Over US$591 million poured into HCM City EPZs, IPs
VOV.VN - Local industrial parks (IPs) and export processing zones (EPZs) in HCM City have attracted US$591 million in newly-registered and adjusted capital by early November, representing an increase of 7.16% from last year’s corresponding period, according Ho Chi Minh City Export Processing zone and Industrial Park Authority (HEPZA).
Of the overall figure, foreign investment attraction (FDI) recorded a decrease of 19.14% to more than US$270 million, including 11 newly-licensed projects capitalised at US$90.97 million and 25 projects with adjusted capital reaching US$179.7 million.
The service sector took the lead among industries, attracting US$81.16 million in investment, followed by mechanics, electronics, plastics, and rubber.
The domestic sector lured approximately US$321.27 million in investment, an annual increase of 47.6%. It attracted 46 new projects capitalised at US$250.94 million and 32 projects with increased capital reaching roughly US$70.33 million.
Hua Quoc Hung, head of the HEPZA, said the decline in FDI attraction can largely be attributed to the impact of the novel coronavirus (COVID-19) epidemic. Indeed, Vietnamese success in containing the epidemic has served to attract foreign financiers to the southern metropolis, therefore creating more jobs, especially in the service, footwear, and garment industries, all of which have a high demand to recruit more workers.
According the HEPZA, 41 out of 45 projects have resumed operations, while some firms have actively been seeking new customers and suppliers, alternative material sources.
Currently, enterprises have also proposed increasing the tax payment deferral time to 10 months or one year, therefore reducing the time it takes to handle administrative procedures and to create optimal conditions for foreign investors and labourers working domestically.
The HEPZA also reported that the city’s export turnover during the past 10 months reached US$5.3 billion, of which FDI enterprises grossed US$3.86 billion, accounting for 73%, and domestic enterprises with more than US$1.4 billion, making up 27%.
According to experts, there are positive signs ahead during the remainder of the year with COVID-19 being brought under control. In addition, the enforcement of the EU-Vietnam Free Trade Agreement (EVFTA) is anticipated to facilitate greater production and export for enterprises to the largest market in the European region.
