HCM City attracts over US$1 billion FDI investments in first two months

Tan Binh Industrial Park in HCM City’s Tan Binh District. — VNS File Photo

In January, HCM City received registration for FDI of more than US$745 million, the largest amount of FDI for any locality in the country.

It included $32.72 million investment in 68 new FDI projects, and additional investment of $4.7 million for 11 operational projects.

The city also approved 191 cases of foreign capital contributions to purchase shares of local businesses (from local shareholders) with total value of more than $452 million.

Le Thanh Liem, deputy chairman of HCM City People’s Committee, said that in 2018 the city received more than $7 billion in FDI, including $6 billion registered in the form of capital contributions and purchases of shares of local enterprises.

The number and value of FDI in M&A (mergers and acquisitions) projects increased significantly in the last few years, from $1.5 billion in value in 2016 to 3.68 billion in 2017, and to $6 billion in 2018.

Investment in M&A projects totals more than $10 billion, accounting for 22 per cent of the total FDI mobilized by HCM City since 1988.

Foreign investors favour M&As because of the simple investment procedures and favourable conditions, an official from the HCM City Department of Planning and Investment said.

M&A deals do not require investment registration certificates from investors, he added.

However, M&As also help foreign investors “avoid” procedures for investment licenses for these projects. The official asked agencies to issue legal documents for management of this investment resource.