| The construction progress of Aeon Mall project in Hue being accelerated. Photo by: BAO PHUC
According to statistics from the Foreign Investment Agency - Ministry of Planning and Investment, the total newly registered, adjusted or contributed capital of foreign investors reached nearly 16.24 billion USD as of 20th July, marking an increase of 4.5% as compared to that of the previous period. The implemented capital of FDI is estimated at 11.58 billion USD, witnessing a rise of 0.8% as compared to that of the same period in 2022.
Thua Thien Hue is one out of 52 provinces and cities attracting investments from foreign investors. However, it owns only 5 FDI projects with registered capital of 39 million USD, which is still quite modest compared with other provinces and cities.
According to the Foreign Investment Agency, the leading one among the top 10 provinces and cities attracting FDI inflows is still Hanoi, with a total registered investment capital of more than 2.28 billion USD, accounting for nearly 14.1% of the total registered capital and marking an increase of 2.76 times as compared to the same period in 2022. The second-ranked city is Hai Phong, with a total registered investment capital of more than 2 billion USD. Ho Chi Minh City takes the third place, followed by Bac Giang, Binh Duong, and so on.
The Central - Central Highlands region has Nghe An on this list, with a total registered capital of more than 427 million USD. This is not the first year that Nghe An reaches the top 10 localities attracting the most FDI in the country.
| Laguna Lang Co Resort being a classy and luxurious destination invested by FDI enterprises. Photo: H. Thu
Nghe An has been known as a province with many good solutions to attract foreign investors. And one that is said to be effective for attracting FDI inflows to Nghe An is the provincial government’s regularly chairing dialogues with the business community, especially FDI enterprises, to promptly grasp their problems to propose suitable solutions. At the same time, the provincial government also proactively approach and promote opportunities, mobilize international corporations and investors to invest in the province in order to attract large motivational investment projects, creating a new investment wave.
Thua Thien Hue has also organized many domestic and foreign investment promotion conferences in both face-to-face and online formats. After the conferences, many foreign investors chose Hue as their destination. The most recent FDI project is the Aeon Mall Hue project, with a total investment of at least VND 3,916 billion, started in early 2023. Prior to that, there were a number of projects that went into effective operation such as Laguna Lang Co Resort, Hue Scavi Company, Huda Brewery, etc., and some ongoing projects such as Kanglongda Hue Factory, Kim Long Motors Hue Complex of Production and Assembly, with a total investment of more than 3,300 billion VND.
As a matter of fact, the more factories come into operation, the more jobs will be created, which ensures stable income for people and significant contribution to the budget. Take Huda Brewery belonging to Carlsberg Group (FDI-invested enterprise) as an example. It contributes thousands of billions of dongs to the state budget each year, accounting for about 30% of the province’s total budget revenue. If there are a few other factories like that, worries about revenue loss of the provincial budget will be eased. Unlike the collection of land use fees which is unstable over years due to market fluctuations and exhaustibility of land, this is considered a highly sustainable source of income.
However, the problem is how to attract FDI enterprises to choose Thua Thien Hue as a destination? Perhaps more practical and effective strategies and solutions are needed just like the way a department was established in Thanh Hoa to support FDI enterprises, specifically Japanese enterprises, considering the fact that businesses from the land of cherry blossoms were interested in investing in this locality and the benefits it brought; a quick response team was formed in Bac Ninh to support businesses, or a special working group was set up in Ha Tinh to support investors.
Thua Thien Hue has also founded 4 working groups led by the Chairman and Vice Chairman of the Provincial People’s Committee to support investors. As a result, many problems have been promptly removed and the progress of some projects has been accelerated. However, compared to some provinces in the Central region, Thua Thien Hue is still behind Thanh Hoa and Quang Ngai in calling and attracting foreign investment. Therefore, more efforts are still needed to attract FDI inflows while Thua Thien Hue is considered to possess many potentials, strengths and advantages such as a deep-water port, an abundant labor market, an international airport, etc.
In order to do so, it is also necessary to establish a group to support FDI enterprises, organize more dialogues and listen to FDI enterprises. No matter where the problem emerges, it should be dealt with so as to improve the investment environment and build a friendly government image. When businesses are listened to and respected, and the investment environment is favorable, the investors will surely come.