Ho Chi Minh's bonanza: US$6.38B foreign capital in 2017
Ho Chi Minh City attracted a total of US$6.38 billion foreign direct investments last year, with half of this are capital contribution and share purchase in state-owned enterprises (SOEs), according to the Ho Chi Minh Investment & Planning Department.
As this is seen as a continuing trend, the Department will review and modify policies in a timely manner, said Director Su Ngoc Anh. The department was scheduled to hold a meeting to prepare plans for 2018 last February 2.
Ho Chi Minh has now become the top destination among major cities in Vietnam in attracting FDIs.
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The US$6.38 billion FDIs in 2017 represents double the amount in 2016. A total of 803 new projects have been approved for investment with total registered capital of US$2.34 billion. Some 194 projects received additional funds of up to US$962.63 million.
The city has agreed in principle to allow 2,276 foreign investors to contribute capital and purchase shares in SOEs in the total amount of US$3.68 billion.
Ho Chi Minh has now become the top destination among major cities in Vietnam in attracting FDIs.
FDIs have contributed significantly to Ho Chi Minh's economic growth, especially through mergers & acquisitions (M&A) activities in the retail sector.
The uptick in foreign investments reflects the effectiveness of government policies to attract foreign capital, said the Chairman of Ho Chi Minh People's Committee Nguyen Thanh Phong.
However, departments and agencies have to build on current achievements in attracting FDIs to the city, Phong said.
Half of the FDIs going through M&A is not purely capital contribution, but also to acquire and control enterprises, which requires close supervision and timely adjustment.
"Ho Chi Minh gives priority to high-quality FDI projects, especially those applying high technologies, and sets limits on projects using a large workforce," Phong pointed out.
"The industrial complex of the city will soon be expanded to 1,000 hectares, so authorities will strive to attract more foreign investors with appropriate portfolios," he added.
In 2017, the FDI sector generated the largest portion of revenues with VND327 trillion (US$14.3 billion), while the figure for the domestic sector remained modest at VND188 trillion (US$8.2 billion), said the Director of the Industrial Statistics Department, Nguyen Dinh Thuy, at the February 6 press conference announcing the enterprise development index.
However, the domestic sector contributed the most to the state budget with VND434 trillion (US$19.1 billion), with the FDI sector accounting for only VND250 trillion (US$11 billion).
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