FDI: Driving Force for Thua Thien Hue Province

4:21:33 PM | 17/4/2007

“Though modest in size, FDI has played an important role in the development of Thua Thien Hue. The province now focuses on attracting FDI for efficient development”, said Mr Le Dinh Khanh, Deputy Director, Thua Thien Hue Planning and Investment Department (DPI).
While non-State enterprises are weak in size, capital and competitiveness, strong FDI enterprises like Hue Beer (Huda) and Luks are essential for the economic growth of the province. In 2006 alone, Hue Beer and Luks Cement have attained turnover over VND1,350 billion and contributed some VND460 billion, over 35 per cent of local budget revenue. In 2007, in addition to increased investments of existing FDI enterprises, Thua Thien Hue will also have new FDI investors.
Good signs
The investment of Alcan group in Chan May served as a breakthrough, heating up economic development in 2006. Alcan Vietnam Co. Ltd (Canada) with registered capital of over US$4 million, engages in manufacturing and assembling equipment for export industries. Shortly after receiving investment license, the enterprise set up business activities creating nearly 1,000 jobs, attaining turnover of over VND107 billion and accelerating tourism and services in the Lang Co – Chan May area. The enterprise has contributed over 65 per cent of export turnover of the province and will increase investment capital to over US$6 million.
FDI role
According to Thua Thien Hue DPI, the province has nearly 40 FDI enterprises with total registered capital over US$300 million and implemented capital of US$170 million. In 2006 alone, four FDI enterprises were licensed with registered capital over US$9.2 million. In addition to Hue Beer, Luks and Alcan, other enterprises are also operating efficiently such as Thanh Lich Riverside Hotel, Quinmax Co. Ltd, HE Electronics, Hue Foodstuff, Pulp joint venture, Kinh Thanh Hotel, and Chaiyo AA.
In 2006, FDI enterprises attained turnover over US$150 million, contributing VND470 billion, or nearly 40 per cent to provincial budget revenue, and created a headway in export with turnover of over US$150 million, 3/4 of the province’s total export turnover.
Driving force
Presently, the province has over 2,000 enterprises in all economic sectors, double the number five years ago. However, they remain small in size and capital, and poor in competitiveness. In such conditions, FDI enterprises with advantages in capital, technology and management skill can accelerate local economic development.