April, 16 2014 09:14:27

Foreign investors eye manufacturing

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

Send Us Your Comments:
Your E-mail address:

VietNamNews may edit your comments and not all emails will be published.


Mountains of coal sludge still threat to lives in Quang Ninh Mountains of coal sludge still threat to lives in Quang Ninh

Wiping sweat from his forehead, 36-year-old Trinh Duc Sang took big strides along a road covered with muddy coal sludge and dirt to the place that was his home until just three weeks ago. He climbed a rickety ladder that buckled under his weight to reach his neigh-bour's house overlooking a creek. From there, he crossed into his old home.

Doctors treat patients for free at clinic in Ha Noi Doctors treat patients for free at clinic in Ha Noi

For more than 20 years, Dang Thi Nhan, 67, has been waking up about 30 minutes earlier each day to bake cakes or prepare tea for two retired doctors in a clinic near her house in Ha Noi's Giap Bat Ward.

Wounds begin to heal between US, Viet Nam 1    Wounds begin to heal between US, Viet Nam

Pham Ba Lu swore thousands of times that he "would not live under the same sky as the United States".

Water resources, eroding land need saving Water resources, eroding land need saving

Water management has become a major topic of discussion in recent years among Viet Nam's lawmakers, experts and society. The country has been struggling to deal with water-related issues such as a rising sea level, land subsidence and saline intrusion in the Mekong Delta. Lawmakers and experts shared their views on water management with Viet Nam News reporters Thu Van and Hoang Anh.