IPs to see more foreign funding

Wednesday, Jan 20, 2016 08:05

A photo shows Tan Thuan Processing Zone, HCM City. Foreign investment in the city's industrial parks and export processing zones is predicted to increase this year as Viet Nam will sign the TPP next month. — VNA/VNS Photo Manh Linh

HCM CITY (Biz Hub) — Foreign investment in HCM City's industrial parks and export processing zones is expected to rise this year as Viet Nam is scheduled to sign the Trans-Pacific Partnership (TTP) on February 4, according to the HCM City Industrial Parks and Export Processing Zones Authority (HEPZA).

Last year, foreign capital in IPs and EPZs rose to US$553 million, 59 per cent higher than in 2014.

Most of the foreign enterprises are from the British Virgin Islands, South Korea, Singapore, Hong Kong, Japan, Taiwan, France, the US, China and Australia. They operate mostly in textiles, food and chemicals, among other products and services.

HEPZA targets attracting investment capital of $700 million from foreign and domestic enterprises.

Last year, the IPs and EPZs lured more than $840 million in total investment, an increase of 11.74 per cent compared to 2014.

Capital from domestic projects, however, fell by about 29 per cent.

This year, HEPZA will focus on the support industry which serves four main industries of mechanics, electronics-computers, chemicals, food processing and high technology.

Support industry

It will build areas for the support industry at the Hiep Phuoc IP in Nha Be District and Le Minh Xuan 3 IP in Binh Chanh District, according to Tran Cong Thanh, head of the HEPZA's management office.

Speaking at a press meeting held yesterday, Thanh said that HEPZA aimed to improve links between foreign and domestic enterprises.

More investment promotion programmes would be carried out in Japan and Korea, he added.

HEPZA will continue to promote investment in the Vie-Pan Techno Park in Hiep Phuoc Industrial Park.

Thanh said that work would also start this year on the second phase of the Vie-Pan Techno Park.

Warehouses at IPs Linh Trung, Dong Nam, Hiep Phuoc and Tan Thuan are expected to be completed later this year.

Care for workers

Nine kindergartens that serve the children of 2,840 workers opened last year at several IPs in HCM City.

Three more will open this year and construction on four more kindergartens will begin this year.

Bus tickets to go home for Tet will be given to workers from northern and central provinces, Ha Noi, the Cuu Long (Mekong) Delta provinces of Bac Lieu, Ca Mau and Kien Giang, and the two Central Highlands provinces of Dak Lak and Gia Lai.

For workers who cannot return to their hometowns, entertainment programmes will be offered during the Tet holiday.

This year, the average Tet bonus will be more than VND6 million ($270) per worker, according to Thanh.

The maximum will be VND600 million ($27,000) for employees at domestic enterprises; and VND197 million (nearly $8,800) for employees at foreign-invested companies. The minimum will be VND3 million ($133). — VNS

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