HCM CITY DRAWS OVER $2.86B IN IZ INVESTMENT DURING 2020–25

Fifteen hi-tech projects, accounting for 6 per cent of the new projects, have a combined investment of nearly US$860 million, representing 44.17 per cent of the total newly registered capital.

At an FDI company in HCM City. — VNA/VNS Photo

HCM CITY — Investment inflows into export processing and industrial zones (IZs) in HCM City have surpassed US$2.86 billion during the 2020–25 period, equivalent to 114.6 per cent of the initial $2.5 billion target, according to the HCM City Export Processing and Industrial Zones Authority (HEPZA).

Of the total, foreign investment has exceeded $935.3 million, including 75 newly licensed projects with over $334.3 million in capital. Domestic investment reached over VNĐ45.4 trillion (roughly $1.9 billion), including 202 new projects worth nearly VNĐ37.9 trillion.

Lê Văn Thinh, head of HEPZA, said on Monday that the period has seen a clear shift toward high-tech and value-added sectors such as software, telecommunications, electronics, pharmaceuticals, precision mechanics, and electrical equipment.

Notably, 15 hi-tech projects (6 per cent of the new projects) have combined investment of $859.87 million, or 44.17 per cent of the total newly registered capital.

The influx of new projects has also created over 26,000 new jobs, bringing total employment in the zones to more than 257,700.

On average, over 85 per cent of workers have undergone formal training, and many companies now maintain university-level qualification rates exceeding 90 per cent among employees, Thinh added.

Efforts to support start-ups and key product development focuse on rubber – plastic, mechanics – automation, and food processing sectors. Land is being prioritised for hi-tech and environmentally friendly projects, with plans to establish specialised industrial zones dedicated to these industries.

Under the city's development master plan for 2021–30, with a vision to 2050, the current 23 export processing and industrial zones covering 5,900 ha will be maintained. An additional 2,465 ha is earmarked for 10 new IZs, bringing the total area to 8,369 ha across 33 zones.

To further attract investment, HEPZA has overhauled its management model, strengthened the "single-window" administrative framework, and cut administrative processing times by 30 per cent through streamlining its organisational structure and workforce. — VNS

Source: VNS

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