Foreign direct investment in HCM City drops
Foreign direct investment (FDI) registered in HCM City has decreased by 65% year-on-year, according to the municipal Statistics Office.
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As of July 15, the country's major economic hub lured only US$863.6 million, much lower than US$2.5 billion in the same period last year.
According to the office, real estate remained the most attractive sector to foreign investors, attracting US$280 million or 43.7% of the city's total FDI. Trade ranked second with US$185 million or 28.9%.
In the period, the Cayman Islands were the city's leading source of FDI with US$231 million. It was followed by Japan with US$96.1 million; Singapore (US$87.2 million); the Republic of Korea (US$51.2 million); British Virgin Islands (US$45 million) and Taiwan (US$30.3 million).
Deputy Director of the municipal Department of Planning and Investment Le Thi Huynh Mai told Sai gon Giai Phong (Liberated Saigon) newspaper that the city's FDI results did not reflect its overall picture of investment attraction because large-scale projects were often proposed by foreign investors in the second half of this year.
To create favourable conditions for investors, HCM City continued to allocate more cleared land for production and upgrade infrastructure at industrial parks and export processing zones, Mai said.
The city was expanding the second phase of the Sai gon Hi-Tech Park by 600ha and planned to expand Quang Trung Software Park. It also focused on speeding up administrative reforms, she said.
Earlier, Mai said that HCM City considered FDI important in its development.
The city would attract FDI in knowledge and technology industries, supporting industries and bio-technology to realise that city's goal to become a knowledge economy, achieve green growth, and improve development quality and competitiveness, she noted.
