Ho Chi Minh City lures $900 million in FDI in first four months

May 10, 2024 | 11:37

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In the first four months of 2024, a total of $915.6 million in foreign direct investment (FDI) capital flowed into Ho Chi Minh City, down 6.5 per cent against the same period last year.

Ho Chi Minh City lures $900 million in FDI in first four months

According to the latest report by Ho Chi Minh City Department of Planning and Investment, 652 foreign investors increased their capital contributions and share purchases totalling $713.5 million, down 5.6 per cent in deal count but up 68.3 per cent in deal value against the same period last year.

South Korea and Singapore accounted for the largest proportion of capital contributions and share purchases at 40.9 per cent and 33.9 per cent, respectively.

The report pointed out that 357 new projects were granted investment certificates in the given period, up 16.3 per cent from a year earlier. However, their total investment only reached $129 million, down 24.3 per cent on-year.

FDI inflows into the city in the first four months mainly came from capital contributions and share purchases, as the city lacks land to attract large investment projects.

For instance, in Saigon High-Tech Park, land reserved for attracting projects in the fields of electronics, microchips, and semiconductors only had an area of 0.5–3 hectares per project.

A domestic enterprise authorised by US investors has recently proposed that Ho Chi Minh City People's Committee establish an Innovation Technology Park covering 350-400ha specialising in chip production and testing.

However, with limited land, it will be difficult to fulfill investor demands.

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