US firms eye expanding investment in HCM City

by NDO/VNA04 February 2021 Last updated at 11:00 AM

A corner of Ho Chi Minh City. (Photo: VNA)
A corner of Ho Chi Minh City. (Photo: VNA)

More and more US businesses have been looking to pour capital into or expand their existing investment in Ho Chi Minh City, especially in hi-technology, electronics, and telecommunications, as well as other areas where the city has strengths.

Municipal authorities have granted a certificate to the US’s Intel Products Vietnam (IPV) Co. Ltd, allowing it to add US$475 million to its project in the city’s hi-tech park and bring the total to over US$1.5 billion.

Vice President and General Director of IPV, Kim Huat Ooi, affirmed that it will not reduce the size of its factory in Vietnam and plans to continue pouring in huge sums in the future.

IPV is one of ten Intel production facilities worldwide and receives the largest high-tech investment in Vietnam coming from the US.

According to Hua Quoc Hung, head of the HCM City Export Processing and Industrial Zones Authority (HEPZA), the city’s industrial parks are home to eight foreign-invested electronics projects with capital over US$20 million. The largest is a plant worth US$1.066 billion belonging to the US’s First Solar Co., Ltd.

Statistics show that over 160 US businesses are now investing in HCM City.

The southern hub is an attractive destination for new investment flows from multinational corporations, especially US tech firms moving their production out of China.

Its sound technology infrastructure, smart transport, and skilled workforce are advantages helping the city be more attractive in the eyes of investors.

Municipal authorities have rolled out specific orientations to strengthen cooperation with the US in the 2020-2025 period, focusing on expanding US investment in the city’s scientific and technological services supply chain, promoting innovation, turning the city into a smart city and an international financial centre, and forming a creative and interactive urban area in the city’s east.

Analysts have said the city needs to showcase its unique advantages in order to stand out among investment destinations so as to attract more foreign investment, especially from the US.

City posts economic growth in January

Despite the ongoing complex developments of the COVID-19 pandemic, the city’s economy saw a variety of bright spots in the opening month of 2021.

Vice Chairman of the municipal People’s Committee Vo Van Hoan said that total retail sales of goods and revenue from consumer services in January reached nearly VND120 trillion (US$5.2 billion), up 4% year-on-year, while State budget collections totalled VND42.5 trillion, up 2.86%.

According to a report from the municipal Department of Planning and Investment, almost all sectors posted growth. Exports turnover enjoyed a year-on-year rise of 16.4%, while the index of industrial production increased 34.5%. A total of 3,309 enterprises resumed operations, up 119.5%.

Production value in the agro-forestry-fisheries sector hit VND988 billion, up 2.2% against January 2020.

To maintain economic growth during February, the city will continue working on the twin targets of COVID-19 prevention and control and economic development.

It will actively implement the 13th National Party Congress’s Resolution and the 11th municipal Party Congress’s Resolution through specific programmes and plans.

It will also prepare sufficient goods and ensure food safety and hygiene for the upcoming Lunar New Year (Tet) holiday.


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