Ho Chi Minh City works to attract foreign investment

(VOV) – Despite global economic difficulties, Ho Chi Minh City has been leading the country in terms of foreign direct investment attraction since early this year. The achievements can be attributed to the solutions being applied to lure FDI companies to the city. VOV’s Cao Thoa analyzes these measures.

Simplifying administrative procedure is one of keys to attract foreign investors to Ho Chi Minh City   (Photo: VOV)

Simplifying administrative procedure is one of keys to attract foreign investors to Ho Chi Minh City (Photo: VOV)

After 18 years, Saigon Precision, a wholly Japanese invested company, now has three factories in the processing zones of Linh Trung 1 and Linh Trung 2 in Ho Chi Minh City.

In the context of many companies facing production stagnation, Saigon Precision which specializes in complex manufacturing – is planning to increase production capital and hire more land to build a fourth factory in Linh Trung Processing Zone 1. Shigeki Okamura, Director General of Saigon Precision, says “since we have invested in Ho Chi Minh City, we have received a great deal of support from the management board of the municipal export processing zone and industrial zone to implement our projects. Vietnam has a good investment environment. In the future, we hope the relevant agencies will continue to create more favorable conditions and promulgate incentives for foreign investors, including us.”

In the first half of this year, export processing zones and industrial zones in Ho Chi Minh City have lured 146 million USD of FDI, up nearly 79% against the same period last year. The amount comes from 8 newly-registered projects and 10 others that have expanded their investment capital. The most impressive thing for investors is administrative procedures that lead to licensing in these zones, which now takes only 6 instead of the 15 days as stipulated by the law.

Nguyen Bach Hoang Phung, deputy Director of Ho Chi Minh City’s Export Processing Zone and Industrial Zone Authority, said “Administrative procedure reform has shortened the time for granting licenses and other procedures relating to investment which facilitate better conditions for investors to implement projects. In addition, we’ve reserved a certain amount of land and workshops so that whenever any investors want to put money into Vietnam to do business, we’ll be ready to serve them.

The municipal Department of Planning and Investment reports that in the first six months, 187 FDI projects were licensed and were worth more than 228 million USD, equivalent to 33.75% of the country’s total. In addition, 60 operational FDI projects in the city were also approved, adding 304 million USD more capital for the expansion of their projects. Thai Van Re, Director of Ho Chi Minh City’s Department of Planning and Investment, said “if any foreign company has queries about investment and procedures, the Ministry will take responsibility to work with the relevant departments and district authorities to explain and create the best conditions for them. Our department can handle issues relating to administrative procedures on behalf of the investors. This is one of the city’s support policies for attracting investment.

Apart from boosting administrative procedure reforms, five working teams have been set up to be in charge of quickly helping enterprises with difficulties. Many municipal leaders leading the working teams have directly met with investors in the world and region. In the future, Ho Chi Minh City plans to call for investment in industry, and to be environmental friendly and high-tech.

Cao Thoa