Central region

There is a shift in FDI flows to the central region: Insiders | Business

Illustrative image. (Photo: VNA)

Hanoi (VNA) – Many provinces and cities as well as the central region of Vietnam have recently become an attractive destination for foreign investors, according to experts.

Doan Duy Hung, general manager of the Vietnam Industrial Real Estate Portal, said that in addition to northern localities that attract foreign direct investment (FDI) such as Bac Ninh, Bac Giang and Thai Nguyen provinces, the province of the Red River Delta of Thai Binh has become a beacon of hope in terms of attracting IDE.

He attributed this success to the fact that there was a strong improvement in Thai Binh investment environment and the province lies near the Lach Huyen group of deep-water seaports in Hai Phong city. The construction of a coastal highway connecting Hai Phong and Thai Binh is also a reason.

Last year, Lien Ha Thai Industrial – Urban – Service Park in the province attracted four projects with a total investment capital of more than 440 million U.S. dollars, Hung said.

Other experts also felt that there was a shift in FDI investment from two major centers around Hanoi and Ho Chi Minh City to the central region due to the advantage of having many deep water ports and cheap rental prices that even match only a third of that of the two cities, the Tuoi Tre (Youth) newspaper reported.

According to Nguyen Van Toan, vice president of the Vietnam Association of Foreign-Invested Enterprises, there will be a realignment of the industry in the near future.

Once the investment environment is improved and the infrastructure upgraded, this should fuel IDE attraction in the central region, he said.

Toan noted that there was movement of labor from major economic centers such as Ho Chi Minh City, Binh Duong and Dong Nai provinces to central provinces during the COVID-19 pandemic. 19. The fact that many workers have not returned has led to a change in the trend of FDI to limit the risks of labor shortages, he said.

“The pandemic has reshaped the investment trend at home and abroad. The available manpower resources will be an advantage for any locality to attract investment,” Hung was quoted as saying by the newspaper./.