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FDI trickles into delta region
Foreign direct investment (FDI) in the Mekong River Delta region remains far short of its potential, Nguyen Thi Bich Van, deputy head of the Department of Foreign Investment in Ha Noi, said.
The delta is one of the country’s key economic hubs, accounting for 80 per cent of its rice and seafood exports.
But the FDI inflows are low compared to other regions. In the first seven months of the year, it has attracted just US$2.8 billion in 57 foreign projects, or 6.3 per cent of total FDI.
Furthermore, the investment is concentrated in some accessible areas such as Can Tho, Long An, and Kien Giang provinces, and in building golf courses and resorts rather than in agriculture.
Nguyen Minh Nhi, former chairman of the Kien Giang Province People’s Committee, said the region’s poor infrastructure and human resources and an agricultural system based largely on a household rather than a modern industrialised system precludes foreign investment.
Investment in agriculture is not lucrative because of risks like floods, storms, and diseases.
Van said the delta provinces should join hands with each other or south-eastern provinces, especially with HCM City, to attract investment.
They should closely co-ordinate to organise trade promotions to lure foreign money and avoid overlapping and competition.
Developing transport infrastructure – both on land and water – in the delta is extremely important, she said.
She urged the provinces to increase investment in developing human resources.
Provincial authorities plan to seek investment from domestic and foreign sources, especially from countries with a strong agricultural sector, like the US, Canada, Japan, France and Australia.
VNS
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