FDI Capital into Export Processing Zones and Industrial Parks in Ho Chi Minh City Doubled
Reporting on the operating results of export processing zones and industrial parks in the first 6 months of 2024, Ms. Nguyen Thi Lan Huong, Chief of Office of the Management Board of Ho Chi Minh City Export Processing and Industrial Zones Authority (Hepza) said, the total capital Attracted investment, both newly granted and adjusted, reached about 272 million USD, reaching nearly 50% of the year’s plan (550 million).
However, investment capital during this period decreased by 65.52% compared to the same period last year (788.85 million). The reason is that the committed investment capital of domestic enterprises has decreased sharply. Specifically, total domestic investment capital only reached nearly 73.2 million USD, down 89.42% over the same period last year. At this time last year, domestic investment capital increased very high due to a large project of 620 million from Viettel.
Ms. Nguyen Thi Bich Ngoc, Head of Investment Management Department of Hepza, said that although domestic capital flows have decreased sharply in the past 6 months, FDI capital committed to EPZs and Industrial Parks has increased, reaching 198.82 million USD, an increase 2 times higher than the same period last year.
This result is mainly thanks to active investors increasing capital. Specifically, there are 9 active FDI projects increasing nearly 189 million USD, an increase of 3 times compared to the same period last year. Meanwhile, there are only 10 new FDI projects but the total registered investment capital only reached nearly 10 million dollars, down 73.46% over the same period. The area of export processing and industrial park land leased in the past 6 months only reached 5.05 hectares. Factory area for rent reaches more than 24,900 m2.
Talking more about the results of attracting investment in the first half of this year, Mr. Tran Viet Ha, Deputy Head of Hepza, said that to attract a lot of investment capital, land funds are very important, but currently the “clean land” fund in the Export Processing Zone – Industrial parks in the city are very few. Currently, there is only about 75 hectares of land available for lease, but it is not concentrated in one area but scattered in many areas and not in contiguous plots, causing difficulties for investors who need a large land area.
In the second half of this year, Hepza will continue to implement Pham Van Hai I Industrial Park with an area of 379 hectares and Pham Van Hai II Industrial Park with an area of 289 hectares. In addition, Hepza will also develop a pilot conversion project for 5 Export Processing Zones and Industrial Parks, including Tan Thuan, Tan Binh, Cat Lai, Hiep Phuoc, and Binh Chieu. In 2024, Hepza aims to attract 550 million in investment capital.