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Industrial zone attracts more local investors
Domestic investment in the HCM City Export Processing and Industrial Zone (HEPZA) was twice that of Foreign Direct Investment (FDI) in the first seven months of the year, reports the zone's management authority.
Domestic investors provided about US$235 million for 35 projects while their money for 19 existing projects added another $62 million.
FDI was about $136.3 million for 27 projects.
HEPZA Authority deputy director Nguyen Tan Phuoc explained: "The FDI decrease resulted from the global financial crisis and the authority's new investment policy which discourages labour-intensive projects that do not utilise technology."
But domestic enterprises had taken advantage of the opportunity to expand their investment and improve existing projects.
About $2.1billion has been injected into export processing and industrial zones during the past five years.
Of this, domestic investment has totalled $1.32 billion.
Licences have been granted or implemented for almost 1,200 projects in HCM City's export processing and industrial zones so far this year.
Domestic investors have financed 710 projects and FDI 447.
In the next five years, HCM City will bring into operation a further seven industrial zones to add to the existing 15 operational industrial parks and export processing zones, including Dong Nam, Phuoc Hiep and Bau Dung.
HEPZA Authority said that the most challenging factor in attracting FDI was external infrastructure, transport systems, limited land, rental prices and a shortage of electricity.
HCM City targets to reach FDI of $8.4 billion for 2010.
vietnamnews
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