News dalla rete ITA

8 Febbraio 2018

Vietnam

THE PULL AND PUSH OF MEKONG DELTA INVESTMENT (PART 1)

In recent years, the Mekong Delta economy has been growing well, while the region’s infrastructure, business environment and workforce quality have improved, making the region increasingly attractive to investors. However, the Mekong Delta needs to ease bottlenecks in regional connections and infrastructure development if it is to attract major investors and better investment quality. Potential and advantages The Mekong Delta has become Vietnam’s biggest agricultural production center, accounting for more than 90 percent of the country’s rice exports and reaching an annual seafood output of 3.5-4 million tonnes. The region is also a top fruit and vegetable exporter. These developments make it increasingly attractive to domestic and foreign investors. Per capita gross domestic product (GDP) has reached an estimated US$2,700 per year, hitting US$3,500 in the region biggest city, Can Tho. Annual export revenues have amounted to US$13-15 billion. Rice, seafood and fruit are now the region’s biggest exports, yielding more than US$1 billion each. There are almost 200 industrial parks, including 177 industrial zones in the region for small to medium-sized enterprises. More than 53,000 businesses operate in the region, spanning varied fields of farm produce and seafood processing, urban development, transportation, trade, services and tourism. They provide jobs for more than two million people. Foreign direct investment (FDI) in the Mekong Delta has prospered since 2015 when it reached US$3.65 billion, representing nine percent of the country’s total. Increased investment has changed the appearance of some urban areas in the region. In the first 11 months of 2017, 8,300 enterprises totaling VND60.3 trillion in registered capital were established in the Mekong Delta, up 14.5 and 17.3 percent from the same time in 2016, respectively. During the same period, the region attracted an additional 121 FDI projects with a total registered capital of over US$2.06 billion, taking the total to 1,421 projects and more than US$20 billion. Long An Province topped regional provinces in terms of number of projects (84 projects), while Kien Giang Province took the lead in terms of registered capital (US$1.34 billion plus). In late October 2017, Mekong Delta provinces issued a list of 78 projects needing investment, including 33 real estate and tourism projects needing total capital of nearly VND7.8 trillion, and 45 agricultural, industrial, processing, manufacturing, and logistics infrastructure projects needing total estimated capital of VND150 trillion. Administrative and legal institutional reform and market entrance cost reduction have increased enterprise trust and helped businesses save time and decrease costs. (ICE HO CHI MINH CITY)