HCM City gets ready for new foreign investment wave post-COVID-19

Update: 19:08 | 25/05/2020
Vietnam and Ho Chi Minh City in particular have remained appealing to foreign investors who are continuing to pour capital into the southern economic hub despite the COVID-19 pandemic.
hcm city gets ready for new foreign investment wave post covid 19 HCM City firms expect further support to overcome difficulties
hcm city gets ready for new foreign investment wave post covid 19 Ha Noi, HCM City resume bus services from May 4
hcm city gets ready for new foreign investment wave post covid 19
Illustrative image. (Photo: Zing)

The municipal Statistics Office reported that from the beginning of this year to April 20, the city attracted more than 1.3 billion USD in foreign direct investment (FDI), including newly-registered and added capital and share purchases.

According to the HCM City Export Processing and Industrial Zones Authority (HEPZA), nearly 118 million USD worth of investment has been poured into HEPZA so far this year, up 86 percent year-on-year.

Of the total, FDI reached 65.98 million USD, up nearly 2.58 times against the same period last year.

With the favorable premise, HCM City is expected to welcome a big wave of investments post-COVID-19 when investors from the US, Europe and Japan move their production lines to Vietnam, said Nguyen Van Be, Chairman of the HEPZA Business Association.

Stephan Pudwill, Vice Chairman of Techtronic Industries that has invested in the Saigon High-Tech Park, commended the city’s good human resources, infrastructure and logistics, good-quality suppliers, and local authorities’ commitment to supporting investors.

Meanwhile, Cleandye Group from the Netherlands said it has received assistance from local agencies when investing in the Hiep Phuoc Industrial Park in Nha Be district.

To welcome the new investment wave, Tran Hoang Ngan, head of the HCM City Institute for Development Studies, suggested setting standards for investors, saying priorities should be given to high-tech projects.

High-tech development can create a ripple effect on most industries, thus creating high-quality products, he further explained.

Dao Xuan Duc, deputy head of HEPZA, proposed establishing specialized industrial parks and attracting more investment in the production of materials, especially those used in major industrial sectors.

Besides, it is necessary to set up zones for support industries using the State budget to regulate land lease prices and lure investors in sectors targeted by the city and the Government, he said.

Deputy Director of the city’s Department of Industry and Trade Nguyen Phuong Dong urged existing industrial parks to try and attract intensive investment towards sustainable development.

They should prioritize businesses with cutting-edge technologies and high added values while improving export capacity, contributing to socio-economic development towards industrialization, modernization and urbanization in outlying areas, the official said.

The municipal People’s Committee has assigned the Department of Planning and Architecture to coordinate with HEPZA and relevant agencies to review the planning of processing and industrial parks and propose solutions to create an investment land fund.

The department has also been assigned to assist the city in building a 380ha high-tech industrial park in Pham Van Hai commune, Binh Chanh district.

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(Source: VNA)