Investment flows to industrial zones

Monday, Dec 23, 2013 09:35

The $31 million Vie-Pan Techno Park project in Hiep Phuoc Industrial Park.—File Photo

HCM CITY (Biz Hub)— Companies in HCM City's industrial parks and export processing zones have reported an increase in investment and export revenues this year, the Export Processing and Industrial Zone Authority said on Friday.

They have attracted total investment of US$576.77 million this year, a 40 per cent increase year-on-year, Ho Xuan Lam, head of HEPZA's administrative office, said.

Foreign investment surged by 73 per cent to $358.5 million, including in 19 new projects worth $68.7 million, he said.

The $31 million Vie-Pan Techno Park project in Hiep Phuoc Industrial Park, a $9.8 million twine factory in Tan Phu Trung Industrial Park, and a $15 million drug storage project in Tan Tao Industrial Park are among the largest.

Twenty nine existing foreign projects brought in additional investment of nearly $290 million, he said.

Japan, the largest foreign investor in IPs and EPZs, accounted for half of the year's FDI, followed by Singapore (26 per cent) and Australia (14 per cent).

The remaining was from investors from Taiwan, Germany, Sweden, and Denmark.

Domestic investment rose by 7 per cent to US$218 million, all of it due to an increase in capital at existing firms.

New investors accounted for $125.9 million, a 10 per cent decrease year-on-year.

There are now nearly 1,300 projects with a total investment of $7.78 billion in IPs and EPZs, with 1,063 of them operational.

Exports have been worth $5.1 billion this year, an increase of 13 per cent despite the economic downturn.

Forty firms have shut down or reduced production, leaving more than 1,700 workers unemployed.

The number of workers fell by 2,700 to 268,800.

Tet bonuses

Ho Chi Minh City.— Photo cafef

Many companies in IPs and EPZs are trying to pay Tet (Lunar New Year) bonuses and for workers' bus tickets to return home for the year's most important festival.

But only 150 out of more 1,000 firms have so far reported about their bonus plans to HEPZA.

Most firms plan to pay a bonus equal to one month's basic salary.

The average basic salary is VND4.72 million per month at foreign firms and VND3.26 million at domestic companies.

Labour unions in co-ordination with employers are set to provide 6,000 free bus tickets to workers.

More than 3,400 gifts will also be made to disadvantaged workers. — VNS

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