The south-eastern province of Dong Nai reported a record of more than US$2.4 billion in foreign direct investment (FDI) since the beginning of the year, according to the provincial People’s Committee.
The amount is a 3.8 fold increase over the same period last year or 68 per cent of the yearly plan. In the first seven months of the year, the province licensed 58 new FDI projects worth nearly $1.5 billion, and permitted 74 projects to increase their combined capital by over $900 million.
The combined total investment capital of nine newly-licensed projects in trade, services and urban areas accounted for more than $1.4 billion. These included a $750 million Long Hung ecological urban project – a joint venture between the Dong Nai Agriculture Service Co-operative Alliance (Dona Coop) and a number of foreign partners.
Dong Nai has so far received 940 valid foreign-invested projects, worth over $14 billion in total, of which more than 700 are now in operation, creating 330,000 jobs for local residents.
The province ranks third after HCM City and Ha Noi in attracting FDI, according to the General Statistics Office of Viet Nam. Home to 27 concentrated industrial zones covering more than 8,000ha, it has leased out 66 per cent of its total acreage.
"Foreign investment has had an initial success and made a strong impact in various aspects of the southern province of Dong Nai’s economy over the past 20 years," said chairman of the provincial People’s Committee Vo Van Mot.
So far, new projects involving high-tech industries and the services sector accounted for over 80 per cent of total investment capital, matching the province’s goals to attract investment, Mot said.
Mot added that 80 per cent of investment capital in Dong Nai Province was in the industrial zones, creating favourable conditions for environmental protection and infrastructure development.
Together with IZ development, the province is also building industrial complexes of under 100ha with minimal investment capital on substructure. These projects are considered appropriate to the financial capabilities of small and medium-sized enterprises to diversify the provincial investment environment.
By the end of the year, Dong Nai expects to absorb $2.45 billion in FDI.
Dong Nai is also seeking investment in other areas, including machinery, electronics, new materials, composites, agricultural equipment, engines, accessories and vehicles parts, packaging, medicine and environmentally friendly projects. It also welcomes investment in infrastructure, real-estate, textiles and apparel, as well as tourism.
Dong Nai Province has pledged to shorten its licensing time for new projects, speed up land clearance and offer subsidies to promising projects to form an improved investment climate.
The strong increase in investment capital was attributed to provincial efforts to promote administrative reform and perfect its "one-door" policy which creates more favourable investment conditions, according to Dong Nai’s Department of Planning and Investment director Bo Ngoc Thu.
"The success of enterprise pioneers operating in Dong Nai has helped attract many investors, those with intentions to pour capital into the province," Mot said. "Dong Nai has been successful thanks to the "chain effect," as well."
CP Group president in Viet Nam Sooksunt Jiumjaiswanglerg, confirmed that the presence of CP Group in Dong Nai Province over the past 16 years has retrospectively been a great decision, with annual revenue ranking second out of 30 of the group’s branches world-wide. CP Group is a Thai provider of agricultural products like chickens and eggs.
General director of Chang Shin Viet Nam, Choon Taek Park, shared similar sentiments, noting that provincial authorities created the best conditions via administrative procedures, infrastructure and labour for the company, helping to increase productivity five times higher than when they started operating. Chang Shin is a Korean company specialising in sport shoes and garments.
Located in a favourable position at a main economic zone in the southern region, the province benefits from proximity to maritime ports and international airports and from progressive policies. Dong Nai has lured investment from 32 countries and territories. Taiwan is the province’s top investor, followed by Korea, Japan, ASEAN countries, Europe and America.(Source: VNS)