:26:07 PM | 18/11/2013
With its potential and advantages, actively promoting investment with right policies and receiving enthusiastic support from local government, Ba Ria - Vung Tau is becoming an attractive investment destination for FDI enterprises, particularly enterprises from Taiwan. Taiwan is currently ranked third in foreign investment in Ba Ria - Vung Tau. This is also one of the main markets in the investment promotion programme of the province in 2014.
In recent years, many Taiwanese businesses have stepped up the implementation of investment projects in Ba Ria - Vung Tau. Recently, in October, 2013, in My Xuan A2 Industrial Zone, Sumikin Vietnam China Steel Corporation inaugurated a rolled steel plant with the capacity of 1.2 million tonnes per year. The main products of the plant include cold rolled steel, galvanized steel, electrical steel sheets, pickling steel, oil-covered steel provided for manufacturing industry, steel pipes, machinery, automotive spare parts and appliances. This project is the biggest invested project of CSC Steel Group, accounting for 51 percent of the total investment capital. If going into operation with 100 percent capacity, the plant will increase the total capacity of cold rolled steel plant in Vietnam to about four million tonnes per year, meeting domestic and export demand, and contributing to deficit reduction of the steel industry. Commenting on investment environment in Ba Ria - Vung Tau, Mr Tsou, Chairman of CSC Group said that with diverse potential and advantages, synchronized infrastructure systems and favourable incentives, Ba Ria - Vung Tau is truly a promising destination for Taiwanese investors. All investors in Taiwan, after coming to Ba Ria - Vung Tau, are convinced by the commitment of provincial leaders who have always been aware of the importance of FDI and ODA capital as well as the innovation and diversification of the province's investment promotion methods.
According to the Vietnamese Ministry of Planning and Investment, Taiwan ranked third among countries and territories investing in Vietnam (after Japan and Singapore). From 1988 to September 2013, Taiwan had invested in 2,262 projects in Vietnam with a total capital of US$27.5 billion. Particularly in Ba Ria - Vung Tau, Taiwanese firms see huge opportunities from the preferential policies for investment such as low land costs, tariff incentives, low labour costs and huge market potential. Therefore, they have had a strong investment strategy. The main invested sectors of Taiwan include processing and manufacturing, of which textile industry, leather industry, household furniture manufacturing reach high proportion, thus contributing to solve the employment of thousands of local workers and significantly to the revenue budget of the province.
According to the assessment of Taiwanese investors, thanks to convenient port and transportation, abundant labour resources and appropriately invested infrastructure, Ba Ria - Vung Tau has always satisfied Taiwanese investors. Besides, open investment environment is also a compelling factor for Taiwanese businesses to have long-term commitment to the province.
Seizing the opportunity, Vietnam is having positive policies to integrate into the global economy. Steel groups of Taiwan have been targeting the markets of Vietnam, Southeast Asian countries and India. A good supply of steel products will create materials for the supporting industry. Textile enterprises in Taiwan are eyeing upstream and midstream investment. Mr Nguyen Anh Triet, Acting Director of the Provincial Industrial Zone Authorities, said that Taiwan ranked third in foreign investment in the province’s industrial zones. Currently, there are 16 valid projects of Taiwan with a total capital of US$1.5 billion. Accordingly, Taiwan will be a potential market that Ba Ria - Vung Tau will boost investment into the future. Significantly, the province will work with Formosa International Development Co., Ltd. to attract steel producers of Taiwan.
Currently, Ba Ria - Vung Tau is implementing economic restructuring, which focuses on the exploitation of ports, logistics and supporting industries. According to Deputy Chairman of the Provincial People’s Committee Ho Van Nien, in the near future, the province will pay special attention to the development of supporting industries, the generation of provincial exports and the creation of advantages for port development. A supply of steel products will create materials for supporting industry development. Therefore, in addition to the potential markets such as Japan and Korea, Ba Ria - Vung Tau is promoting investment promotion programmes in Taiwan to attract some Taiwanese businesses to invest in the production of auto and motorcycle parts.