Business Business

04/08/2018 - 08:20

The bridge of FDI enterprises

Having fostered the establishment of a playground for foreign direct investment (FDI) enterprises since 2013, after many missed occasions, at the end of June 2018, the Thua Thien Hue FDI Club has announced the Decision to establish and launch the Club Management Board. This is where the FDI enterprises community meet, share their work and support one another in production and business.

Workers at Hue SCAVI Garment Factory


As a company operating in the field of garment industry under the Scavi Group (France), after 10 years operating in the Phong Dien Industrial Zone, in 2017, Scavi Hue company made a breakthrough when the growth rate reached 40%, Export turnover hit USD 108 million and created jobs for 6,000 workers. In 2018, Scavi will continue to build 4 garment factories, bringing the total number of sewing lines to 150, creating jobs for 7,000 workers, striving reach the export turnover of USD 150 million.

Speaking of experiences in investment, Director of Scavi Hue, Mr. Tran Van My said: "Besides language and cultural differences, barriers from administrative procedures and high-quality human resources are the concerns of many foreign investors when investing in Vietnam in general and in Thua Thien Hue in particular".

General Director of Vietnam Hello International Limited Company Truong Quoc Cuong shared: “Having invested in Thua Thien Hue since 2002, in addition to production and business facilities in Huong So industrial cluster, we are currently investing in infrastructure in Tu Ha industrial zone (Huong Tra), however, due to difficulties in going though the administrative procedures, we had to prolong the time before carrying out the project, which causes difficulties for our enterprise. It is hoped that the FDI club will be a bridge for enterprises and government to meet and develop policies and mechanisms to remove difficulties and to further strengthen the capacity of Thua Thien Hue's FDI enterprises.

Workers at Hue SCAVI Garment Factory

Vice Chairman of the Provincial People's Committee Nguyen Van Phuong said: "Thua Thien Hue has become the destination of some corporations in the world in many different areas, such as Carlsberg (Denmark), Banyan Tree (Singapore), HBI (United States), Scavi (France), Luks Cement (Hong Kong), CP (Thailand) ... However, the activities of FDI enterprises in recent years still encounter many obstacles. It is difficult to gain access to financial and banking resources, to mobilize and train highly-skilled workers, to approach land resources, and regulations of the State ".

Common playground

Up to now, there are 96 foreign-invested projects with a total registered capital of over USD 3.5 billion. There are about 40 active FDI enterprises out of 70 that have operated effectively. In 2017, the FDI sector reached USD 800 million, contributed to the budget of USD 87.7 million, created jobs for nearly 20,000 workers.

Deputy Director of the Department of Planning and Investment, member of the FDI club - Le Dinh Khanh acknowledged: “We need to work out solutions to support FDI enterprises to develop and expand their production and business. Therefore, the club will become the common playground, the common voice in attracting, supporting and dealing with difficulties for FDI enterprises.”

The head of the FDI club, Mr. Tran Van My, said: “The first benefit that can be gained when participating in the FDI club is that the enterprises can promote their interests and have a strong common voice. The club will bring together businesses to overcome difficulties, contributing to increasing the attractiveness of the investment environment of Thua Thien Hue. At the same time, it is also a bridge bringing the aspirations of enterprises, entrepreneurs to provincial leaders”.

"When they can gain interests, they will have the motivation to build a strong image of foreign investment sector to attract investment and create a link between foreign invested enterprises and domestic and provincial enterprises, boosting trade among enterprises. The FDI community will also be responsible for contributing to the socio-economic development of the province through social welfare programs, developing business culture, building clean water systems and lighting in countryside area," said Mr. My.

The provincial FDI club consists of 21 members, who are leaders, entrepreneurs and managers in FDI enterprises with the desire to develop a strong business and FDI enterprises community, contributing actively to the socio-economic development of the province.

  Story and photos: Lien Minh