That is the information released at the meeting on socio-economic situation in the first 6 months of the People’s Committee of Ho Chi Minh City, which was held on July 3rd. Accordingly, HCMC remains an outstanding investment destination for foreign investors to set up company in Vietnam.
Specifically, HCMC has granted investment registration certificates to 483 FDI projects with a total investment capital of 486.53 million USD (equivalent to 128.8% of new projects and 121.8% of investment capital over the same period).
With the newly licensed projects, in terms of sectors, the manufacturing and processing industries attract the most investment capital with 27.2%; followed by real estate business with 25.5%… In terms of the nationality of investors, Korea has the largest proportion of investment capital with 30.3%; followed by Singapore with 22%…
The city also licensed 136 projects to increase capital with total investment capital of 417.21 million USD (equaling 137.4% of adjusted projects and 113.1% of investment capital over the same period).
In addition, the City also approved 1,421 cases where foreign investors implemented procedures to contribute capital, purchase shares, buy back capital contributions from domestic enterprises, with registered capital equivalent to 3.28 billion USD (compared with the same period, equivalent to 134.6% of cases and 153.7% of investment capital).
In this form of investment, in terms of industry/sector, real estate business has the most investment capital with 43%; followed by professional, science and technology activities with 21.5%…
In terms of both capital attracted in the form of granting investment registration certificate and capital attracted through the form of capital contribution, share purchase, capital contribution in the domestic enterprises, HCMC has attracted 4.18 billion USD (equal to 144.1% over the same period).
According to statistics, so far in HCMC, there are 7,910 effective FDI projects with total investment capital including new and capital increase projects of 45.05 billion USD.
In the first half of 2018, the Management Board of the Export Processing and Industrial Zones of HCMC has granted 12 projects; Ho Chi Minh City Hi-tech Park Management Board has granted 3 projects and Ho Chi Minh City Department of Planning and Investment has granted 468 projects.
One noteworthy point is that newly licensed FDI projects in HCMC have increased in terms of number of projects and registered capital compared to the same period last year, but the scale of investment is still small (average only 1 million USD/project).
In particular, the project of Samil Pharmaceutical Co., Ltd. (Korea) in Saigon Hi-Tech Park with registered capital of 40 million USD is one of the largest projects. The project is built on an area of 7,500 m2, with the goal of developing and producing eye drops (single dose and multiple doses); research, development and production of special drugs after eye surgery, stem cell medicine for eye treatment… According to the plan, the project will be built immediately after being licensed and officially started operation from the end of 2021.
Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.