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Central region attracts foreign investment
The central key economic zone promised to become a spotlight in the country's foreign direct investment (FDI) attraction this year, said Trinh Minh Van, Director of the Investment Promotion Centre for Central Viet Nam under the Ministry of Planning and Investment.
Despite these effects of the global economic downturn, the zone including the provinces of Thua Thien-Hue, Quang Nam, Quang Ngai, Binh Dinh and the city of Da Nang would continue to ensure increased FDI attraction, Van said.
Last year, the zone attracted US$4.84 billion in FDI, accounting for over 28 per cent and 97.2 per cent of total investment registered in the central and Central Highland regions and the country, respectively.
FDI registered in the zone was 166.4 per cent higher than that in the northern key economic zone and equalled 82 per cent of the southern key economic zone.
However, there was an imbalance in FDI structure in 2010, Van said.
Up to 95 per cent of FDI was invested in the trade and service sector with real estate trading attracting the lion's share of FDI and only 5 per cent was invested into the fields of industry and construction. No investment had been made in agriculture, forestry and fishery.
Van attributed the imbalance to the region's advantages for developing real estate projects and competition between some provinces in the key economic zone in attracting investors, resulting in series of investment incentives being offered. Some investors took advantage of those preferential policies, signing contracts without realizing them.
The inadequate infrastructure, a lack of skilled personnel and low competitive investment costs in logistics and services were also blamed for insufficient investment capital flowing into the fields of manufacturing, high-tech and support industries.
Meanwhile, sluggish FDI disbursement was also problematic, Van said, adding that only 4.2 per cent of registered FDI was disbursed last year.
"The zone needs to make larger efforts to further implement investment promotion programmes and also draw up more effective strategies on attracting FDI," he said.
Solving the problems regarding administrative reform, infrastructure construction, human resource training and co-operation among provinces in the zone was also necessary.
This year, the Government also gives priority to solving these problems with a focus on luring FDI in support industries and infrastructure through Public-Private Partnerships, according the Ministry of Planning and Investment.
Van's centre would work with provinces to draw up a list of the fields calling for investment based on local conditions and draft concrete investment promotion programmes.
It would also co-ordinate closely with local authorities to strengthen inspection activities to guarantee the efficiency of foreign-invested projects, Van said.
The zone was attempting to attract investment in its potential and competitive sector such as oil and gas, ship building, logistics, coastal tourism development, hi-tech and clean industries.
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