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Ho Chi Minh City
Tuesday, June 18, 2024

HCMC shuts down 30 projects in industrial parks

By Le Hoang

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HCMC – Up to 30 domestic and foreign invested projects in the industrial parks and export processing zones of HCMC were forced to close down amid the negative impact of the Covid-19 pandemic last year.

The HCMC Export Processing and Industrial Zones Authority (HEPZA) suspended nine foreign invested projects worth a total of US$26.32 million and 21 locally invested projects worth more than VND876 billion (US$38.56 million).

Most of them were shut down due to inefficient operations, the negative impact of Covid or the expiration of the land lease.

According to the HEPZA, 15 land lots among 30 of these projects have found new investors.

Data of the HEPZA showed that industrial parks and export processing zones of the city attracted US$600.79 million in investment last year, falling 20.95% against 2020 (US$760.05 million).

Of the figure, foreign direct investment (FDI) reached US$220.26 million, falling 40% year-on-year. The city’s industrial parks and export processing zones attracted 14 new FDI projects with their registered capital totaling US$153.14 million, falling 16.89% year-on-year, while 24 existing projects received an additional investment of US$67.12 million, dropping 60.3% year-on-year. 

The HEPZA said the fourth Covid wave, which began in April 2021, severely affected the entry of foreign experts and investors, as well as the operations of businesses. 

However, foreign investment began to recover from early October 2021 after social distancing measures were relaxed and most trading and production activities were resumed. 

Hua Quoc Hung, director of HEPZA, said the city targets to attract US$500 million in investment into its industrial parks and export processing zones this year. 

To meet this target, the HEPZA will focus on improving the quality and efficiency of investments, increasing support for businesses, accelerating administrative reforms and continuing to effectively control the Covid situation. 

The HEPZA will also set up new Covid treatment facilities in certain industrial parks and export processing zones and collaborate with local and foreign business associations to boost investment. 

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