FDI inflows to Ho Chi Minh City up 31%
(SGT-HCMC) HCMC has attracted over US$755 million in foreign direct investment (FDI) this year, or US$55 million higher than the target.
This pledged capital shows an increase of US$275 million over last year’s result, or an increase of 31%, according to the city’s Service of Planning and Investment. This is the first time in three years the city beats its FDI target.
The city has licensed 234 foreign-invested enterprises (FIEs) this year with combined capital of US$430 million. In addition, 140 FIEs have added a total of over US$324 million to their investment capital.
Of the new FIEs, 106 are in the manufacturing sector and 75 in property trading and consulting. However, sectors that are expected to lure lots of FDI like service, banking, finance and info-tech attract few investors this year.
Most new investors come from Korea, Singapore, Japan and Taiwan.
The Service of Planning and Investment has yet to set next year’s FDI target, but expects a result better than this year’s, service deputy director Luong Van Ly said, explaining that many investors from Japan and Korea have sounded out business chances in HCMC since July.
* Hanoi has attracted nearly US$1.1 billion in foreign direct investment (FDI) this year, a 55% year-on-year increase, according to the Hanoi Statistics Office.
This FDI figure comprises of pledged investment in 100 new foreign-invested enterprises and added funds by operational FIEs.
The Hanoi Statistics Bureau puts capital disbursement in FDI at US$210 million, a 17% increase.
Hanoi has been seeking to lure FDI by simplifying procedures and organizing investment promotion programs in various countries like Thailand, China, Switzerland, Spain, Italy and Hungary.
The Saigon Times Daily, December 28, 2004
