Vietnam is projected to strive to attract foreign investment throughout 2021, with a specific focus on Ho Chi Minh City, according to insiders.
According to the HCM City Export Processing and Industrial Zones Authority (Hepza), industrial parks based in the southern city lured more than US$760 million worth of investment during 2020, a 17% increase from 2019’s figure.
Of the total, the overall domestic investment capital reached over VND9.000 billion, a rise of 57%, while total foreign investment capital (FDI) endured a decline of 7.26% to roughly US$370 million in comparison to 2019 as a result of the adverse impact of the COVID-19 epidemic.
Hua Quoc Hung, head of the Hepza’s Management Board, projected that there are plenty of positive signs ahead this year for foreign investment attraction due to the country’s COVID-19 containment and its improved investment climate.
Hung therefore underlined the need to speed up administrative reforms and put a greater focus on economic sectors that feature a high level of technology and added value, while simultaneously accelerating the pace of growth within the digital economy.
Le Bich Loan, deputy head of the Ho Chi Minh City Hi-Tech Park, stressed the importance of enhancing the capacity of local firms to have a deeper participation in supply chains, as well as attracting investment from FDI enterprises in order to increase on-spot export possibilities for domestic enterprises, thereby reducing the risk of facing disruption in global supply chains due to the COVID-19 epidemic.
Jeff Nessom, vice president of Engineering, Techtronic Industries (TTI), said that the company is in the process of moving its factory from North America to Asia, and Vietnam is one of the destinations. The company has so far spent US$650 million investing in building a manufacturing plant, along with a product research and development centre, in the Ho Chi Minh City Hi-Rech Park.
The HCM City – based manufacturing plant’s export revenue recorded an increase from US$300 million at the end of 2019 to US$1.5 billion by the end of 2020, and the figure is expected to reach US$6 billion by 2025.VOV