Foreign investment up 30% in HCM City
Foreign investment up 30% in HCM City
Foreign direct investment registered in HCM City in the first 11 months of the year amounted to US$1.6 billion, a year-on-year increase of 30 per cent.
The figures were released at a meeting of the HCM City People's Committee on Wednesday.
The director of the HCM City Department of Planning and Investment, Thai Van Re, said FDI was expected to reach $2 billion this year, much higher than the figure of $1.3 billion last year.
By November 20, the city had 412 FDI projects licensed and 120 others approved for capital expansion.
As for domestic investment, the city had also licensed 23,675 businesses, an increase of 7 per cent, with total investment of VND107.6 trillion ($5.12 billion), down 39 per cent year-on-year.
At the same time, some 2,200 businesses (equalling 9.3 per cent of the newly established businesses in the city) have been dissolved.
More than 20,000 new businesses were established in the first 11 months, a good sign for the city's economy, said Re.
He said the city's total exports reached $24 billion, down 7.3 per cent over the same period last year.
The decline in exports of crude oil is one of the major causes behind the decrease in HCM City's export value over the period. The city's total imports in the first 11 months reached $23.54 billion, up 13.8 per cent over last year. Most of them were materials for production and processing lines, such as dairy products, and materials for manufacturing of textiles and garments, footwear, pharmaceuticals, plastics and steel sectors.
Le Hoang Quan, chairman of the HCM City People's Committee, said the rising gross domestic product (GDP) had indicated the recovery of the city's economy.
The GDP had grown 7.6 per cent in the first quarter, 8.1 per cent in the second, 10.3 per cent in the third, and is expected to reach 10.7 per cent in the fourth quarter.
"In the last months of the year, HCM City focuses on re-structuring the city's economy through re-arranging State-owned enterprises; re-structuring public investment and re-arranging its finance-banking sector," said Quan.
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