HCMC – The Mekong Delta province of Tien Giang, although just a striking distance from HCMC, is struggling to attract foreign direct investment, with only two projects licensed in the first nine months and another two projects expected in the rest of this year, said a senior provincial official.
Tien Giang struggles to attract FDI
By Van Nam - The Saigon Times Daily
HCMC – The Mekong Delta province of Tien Giang, although just a striking distance from HCMC, is struggling to attract foreign direct investment, with only two projects licensed in the first nine months and another two projects expected in the rest of this year, said a senior provincial official.
Provincial vice chairman Nguyen Van Phong reported the province had faced difficulties in calling for FDI projects this year and few foreign companies had come to learn about the investment environment at industrial parks such as Tan Huong and Long Giang.
Tien Giang, some 70km from HCMC, has this year to date attracted only two FDI projects worth a total US$11.7 million, which is equal to only 7.9% of the registered FDI capital during the first nine months of last year. These two projects comprised one licensed to manufacture health equipment in Tan My Chanh Industrial Park and another one producing garments and plastic products in Cai Be District.
Infrastructure development at some industrial parks, especially in the east of the province, has been too slow to attract foreign investors, Phong admitted.
Phong said some foreign companies in the province, including TongWei, Southern G.O.C. Limited, Higasshimaru and Thuan Phong, this year had raised their investment capital for production expansion for total adjusted capital of US$23 million and VND49.2 billion.
In the fourth quarter, the province is expected to attract two more FDI projects with registered capital of US$11.3 million and US$3.2 million to raise FDI capital up to US$50 million, 32% of the same period of last year.
All fresh and added foreign capital included, the province now is home to 42 FDI projects with registered capital of US$532 million, but disbursed capital of these projects is only US$194 million.
“The province will call fore more foreign projects into the 197-hectare Tan Huong Industrial Park and the 600-hectare Long Giang Industrial Park and create favorable conditions for FDI projects to develop their businesses and production activities during the coming three months,” the vice chairman said.
Though basic infrastructure is in place, these two industrial parks have received no investment projects this year.
According to Tien Giang Province’s report, the economic growth in the first nine months was 8.8%, the lowest in five years.