FDI inflow into city plunges
By Quoc Hung - The Saigon Times Daily
HCMC – HCMC in the first four months had more foreign-invested projects year-on-year but there was a huge slump in FDI inflow into the city due to the modest sums of the newly-registered capital.
The city in January-April granted investment certificates to 113 FDI projects at total registered capital of over US$77.7 million, plummeting 94% year-on-year, according to a report by the city’s Department of Planning and Investment.
The overall figure totaled at more than US$535 million, down 62% from 2011 when counting additional capital raised by 28 existing FDI projects.
The representatives of HCMC Export Processing and Industrial Zones Authority (Hepza) and new urban areas in Saigon South and north-west Cu Chi reported a gloomy outlook for investment activities. Some of them are unlikely to attract a single FDI project.
For instance, processing and industrial zones in the city in the year to date have been home to six newly-registered FDI projects and seven operational projects at combined investment capital of around US$71 million, a 93% year-on-year decrease.
Similarly, the Saigon Hi-tech Park attracted two FDI projects with capital of US$3.3 million.
A source related to the issue said global economic uncertainties had a deep influence on FDI attraction in recent times and it would likely continue in the immediate future.
So far, most international investors are small-sized businesses pouring little capital into their projects.
Despite the shrinking FDI inflow, HCMC is third behind Binh Duong and Haiphong provinces in attracting FDI capital nationwide. Binh Duong attracted FDI capital of US$1.58 billion with Haiphong netting US$664.3 million in the past four months.