Huge FDI capital flows into IZs, EZs
Huge FDI capital flows into IZs, EZs
With their streamlined regulations and many advantages Vietnam’s industrial and economic zones (IZs & EZs) have become home to the successful operation of many foreign owned affiliates.
As of March 2014, more than 50% of all foreign investment in Vietnam was concentrated in the industrial and economic zones, with roughly 5,300 foreign businesses reporting more than US$112 billion in registered capital.
In the first quarter of this year alone, there were 70 FDI projects invested in IZs and EZs nationwide with combined registered capital of more than US$800 million.
A typical project is Triple Eye Infrastructure from Canada, which is constructing a 200-bed hospital in Hai Duong’s Dai An IZ at an estimated cost of US$225 million.
The Ministry of Planning and Investment reported that these FDI projects are primarily specializing in telecommunications and support industries. World-wide names making an appearance included Samsung, LG and Nokia.
These projects have attracted a large number of satellite investors that are now jostling to get in on the action, raising expectations of leading economists and market analysts optimistically to predict that investment and production in IZs and EZs will continue to grow.
However, the government has been urged to loosen credit to create the best possible conditions for businesses to develop infrastructure at IZs and EZs, cautions Tran Duy Dong, Deputy Director of the Economic Zone Management Department.
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