A view of Linh Trung Export Processing Zone II in HCM City. (Photo: thonggiocongnghiep.com)
Foreign direct investment (FDI) committed for export processing zones (EZs) and industrial parks (IPs) in Ho Chi Minh City plummeted 69.5% year-on-year to $116 million in the first three months of this year, according to the HCM City Export Processing and Industrial Zone Authority (Hepza).
The fall in FDI has stemmed from the addition of two large apparel and textile projects in the same period of last year, including the capital hike of $160 million by British Virgin Islands-based Gain Lucky Limited, a Hepza representative explained.
The city does not aim for labor- and land-intensive industries such as apparel, the representative added.
Meanwhile, domestic companies pledged to invest nearly 1.8 trillion dong ($80.4 million) in EZs and IPs in the first quarter of 2016, representing an 80% year-on-year increase.
Local investment helped raise pledged investment in the city’s export processing zone and industrial parks to a total of $198 million in the three-month period, down 53% from a year earlier.
Exports of 500 firms operating in those concentrated zones increased 17.5% year-on-year to nearly $1.3 billion in the period, said Tran Viet Ha, head of the Hepza’s Investment Department.
As of the end of March 2016, domestic and foreign firms had registered to invest in 1,390 projects with a combined capital of $9.17 billion in HCM City’ EZs and IPs. Among them, overseas players had 554 projects worth $5.42 billion.