FDI in City industrial zones halved

Industrial zones in HCM City hope to attract investments worth US$500 million next year, according to the HCM City Export Processing and Industrial Zones Authority.

                    Tan Thuan Export Processing Zone in HCM City. - Photo Manh Linh

Exports by companies situated in Industrial parks (IPs) and export processing zones (EPZs) are expected to top $6 billion next year, Tran Cong Khanh, head of the HEPZA office, told a press meeting on December 30.

HEPZA continues to encourage investment in four key industries, including -- mechanical engineering, electronics and IT, chemicals and food processing, and supporting industries -- he said.

To achieve the target, it plans to expand Le Minh Xuan IP and complete the third phase of Hiep Phuoc IP.

It will develop areas set aside for supporting industries in Hiep Phuoc, Le Minh Xuan No.3 and Automotive-Mechanical IPs.

Tran Viet Ha, head of the investment management department, said foreign direct investment halved this year to $255.61 million.

Investments by domestic enterprises were worth VND5.2 trillion ($237.71 million), a year-on-year decrease of 14 per cent, he said.

He attributed the decline to a shift in investment towards high-tech industries instead of labour-intensive sectors, meaning there was a fall in investment in sectors like textiles and footwear.

Exports by enterprises in IPs and EPZs were estimated at $5.86 billion.

A total of 1,385 projects with a combined investment of $9.22 billion, including 535 FDI projects worth $5.41 billion, are operating in IPs and EPZs.

They employ more than 285,700 workers, including 2,346 foreign nationals.

Tet bonus

The average Tet (Lunar New Year) bonuses to be paid by domestic and foreign enterprises in IPs and EPZs are respectively VND7 million (US$300) and 6.8 million (US$295), Khanh said.

The highest is VND1 billion (US$43,480) to be paid by a domestic company, he said.

The lowest is VND3.5 million (US$152).

A total of 6,000 workers will also get bus tickets to return home for Tet and gifts.

Source VNS