|Sewing machines are manufactured at Juky Viet Nam in HCM City's Tan Thuan Processing and Exporting Zone. The country's accession to the Trans-Pacific Partnership is expected to draw foreign investment in manufacturing into the city and neighbouring provinces. — VNA/VNS Photo Danh Lam
HCM CITY (VNS) — Foreign investment in manufacturing has increased significantly in HCM City and the neighboring provinces of Dong Nai and Binh Duong as international firms seek to take advantage of the country's accession to the Trans-Pacific Partnership.
In the first quarter they have invested US$2.3 billion in 141 projects in the three places, accounting for 70 per cent of the total FDI they attracted. Binh Duong topped with nearly $800 million, and HCM City followed with $710 million.
In the last few months in Dong Nam Industrial Zone in HCM City's Cu Chi District, Worldon Viet Nam Limited built a 45ha garment factory that will go on stream in June next year.
The British Virgin Islands-based firm will invest $140 million in the plant that will produce 80 million products a year.
Samoa's Sheico Viet Nam company limited will open its $50 million plant in November with a capacity of 12,000 tonnes of fabric, 4.2 million garment items, and 1.2 million life jackets annually.
"The investment opportunities in textile and garment in Viet Nam are very promising since the country is going to join the Trans-Pacific Partnership (TPP)," a Sheico spokesperson said.
According to the HCM City Export Processing and Industrial Zone Authority (HEPZA), many firms are wrapping up procedures to increase investment to expand production.
German-owned Pepperl - Fuchs Viet Nam Limited company wants to increase its investment by $10 million and has sought an additional 9,000sq.m to expand production of high-tech sensors.
Initially the company had planned to expand its production in Singapore, but then chose Viet Nam thanks to cheaper land and human resources.
Many Japanese and Singaporean firms have invested in production of electronics components.
"We have invested $2 million and will consider investing more in the long term," Masaharu Tsukada, general director of Japan's Maruko Keihoki Viet Nam Limited company, which will produce car's horn in district 7's Tan Thuan processing zone, was quoted as saying in Tuoi Tre (Youth) newspaper.
"It is a good opportunity for investors in Viet Nam as the country is more and more globally integrated by signing more international agreements.
TranViet Ha, head of HEPZA's Investment Department, said: "This year FDI has flowed strongly into production, with many firms expanding their factories. The capability of local human resources to learn new technologies quickly is an advantage."
Luong Van Ly, an investment analyst, said: "Foreign investors have realised that Viet Nam's outdated technologies cannot benefit from the TPP agreement, and are pouring money into production in Viet Nam."
Investors from non-TPP countries were set to come to Viet Nam to take advantage of the agreement, he said. — VNS