Attracting foreign direct investment (FDI) to the Southeast region has a clear differentiation when provinces with large land funds and infrastructure advantages have accelerated, while localities that have run out of industrial land funds are running out of steam.
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Dong Nai, Ba Ria - Vung Tau accelerate
Many business leaders attending the Conference on Planning Implementation and Investment Promotion of Ba Ria - Vung Tau Province at the end of March 2024 were surprised to see that investment attraction in the province in the first quarter of 2024 exceeded the total capital of 2023.
Mr. Le Ngoc Linh, Director of the Department of Planning and Investment of Ba Ria - Vung Tau, said that in the first quarter of 2024, the province granted new and adjusted investment capital for 23 domestic and foreign projects (including 13 FDI projects, with investment capital of more than 1.56 billion USD), with a total investment capital of more than 62,000 billion VND, reaching more than 90% of the 2024 plan and exceeding the whole year of 2023 (nearly 51,000 billion VND).
Another bright spot in FDI attraction in the Southeast region is Dong Nai. Statistics from the Department of Planning and Investment of this province show that in the first quarter of 2024, the province's FDI attraction reached 571.3 million USD, an increase of 13% over the same period. In 2024, the province aims to attract 700 million USD in FDI capital, so by the end of the first quarter of 2024, it has completed 81% of the annual plan.
While Dong Nai and Ba Ria - Vung Tau are making strong breakthroughs in attracting FDI, Binh Duong and Ho Chi Minh City are slowing down after many years of achieving high results. Statistics show that in the first quarter of 2024, FDI attraction in Ho Chi Minh City only reached 459.7 million USD, down 7.6% over the same period; while Binh Duong reached 158.3 million USD, down 36.1% over the same period.
The slowdown in FDI attraction in Binh Duong and Ho Chi Minh City is not beyond the investors' prediction, because after many years of attracting large corporations, the industrial land fund in these two localities has gradually narrowed, and new industrial parks have not been built. For example, after Binh Duong attracted the 1.3 billion USD project of Lego Group, FDI capital skyrocketed, but in the following years it did not attract large projects, so FDI capital decreased quite sharply.
Why do investors flock to Dong Nai and Ba Ria - Vung Tau?
The fact that foreign investors are flocking to Dong Nai and Ba Ria - Vung Tau shows that these two localities have great advantages compared to other provinces and cities in the Southeast region, especially in terms of infrastructure.
Mr. Nobuyuki Matsumoto, Chief Representative of the Japan External Trade Organization (JETRO) in Ho Chi Minh City, said that Ba Ria - Vung Tau is one of the localities that JETRO recommends businesses to invest in. This locality has many advantages such as: Cai Mep Thi Vai port and Long Thanh International Airport (under construction); rich in oil and gas resources and an LNG receiving warehouse, stable electricity supply; has two universities; is located next to Dong Nai and Binh Duong - two localities with many factories ensuring supply for the supply chain.
“Importantly, the Japanese One-Stop Shop has been established under the Department of Planning and Investment of Ba Ria-Vung Tau province to provide extensive support and resolve issues related to Japanese enterprises. I believe this is the most important factor in attracting investment to the province,” Mr. Nobuyuki Matsumoto stated.
Regarding the reason for choosing Ba Ria - Vung Tau as an investment destination, Mr. Lee Sang-Woon, Vice President of Hyosung Group, assessed that this place is a maritime gateway, has an abundant and highly qualified workforce, good infrastructure and attractive incentive policies. Hysoung has invested 1.6 billion USD in a Polypropylene and LPG factory. The Group also plans to invest 730 million USD to build a Bio-BDO factory with a capacity of 200,000 tons/year.
“Hyosung will strive to become a leading company in the bio-industry field and work with the provincial government to create a global center for the bio-industry here,” said Lee Sang-Woon.
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