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Investment plummets in City’s industrial zones
Investment in export processing and industrial zones in HCM City declined sharply in the first half of this year.
The zones have attracted five foreign invested projects worth US$3.9 million from mainland China, Taiwan, South Korea, Japan and Belgium. The figure represents just 11.9 per cent of the total foreign investment in the zones in the first half of last year.
In the first six months of the year, domestic investment in 10 projects was worth VND760 billion ($42 million) or 25.5 per cent of total domestic investment in the same period last year.
HCM City's Export Processing and Industrial Zones Management Board blamed the situation on the world economic downturn, fluctuations in material prices and falling consumption.
Investors, particularly foreign, were reluctant to pour capital into projects in the current economic climate, the board said.
In addition, the city's drive to encourage eco-friendly and less labour-intensive projects in sectors such as animal feed and dried food production and the textile and garment industries had reduced investment, the board said.
Economic experts said the decline in investment was to be expected in tough economic times and while the city's infrastructure was being upgraded.
HCM City has 15 export processing and industrial zones that are almost fully occupied. However, the board expects the zones will attract $681 million investment this year - the same figure as last year.
VietNamNet, VietNamNews
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