Clock ticking for southern localities to fulfil FDI attraction targets

The clock is ticking for many southern localities to complete their FDI attraction goals. (Photo: VNA)

Hanoi – While some southern localities have fulfilled their targets for FDI attraction, the clock is ticking for many others to complete their goals since there are only 1.5 months left to the end of 2023.

With low supply of industrial land, Ho Chi Minh City did not set ambitious targets in luring foreign capital.

According to the Ho Chi Minh City Export Processing and Industrial Zones Authority (HEPZA), foreign investors funneled nearly 950 million USD into the southern hub’s industrial parks during January – October, or 172 per cent of the yearly plan. Of the total, some 184 million USD was poured into the city in October, a year-on-year rise of 28 per cent.

Dong Nai, another FDI magnet, realised its attraction target right in September after drawing 120 foreign-invested projects worth nearly 940 million USD in the first nine months, surpassing the yearly plan by around 34 per cent. The province has become more attractive to foreign enterprises thanks to its favourable geographical location, sound administrative reform and infrastructure upgrade.

In the meantime, others in the southern key economic region are racing against time to secure more foreign investment.

Some 1.3 billion USD in foreign capital was registered in Binh Duong, another industrial hub in the south, so far this year, or 70 per cent of the set plan. However, the target of 1.8 billion USD for the whole year is within reach of the province as many large corporations have announced their plans to increase investment in the locality.

In recent years, FDI attraction in Binh Duong has exceeded its set goals. According to statistics from the provincial People’s Committee, the province got 9.56 billion USD in foreign investment during 2020-2023, higher than its target of around 9 billion USD. By 2025, FDI attraction in the province is expected to reach 13.2 billion USD.

Meanwhile, Director of Department of Planning and Investment of Ba Ria – Vung Tau province said the province is likely to fulfill 78 per cent of its goal this year due to global economic headwinds, sluggish progress on land auction and incomplete transport infrastructure.

Since many US and European firms have come to look into investment climate as well as propose investment in the southern localities in recent time, FDI attraction in the region is said to scale up in the coming time.

Firms hold chances to boost supporting industries amid FDI inflows As Vietnam is emerging as a magnet for foreign businesses, domestic companies now have numerous opportunities to join global supply chains and develop supporting industries.

Industrial real estate witnesses robust growth in Q3 Vietnam's industrial real estate sector has shown remarkable signs of growth in the third quarter of 2023, with substantial new project launches contributing significantly to the market.

Both FDI inflows and disbursement raising Over the first ten months, total foreign direct investment (FDI) inflows and disbursement reported an increase of 14.7 per cent and 2.4 per cent, respectively.

Samsung cements status as premier foreign investor in Vietnam In a meeting with Vietnamese Prime Minister Pham Minh Chinh on October 31, Park Hark Kyu, president and CFO of Samsung Group, highlighted Vietnam as an essential global economic player, expressing the company's intention to maintain its position as the largest foreign-invested enterprise (FIE) in Vietnam for some time.

Coherent Corporation eyes Dong Nai for high-tech investment ventures Coherent Corporation is targeting advanced optics and semiconductor production in the southern province of Dong Nai.