Southern province welcomes new-generation FDI

Dong Nai province attracts 281 million USD in FDI, with eight new projects being licensed and 14 projects receiving additional capital in the first two months of this year. (Photo: VNA)

The southern province of Dong Nai has seen positive changes in foreign direct investment (FDI) in the first two months of this year as its newly-licensed projects use advanced technology, are less labour intensive and more environmentally friendly.

According to the Dong Nai Industrial Zone Authority (DIZA), the province attracted 281 million USD in FDI, with eight new projects being licensed and 14 projects receiving additional capital, in the time under review.

Head of DIZA Pham Manh Cuong said that new FDI projects in the province do not have too much capital but all use advanced technologies in the logistics industry, which meets the province’s requirements and orientations which will limit labour intensive projects using outdated technologies.

The province has been speeding up projects on new industrial zones and infrastructure works including Long Thanh International airport, Bien Hoa – Vung Tau express, and Ho Chi Minh City’s Ring Road 3 and Ring Road 4.

Long Khanh city in the southern province of Dong Nai.(Photo: dongnai.gov.vn)

Such improved infrastructure is expected to make the province more attractive to investors, Cuong said.

For the last two years, FDI to Dong Nai reduced and for the first time in the last 30 years, Dong Nai was out of the top five leading FDI recipients in Vietnam, Cuong said, adding that a lack of land funds is one of its difficulties in attracting investors.

Enterprises from Japan, the Republic of Korea, Taiwan (China), and Europe are eyeing to implement projects in the province but there is no land available to meet their demand, Cuong said, noting that the province’s industrial zones projects are just at land clearance phase.

Once the bottleneck in infrastructure is removed, FDI flows into Dong Nai will be much stronger, which helps the province regain its position, Cuong said./.