City. Ho Chi Minh City is expected to bring investment procedures to "one-stop" management at one focal point, thereby striving to attract about 50 high-tech FDI projects in 2024-2025, while increasing by 50%. The number of the world's largest multinational corporations comes to invest locally.
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Lack of advantages to attract billion-dollar projects
According to the City Statistics Department. Ho Chi Minh City, by the end of 2023, total foreign direct investment (FDI) registered in the area will reach more than 5,85 billion USD, accounting for 16% of the country's total FDI investment capital and growing strongly in 48,5% over the same period in 2022.
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The results of attracting FDI in the past year brought the city. Ho Chi Minh became a bright spot in provinces and cities across the country. However, researchers from Banking University of Ho Chi Minh City. Ho Chi Minh, also pointed out the limitations in the competitive advantages between localities in attracting FDI capital. The city's FDI attraction capital value is gradually decreasing compared to previous years and its ability to attract large projects is lower than Hanoi, Hai Phong, Binh Duong and the provinces of Quang Ninh and Bac Giang.
Specifically, for the whole year 2023, export processing zones and industrial parks in the city. Ho Chi Minh attracted 16 new FDI projects with a total registered capital of 63 million USD. In the years 2017-2022, the entire city has only 3 large-scale projects chosen by FDI investors, including: 650 million USD project of Techtronic Tools-2019; 300 million USD project of Wanna Explore-2019; and Samsung's capital increase project of 841 million USD in 2022. Meanwhile, Binh Duong, Long An, Hai Phong... in turn attracted projects of 1-3 billion USD from large foreign corporations.
Experts say that there are many reasons why the city has reduced its advantage in attracting FDI. Among them, the most prominent is the increasingly narrowing industrial land fund and facing many obstacles in the site clearance process. According to statistics, by the end of 2023, the city still has 15.000/60.000 hectares of industrial land with legal and site clearance problems. Meanwhile, local projects expected to call for FDI investment are mainly in the fields of processing and manufacturing; science and technology; media information and real estate business. These fields all need large land funds for long-term investment.
The representative of the Vietnam Confederation of Commerce and Industry (VCCI) said that in the period 2017-2022, the provincial competitiveness index (PCI) of the city. Ho Chi Minh continues to decline. In 2022, the city will rank 27th in the country's PCI rankings, down 10 places compared to 2017. Meanwhile, Quang Ninh continuously leads, Bac Giang rises from 30th to 2nd, Hai Phong from 9nd to 3nd. XNUMX to rank XNUMX. This shows that the city has not had much improvement in the business environment and administrative reform to create convenience and friendliness for foreign investors.
Need commitments to "fly with the eagles"
In order to regain the "leading" position in attracting FDI capital, the city. Ho Chi Minh City, in January 1, issued a Project to improve the efficiency of attracting FDI in the period 2024-2023, with a series of solutions including: Completing infrastructure planning, perfecting priority policy mechanisms. investment incentives and set specific goals in retaining and attracting more of the world's largest multinational corporations.
Mr. Nguyen Anh Thi, Head of the City Hi-Tech Park Management Board. Ho Chi Minh City (SHTP) said that this unit has proposed to the City People's Committee to re-establish the "one-stop shop" mechanism in investment licensing. City leaders also pledged to bring investment procedures to one focal point in the near future. In particular, investment projects in SHTP and export processing zones - industrial parks will be led by management boards. For businesses investing outside this area, they continue to be assigned to the Investment and Trade Promotion Center (ITPC) to carry out from promotion to operational implementation.
Accordingly, the two years 2024-2025 City. Ho Chi Minh City will aim to attract 50 high-tech projects with a total capital of over 3 billion USD. By 2030, increase by 50% the number of multinational corporations among the world's 500 largest corporations (ranked by Fortune Magazine - USA) with presence and operations in the city.
According to the research team of Ho Chi Minh City Banking University. Ho Chi Minh City, to achieve these goals and at the same time improve the efficiency of FDI investment capital, local governments need to make commitments to "fly with the eagle".
In particular, in addition to focusing on expanding Pham Van Hai I and II industrial parks and completing connections to large infrastructure projects such as: Metro No. 1, Ring Road 3, Thu Thiem 4 bridge... From there, it is necessary to mobilize Use specific preferential policies to develop new and more attractive FDI attraction policies.
Economic experts say that City. Ho Chi Minh still has the most advantage in Vietnam in technology transfer activities by foreign investors. Therefore, preferential policies and investment incentives need to continue to provide regulations to support research and development (R&D); Support to improve the quality of human resources for technology transfer and supply chain participation. In addition, the city also needs to proactively guide technology transfer practices, update and simplify legal procedures to create favorable conditions for international corporations to connect with suppliers and supply chains. applied in Vietnam.
