HCM City attractive investment destination for Europe: forum

Friday, Jul 01, 2022 07:33

HCM City calls for investment in many projects at the Viet Nam – Europe Business Forum held on Thursday. — VNA Photo Xuan Anh

HCM City offers numerous investment and business opportunities for European businesses, a Viet Nam – Europe Business Forum heard on June 30.

The event organised by the Investment and Trade Promotion Centre in HCM City heard that the city is soliciting investment in 197 projects in a number of areas such as traffic infrastructure, agriculture, housing, and healthcare.

They include the US$761 million Elevated Road No 1 from Tan Son Nhat Airport to the city centre and the $255 million Northern Saigon 2 Wastewater Treatment Plant in Thu Duc City.

As of last year the city had 1,044 projects set up by EU businesses out of the 2,263 they had in Viet Nam with investments totalling $6.45 billion, or 12.18 per cent of the city’s total FDI.

Vo Van Hoan, deputy chairman of the city People’s Committee, said: “With the EU’s assistance in the form of expertise, technology and finance, many urban infrastructure, agriculture and climate change projects have been launched.”

Dao Minh Chanh, deputy director of the Department of Planning and Investment, said the city has good road, rail, waterway, and air links with countries around the world, and more infrastructure projects are on the cards.

Multi-cultural HCM City is also a good place for foreigners to visit, work and live, he said.

“HCM City is prioritising attracting foreign companies with technological and financial capabilities that use renewable energy.”

The city has been making an effort to strengthen its investment climate by speeding up administrative procedures and improving its competitiveness in comparison with the rest of the country.

It offers a lot of incentives to investors waiver and reduction of income tax and import-export tax and land rentals.

For instance, exemption or a 10 per cent cut in income tax for 30 years is offered to businesses that produce goods that are globally competitive and have annual revenues of over VND20 trillion ($858 million).

Businesses can also qualify for these incentives if they regularly employ more than 6,000 workers.

Business opportunities

Viet Nam is focusing on global integration and has signed up for numerous free trade agreements, including one with the EU which facilitates exports between the two sides.

“EU exporters selling machinery, consumer goods and temperate climate food to Viet Nam can greatly benefit from this,” Hoan said.

At the forum, city officials apprised the EU delegation about start-up development strategies, the IT skills landscape and others relevant to them.

Marc Maurer, co-CEO of Swiss sports fashion manufacturer On, told Viet Nam News that his company has been investing in Viet Nam for 12 years due to its manufacturing capability and infrastructure.

The company had a relatively easy time investing in Viet Nam and received a great deal of support from local governments, he said.

Prince Donatus zu Schaumburg-Lippe, founding member of 3.O Labs and part of the EU business delegation, said his business focuses on blockchain technologies, and he is looking for promising investment opportunities in Viet Nam.

HCM City is the country’s largest hi-tech manufacturing and service centre with 17 industrial parks and two processing zones. — VNS

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