By Quoc Hung - The Saigon Times Daily
HCMC – Foreign direct investment (FDI) into HCMC fell 21% in the first four months of this year to nearly US$444 million committed to 112 new projects, compared to 93 projects worth more than US$565 million in the year-ago period.
However, the contraction was 17% if additional funds injected into operational projects are taken into account, as the combined FDI amount in the period was US$526 million, equivalent to nearly 83% of that in the same period last year, according to the HCMC Department of Planning and Investment.
FDI attraction in the city, therefore, falls far short of expectations, as the city government has earlier raised the target this year by more than four times to US$8.4 billion. The committed capital so far accounts for a mere 6.26% of the whole year’s target, according to the department.
The city has pinned high hopes on FDI as several capital-intensive projects are in the offing.
Capital Group, for example, has plans to inject billions of dollars to build a large-scale property complex in the Tay Bac (North-West) Metropolitan Area in the outlying district of Cu Chi, about 22 kilometers from the city center.
meanwhile, South Korean Lotte Mart is awaiting an investment certificate to open a new shopping center in District 11. The project requires a US$100 million investment.
In addition, HCMC authorities agreed earlier this year to auction five valuable plots – dubbed “golden land” – to attract foreign investors. Four are located in District 1 and the other in Binh Thanh District.
Many investors are keen to acquire the plots. The department said that if successful, the sales would generate investment in the city worth billions of dollars.
Priority sectors for FDI in HCMC this year include financial services, banking, and high value-added and environmentally friendly manufacturing, as well as new materials, biotechnology, information technology, mechanical engineering, health care and education.
The city attracted only US$1.4 billion in FDI in 2009, down 84% compared to 2008.
HCMC has attracted the most FDI of all localities in Vietnam. As of mid-March, the city had 3,604 operational FDI projects worth US$27.8 billion.