FDI drops 60% in Ho Chi Minh City

Industrial parks and export-processing zones in Ho Chi Minh City have attracted US$202.29 million worth of both direct and indirect investments in the first six months of this year, down by 38 percent year-on-year, according to the HCMC Export and Processing Zone Authorities (HEPZA).

The attraction, however, is only 40.46 percent of the targeted figure for 2012.

Foreign direct investment (FDI) accounts for $75.84 million of the total mobilized capital, representing a 59.45 percent year on year drop.

According to HEPZA, 90 projects in the city’s industrial parks and export-processing zones have had to suspend operation, reduce production or liquidate in the first six months of the year due to capital shortage, declined orders, or poor consumption.

Of these, four FDI projects ceased operation, while four others had to dissolve. 16 others had to cut down on production.

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