In the first eight months of 2023, foreign direct investment (FDI) into Ho Chi Minh City reached over US$1.9 billion. This figure reflects Ho Chi Minh City's efforts in attracting investment as well as implementing breakthrough solutions to address challenges for businesses, especially high-tech, low-emission projects.
Intel Corporation has announced that it has completed the necessary paperwork to implement phase 2 of its Intel factory in the Ho Chi Minh City High-Tech Park. Accordingly, the corporation will invest an additional $475 million, bringing the total investment to nearly $1.5 billion over 13 years, aiming to improve the operational efficiency of the factory producing the 13th generation Raptor Lake and next-generation Meteor Lake processors. To date, the factory in Vietnam accounts for over 50% of Intel's global assembly and testing output.
To provide maximum support for businesses, the Ho Chi Minh City People's Committee has directed the establishment of a working group to address obstacles, negotiate and propose policies to support research and development activities, and continue to assist Intel Corporation in effectively implementing its ongoing project in the High-Tech Park, as well as to encourage the expansion of Intel's factory in Ho Chi Minh City in the future. The results will be reported to the Prime Minister in September 2023.
Intel's factory in Ho Chi Minh City (Photo: Intel)
Also in Ho Chi Minh City, Samil Pharmaceutical Co., Ltd. (Samil) announced that it has invested $92.5 million in building a pharmaceutical manufacturing plant. Construction and installation of machinery and equipment have been completed, and the company is applying for GMP certification to begin operations.
However, the company encountered numerous difficulties in the project approval process and delays in VAT refunds, causing significant financial strain on research and expert recruitment costs.
The difficulties faced by this business were addressed by Ho Chi Minh City leaders at the dialogue conference between Ho Chi Minh City leaders and Korean businesses held in August 2023. Mr. Nguyen Tien Dung, Deputy Director of the Ho Chi Minh City Tax Department, stated that although the business had an investment certificate and a business license, according to the regulations on tax refunds in Decree 19/2023 and Circular 13/2023, one of the procedures for receiving a tax refund is a document approving the conditional business line.
According to Mr. Dung, after the high-tech zone sent a letter to the Ministry of Health requesting their input on granting an investment certificate to Samil, the Ministry supported the initiative and requested the high-tech zone to guide the company in completing the procedures for obtaining a certificate of eligibility to conduct pharmaceutical business in accordance with regulations.
Removing obstacles for Intel and Samil demonstrates Ho Chi Minh City's efforts to improve the investment environment and support businesses in attracting high-tech, low-emission foreign investment projects.
According to a report by the Ho Chi Minh City Statistics Department, in the first eight months of 2023, the total foreign investment in Ho Chi Minh City reached over US$1.9 billion. Of this, 762 new investment projects were granted licenses with registered capital of US$390 million, an increase of 59.1% in the number of projects and 26.2% in capital compared to the same period last year. For projects with adjusted registered capital, there were 194 projects with an increase of US$582 million, an increase of 102% in the number of projects.
A highlight in attracting FDI to Ho Chi Minh City is the significant increase in capital invested in professional, scientific , and technological activities. Of the 194 projects that adjusted their registered capital, 50 projects were in the professional, scientific, and technological sectors, with a registered capital increase of US$290 million, accounting for nearly 50% of the total adjusted registered capital.
Attracting FDI into science and technology sectors is also consistent with Ho Chi Minh City's future orientation of attracting investment in high-tech, labor-intensive, and environmentally friendly industries.
High-tech, low-labor-intensive, and environmentally friendly industries are priority sectors for attracting FDI in Ho Chi Minh City (Illustrative image).
According to experts, with the National Assembly's recent approval of Resolution 98/2023/QH15 on piloting some specific mechanisms and policies for the development of Ho Chi Minh City, effective August 1, 2023, many administrative bottlenecks related to business investment activities will be quickly resolved. These include the removal of procedural obstacles related to construction, fire safety, and the reinvestment in road, electricity, and healthcare infrastructure, which have been pending for many years.
More importantly, the maximum application of electronic public administrative services helps to digitize administrative procedures, license applications, and resolve issues, ensuring transparency in timelines. This allows businesses to conveniently track the progress of their applications and proactively plan their production and business activities.
Resolution 98/2023/QH15 of the National Assembly on piloting a number of special mechanisms and policies for the development of Ho Chi Minh City includes 44 mechanisms and policies in 7 areas, expected to be a breakthrough in unlocking resources, maximizing potential and advantages, creating momentum for development and bringing Ho Chi Minh City back to its original development trajectory, worthy of its role as the economic locomotive of the whole country. Resolution 98 stipulates the largest number of special mechanisms and policies ever approved by the National Assembly. The areas to which these special policies apply include: Investment management; Finance and budget; Urban planning and resources - environment; Priority sectors for attracting strategic investors to the city; Science and technology management and innovation; Organizational structure of Ho Chi Minh City's government; Organizational structure of Thu Duc City's government… According to the Chairman of the Ho Chi Minh City People's Committee, Phan Van Mai, Resolution 98, passed by the National Assembly, includes many new mechanisms and policies that create conditions for Ho Chi Minh City to unlock resources, create momentum for development, and maximize the city's potential and strengths to match its position as the leading economic and social hub of the Southeast region and the whole country. The Resolution not only resolves current obstacles the city is facing but also creates new impetus for the city's development in the future… |
Ngoc Chau
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