HCMC industrial parks, zones record 23% rise in investment
INVESTMENTS in Ho Chi Minh City’s (HCMC) industrial parks and processing zones have risen by nearly 23 per cent year-on-year so far this year to $236.1 million.
Foreign direct investment was worth around $125 million, double the amount that came in during the same period last year.
Companies constructing factories and warehouses accounted for nearly 69 per cent of the investment, with pharmaceuticals, software and food processing also accounting for major shares.
HCMC Export and Processing Zones Authority head Hua Quoc Hung said investment was increasing because Vietnam and the southern city had been controlling the pandemic well.
He said HCMC and his agency had been helping investors overcome problems caused by the pandemic and global economic instability, which would also attract further investment.
But land was running out in the city’s industrial parks and processing zones, while new industrial parks were launching too slowly due to land compensation and legality problems, he said.
Hung said his agency would speed up the construction and opening of new industrial parks to offer more land to investors.
It would also work with other agencies to acquire more land for industrial zones for use in 2021-2025, he said.
Existing zones also have problems such as lack of technical infrastructure and pollution, he added.