Mon. Nov 21st, 2022

Export processing and industrial zones in Ho Chi Minh City are
showing signs of recovery with increased investment and higher
production levels, according to the city’s Export Processing and
Industrial Zone Authority (Hepza).

In the first quarter
of the year, local EPZs and IZs attracted a total investment of nearly
145 million USD, a year-on-year increase of more than 21 percent, said
Ho Xuan Lam, Hepza’s office chief.

Of the total, he said
that 123 million USD was from foreign investors, an increase of 80
percent compared to the same period last year. Domestic investors poured
in nearly 22 million USD, a year-on-year decline of 57 percent.

During this period, about 12 projects received investment certificates
to set up in local zones. Five others have been permitted to add
capital.

Two new projects have been put into operation, and another is waiting for a construction licence.

“Production in the first quarter in these zones was more stable,
with no bankruptcies or termination of operations,” Lam told the English
language daily Vietnam News. “Some of the companies in food and
foodstuff processing want to widen their investments.”

He said that several sectors, such as the building materials industry, still face challenges.

To help companies solve difficulties, Hepza promises to hold
conferences to give companies located in Hepza a chance to discuss their
problems with local authorities and officials in the banking and tax
sectors.

Hepza also plans to open trade promotion fairs in
regional countries such as Laos and Cambodia to widen export
markets.

According to Lam, by the end of March, there were about 1,254 projects, worth a total of 7.3 billion USD, in local zones.

Of the total, foreign investors got involved in 495 projects with a
total capital of nearly 4.4 billion USD. Domestic investors poured
2.9 billion USD into another 759 projects, he said.

Last
year, due to tough economic conditions, investment in local industrial
zones and export processing zones fell substantially compared with
previous years.-VNA

By vivian