Activities of Japanese enterprises in Tan Thuan Export Processing Zone, Ho Chi Minh City. Photo: Danh Lam/VNA

Lots of positive signals

Among 58 provinces and cities with newly licensed FDI projects in the past 11 months, Long An took the lead with a total registered investment capital of US$3.76 billion, accounting for 14.2% of the total registered investment capital.

Ho Chi Minh City ranked second with nearly US$3.43 billion, accounting for nearly 13% of total investment capital. Hai Phong ranked third with a total registered capital of over US$2.8 billion, accounting for 10.7% of total investment capital. Fourth place is Binh Duong with US$2.09 billion.

In terms of the number of projects, foreign investors still focus on investing in big cities with convenient infrastructure such as Ho Chi Minh City, leading both in the number of new projects (accounting for 36%), the number of adjustment projects (18.5%) and capital contribution to buy shares (59.6%).

In early November 2021, the People's Committee of Long An province granted investment registration certificates to three foreign investors' projects with a total registered capital of VND1,208 billion.

That is the 3/2 Pharmaceutical Joint Stock Company project in Long Hau 3 Industrial Park (phase 1) with the capital contribution of the Japanese investor worth US$35 million; Lotte Eco Logis Co., Ltd project of Korean investor in Phu An Thanh Industrial Park with total investment capital of nearly US$13.5 million and factory project for lease of H&N Production, Trade and Service Joint Stock Company, at the expanded Thuan Dao Industrial Park with a total investment of VND100 billion.

Notably, one of the particularly important FDI projects granted an investment registration certificate by Long An province in 2021 is the Long An LNG Power Project I and II invested by VinaCapital GS Energy Pte.Ltd (Singapore). The project has an area of ​​about 90 hectares in Can Giuoc district, including 2 combined cycle gas turbine plants, with a capacity of 2 plants up to 3,000MW, and registered investment capital up to US$3.1 billion.

According to investors, this project will create very positive impacts on the investment environment in general as well as attracting FDI in Long An province in particular when the project begins operation and exploitation in December 2025.

Assessing the effectiveness of FDI attraction, Vo Van Minh, Chairman of Binh Duong People's Committee, said FDI projects have been playing the role of the main driving force promoting the province's socio-economic development. In particular, FDI enterprises have participated in and promoted the process of industrialization and modernization in the locality through the transfer and innovation of production technology, contributing to the creation of a number of key industries of Binh Duong such as manufacturing, wood processing, textiles, footwear and electronics.

Prioritize high technology

Hua Quoc Hung, Head of Management Board of Export Processing Zones (EPZs) and Ho Chi Minh City Export Processing and Industrial Zones Authority (HEPZA), said that over 96% of the total 1,412 enterprises in IZs - EPZs in Ho Chi Minh City have re-opened, with the number of workers returning to the factory reaching over 80% compared to before the pandemic. The stability in economic management over the past month has created a positive signal for FDI inflows back to Ho Chi Minh City. HEPZA’s latest statistics show that the total attracted FDI investment, both new and adjusted, reached US$437 million, equaling 80% of the plan (US$550 million).

In addition, after the period of social distancing, a number of foreign investors worked with the HEPZA, asking for land, investing in building a new factory with a relatively large capital scale, industries with high science - technology content.

A number of foreign investors such as the investor of the Platinum Battery Project worked with the HEPZA to learn the investment process, ask questions about land leasing, invest in the construction of new factories with a capital scale of over US$200 million, is expected to rent about 15 hectares of land in Tan Phu Trung Industrial Park.

In order to be ready to welcome the wave of FDI investment after the Covid-19 pandemic, Binh Duong is continuing to accelerate the progress of investment in completing the infrastructure of industrial zones in a synchronous and modern direction. At the same time, supplement and complete the planning, promote the construction of infrastructure of industrial zones and hi-tech zones in order to create a clean land fund to attract investment in the development of high-tech industries as a premise for sustainable industrial development.

Pham Ngoc Thuan, General Director of Becamex IDC, said that in order to welcome the quality foreign investment flow, Binh Duong aims to create new added values, focusing on training to improve the quality of human resources, supplementing high-class service programs, boosting supply chains, logistics, infrastructure, and developing diversified transportation. For example, Becamex IDC Corporation and its partners have fully prepared infrastructure in five industrial zones, including My Phuoc 1, 2, 3, Thoi Hoa and Bau Bang.

Becamex IDC also cooperates with enterprises and organizations in South Korea, the Netherlands and Singapore to form a science and technology industrial park and a smart production center in Binh Duong, opening an innovative ecosystem, attracting global corporations and businesses.

In addition, Nguyen Thanh Toan, Director of Binh Duong Department of Industry and Trade, said that Binh Duong is promoting sustainable economic development. Therefore, Binh Duong will focus on developing the processing, manufacturing and supporting industries, prioritizing the selection and attraction of high-tech, information technology, and electrical industries, creating high added value as well as increasing export capacity.

Thereby, gradually forming a chain of clean and technological industries that go hand in hand with environmental protection, contributing to promoting socio-economic development following the trend of industrialization, modernization and urbanization.

Long An is expected to receive more FDI, in which many FDI enterprises will expand production and business in many industrial zones and clusters in the province.

However, in order to realize these opportunities, Kang Myongil, Consul General of the Republic of South Korea in Ho Chi Minh City, said that Long An needs to relax regulations on entry and medical isolation to support experts and investors coming to Long An to work. In the long-term, Long An needs to continue to promote the reform of administrative procedures and infrastructure, as well as improve the quality of human resources to meet the needs of long-term investment cooperation of foreign investors in the locality.