|Dong Nai steps up effort to lure foreign investors.
Dong Nai is home to more than 1,200 valid FDI projects with registered investment of more than US$23 billion. Since 2014, an average of about US$1.7 billion has been invested in the province’s FDI projects each year. Besides large investors, the province has also called for foreign enterprises with medium-sized investment in high technology. Currently, 80% of FDI firms in the province have invested US$10 million or more.
Various dialogues have been held annually by the local government to help enterprises remove barriers while the province has asked for cooperation from other provinces like Nghe An and Dong Thap to help recruit workers.
Before, enterprises employing more than 5,000 workers were priorities when seeking investment permits due to the province’s effort to create local jobs. But now, labour-intensive projects are no longer in its favour. The province has also rejected many projects using outdated technology or those that could harm the environment.
Mai Van Nhon, deputy head of the provincial management board of industrial parks, said in 2014, an investor had to spend 50,000 USD to create a job and this number increased to US$80,000 this year. Also before, an investor had to spend US$10 million to open a factory that employs 500 workers but now, with the same amount of money, they only need 300 labourers. Most of the spare funds are used to buy technology and equipment, he added.
Additionally, Dong Nai has stepped up efforts to fast-track key infrastructure projects, including Long Thanh International Airport, the Dau Giay – Phan Thiet, Dau Giay – Lien Khuong and Bien Hoa – Vung Tau Highways, and Tan Van – Nhon Trach belt road. It also plans to construct roads connecting Trang Bom and Vinh Cuu, Trang Bom and Thong Nhat, and Long Thanh and Cam My.
The province attracted US$902 million in foreign direct investment (FDI) in the first six months of the year, more than 90 percent of the yearly plan and up 48 percent from the same time in 2017.
According to the provincial Department of Planning and Investment, investment licenses were granted to 54 FDI projects with total registered capital in excess of US$420 million. Meanwhile, 49 projects applied to increase their investment capital.
The FDI inflow came from the Republic of Korea, Taiwan (China), Japan, China, the British Virgin Islands and Germany.
Large projects included a 40-million-USD Hi KNIT Co., Ltd project developed by a Korean investor at Nhon Trach industrial park, a 33-million-USD Air Manufacturing Innovation Vietnam project by Dutch investor at Giang Dien industrial park and a US$32-million DH Logistic Property Vietnam Co.,Ltd project by Singaporean investors at Loc An-Binh Son industrial park.