Northern IZs and EPZs draw more investment

Notable was Taiwan ’s WAH YUEN Technology Holdings Limited’s 200 million USD project to produce laptops, LCD television components, and other electronics products at the Vinh Phuc Industrial Zone.

Other prominent investments included the Japanese Business Association’s 30 million USD investment in the Que Vo Industrial Zone, and another 32 million USD in the Dai Hong Hoan Industrial Zone, as well as the Philippine’s URC Asean Brand’s 38.16 million USD project to manufacture soft-drinks and confectionary products, and DABACO Infrastructure Company’s 80 million USD project.

The conference brought together 700 local and foreign investors, and provided them opportunities to explore and discover investment opportunities in northern industrial zones (IZ), export processing zones (EPZ) and economic zones (EZ).

Speaking at the opening ceremony, Deputy Minister of Planning and Investment Nguyen Chi Dung affirmed successes of the 20-year renewal process that has helped shape a new national economy and make the country an attractive and friendly destination for foreign investors.

By the end of 2008, more than 10,000 FDI projects had been licensed, with over 150 billion USD in total registered capital, of which 52 billion USD has been disbursed.

Dung hailed IZs, EPZs and EZs for their contribution to national economic development, particularly in attracting foreign investment, and pointed out the fact that FDI projects make up 17% of Vietnam’s GDP.

Amid this year’s economic decline, which is having an adverse impacts on nearly every layer of the economy, the government has adopted a state budget-sourced financing mechanism to support infrastructure development for IZs located in areas that are facing particular difficulties, he said.

He expressed the ministry’s willingness to collaborate with local authorities in efforts to create favourable conditions to encourage investors, and promote them to do long-term business in the country.

At the two-day conference, participants will focus on seeking ways to promote investment in a time of economic turmoil, as well as discuss solutions to environmental pollution and destruction.

Through their experiences in Viet Nam , many foreign investors said they are optimistic that FDI inflows remain strong.

A representative of Japan ’s BTB company, which has been operating in Viet Nam for more than 17 years, said the Vietnamese government has exerted great effort toward streamlining investment procedures. However, it should continue to look at even more preferential options for supporting investors’ long-term interests in the country.

Also at the conference, local and foreign investors held more than 1,000 meetings and discussions with the management boards of IZs, EPZs, and EZs in the northern region, said the organisers.

The IZ and EPZ Management Department of the Ministry of Planning and Investment has reported that the country’s 54 cities and provinces are home to 219 IZs, EPZs and EZs thus far, which cover a total land area of 61,472ha.

IZs and EPZs nationwide are home to 3,564 foreign-investment projects, with over 42.6 billion USD in total capital; EZs have 72 FDI projects valued at nearly 20 billion USD.

Despite consequences of the current economic crisis, in 2008, IZs nationwide were home to 2,250 operating FDI projects, worth 16.2 billion USD, and 2,258 locally-invested projects capitalised at 121 trillion VND.

That year, IZ businesses reported revenues of 28.9 billion USD, an increase of 29 percent against 2007. Their export value hit 14.5 billion USD, a rise of 34% against 2007, and accounted for 24.7% of the nation’s export value.