Major groups to invest in Can Tho city
Several major domestic and foreign groups will be committing to projects in the Mekong Delta city of Can Tho after signing memoranda of understanding on investment next month.
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A corner of Can Tho city (Photo: VNA)
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Local authorities are due to grant investment licenses to other large-scale projects, including a complex made up of villas, a golf course, and reception area in Con Au islet in Cai Rang district.
Furthermore, businesses from the Republic of Korea and Japan have also been exploring investment opportunities in Vietnam’s Mekong Delta city.
According to the municipal People’s Committee, industrial and processing parks in Can Tho attracted an additional three projects during the first six months of 2018 with a combined registered investment of US$4.17 million, as well as three existing projects with increased capital of US$4.91 million and two reclaimed projects worth over US$3 million.
In summary, industrial parks count for 233 valid projects with a total registered capital of over US$1.6 billion. The capital disbursement was estimated at over US$1 billion.
From January to June, businesses grossed US$776.59 million in revenue, representing a year-on-year rise of 3 percent and fulfilling 53 percent of the target set for the year.
In the six-month period, Can Tho granted an investment licence to one project worth US$20,000, allowed another existing project to raise its capital by US$30.6 million, and suspended the operation of two projects worth US$500,000.
To date, the city has run 76 FDI projects worth US$687.4 million. The capital disbursement has reached US$477.8 million.
According to economists, foreign investment attraction in Can Tho has yet to truly reflect its position as a centre of development in the Mekong Delta region due to poor infrastructure connectivity between the city and other localities nationwide.
The lack of high-quality labour forces and slow development of the support industry are also barriers to drawing foreign investment, they said.
To address these shortcomings, Can Tho has been increasing trade and investment promotion activities both at home and abroad, as well as clearing land at industrial and processing parks to enable businesses to make further investments into the city.
Relevant agencies have been working to simplify administrative procedures to create a favourable mechanism for investors.
Local authorities also meet with enterprises on a monthly basis to promptly address any difficulties that has arisen and help them promote business production.
Can Tho will call for VND124 trillion (US$5.4 billion) in investment to finance 54 projects at an investment promotion conference to be held on August 9-10, with Prime Minister Nguyen Xuan Phuc being expected to attend the event along with 550 domestic and foreign delegates.
Of the said projects, 44 are in the form of direct investment with an estimated value of over VND112.9 trillion (US$4.89 billion).
Among them, 22 have found investors who are already prepared to spend VND82 trillion (US$3.55 billion).
It will introduce its strengths and investment policies during the conference under the theme of “Sharing Potential for Mutual Development” on August 10.
Discussions will focus on services, high-tech agriculture, and information technology. Some investment projects are hoped to be awarded licences at the event and ground-breaking ceremonies for key projects will be held.
The Mekong Delta city is seeking investment to enable it to become a service and high-tech agriculture centre, as well as an information technology hub.
