FDI investment in IPs, EPZs up

Investment in industrial parks (IP) and export processing zones (EPZ) rose more than 39 per cent year-on-year in the first half of the year to US$384.3 million, according to the HCM City Export Processing and Industrial Zones Authority (Hepza).

Workers at Sunny Group in Linh Trung Export Processing Zone in HCM City’s Thủ Đức District. – VNA/VNS Photo Thanh Vũ

Foreign direct investment (FDI) was worth more than $159 million, a year-on-year increase of 24 per cent, said Trần Việt Hà, head of the investment management department.

Investment by domestic enterprises rose by 52.7 per cent to $224.34 million.

Most of the new projects are in food processing, services, mechanical engineering and textiles.

South Korea was the largest investor, accounting for 55 per cent of the investment, followed by Taiwan and Japan.

In May, CJ Cầu Tre Food JSC received an investment registration certificate to develop a 7.1-hectare complex at Hiệp Phước Industrial Zone in Nhà Bè District.

The project, with investment of VNĐ1.2 trillion ($53.33 million), to process meat and seafood and produce tea and confectionery products contributed to the FDI surge in IPs and EPZs over the first half of the year, Hà said at a press meeting held on July 14.

CJ CheilJedang Corporation, a subsidiary of South Korean conglomerate CJ Group, raised its stake to 71.6 per cent in the former Cầu Tre Export Processing JSC late last year.

Nguyễn Tấn Phước, deputy head of Hepza, attributed the increase in investment to an upgrade of infrastructure in IPs and EPZs.

During the period, the area of leased land was 68 hectares, a 1.7-fold increase compared to the same period last year.

Around 5.9 hectares of factory were leased, a 2.5-fold year-on-year rise, Phước said.

Hepza continues to encourage investment in high-tech and supporting industries as well as the four key industries of mechanical engineering, electronics and IT, chemicals, and food processing.

“Labour-intensive projects and those with high risk of pollution were rejected despite large investment capital,” he said.

Exports by enterprises in the IPs and EPZs rose by 27.24 per cent to $2.75 billion.

The target of $6 billion for this year’s exports is feasible as exports by enterprises in IPs and EPZs will increase for the remaining six months.

A total of 1,461 projects with combined investment of $9.71 billion, including 551 FDI projects worth a total of $5.55 billion, are operating in IPs and EPZs.

The number of labourers working in IPs and EPZs rose by 1,450 people to reach more than 285,900, including 2,660 foreign workers.

Source VNA

Leave a Reply

Your email address will not be published.