The FDI inflows make the great contributions to industry

​Manufacturing the electronic components at the Fujitsu Computer Products of Vietnam, Inc. in the Bien Hoa II Industrial Zone

Currently, Dong Nai Province is one of the four largest industrial centers of Vietnam. The industry makes the great contributions to the state budget revenue, exports, creating jobs for many employees inside and outside the province, and increasing the incomes for people in the area.

The FDI helps the economy accelerate

During the 1988 – 1993 period, Dong Nai Province welcomed the FDI investors. The first FDI project in Dong Nai Province was licensed on September 30, 1989 in the field of taxi transport services of the Vatadona Joint Venture Company. During this period, a number of the FDI corporations were licensed to invest such as the Vedan, Vmep, Hualon, but due to be still in the construction phase, the economic efficiency was not clear.  

From 1994 to 1998, the FDI inflows made a huge breakthrough in the growth of industry and other fields of the socio-economy with many big projects of the Fujitsu, Kao, Samsung, Kolon, Chrysler, CP, Cargill, etc. in the period that was considered as the first "wave of the FDI investment" into Vietnam. The year 1999 - 2000 was a period of decline due to the influence of the regional and world financial and monetary crisis. Therefore, the capacity of the new FDI projects in the province are mainly small and medium-sized.

In the period of 2001 - 2010 , the FDI capital that was registered to the province averaged US$900 million per year. The largest investment project in this period belonged to the Taiwan’s Formosa Group with investment capital of US$951 million, the Hyosung Vietnam Co., Ltd. with investment capital of more than US$563 million. From 2011 to now, it is considered as the second "wave of the FDI investment" in Dong Nai Province because the province focuses on attracting the supporting industries, high technologies, and environmentally friendly technologies. This period has attracted many large projects with the high technologies. By the beginning of September 2021, 42 countries and territories have invested in the province with the registered capital of more than US$32 billion.

Mr. Kang Myongil, Consul General of the Republic of Korea to Ho Chi Minh City said: “The Korean enterprises are leading the countries and territories investing in the province with the total registered capital of nearly US$7 billion and the majority of investments in the industry. After investing in the province, many Korean businesses have linked with the Vietnamese enterprises to provide the input products for each other in order to create a connection chain for mutual development.

For a green industry

Over the past three decades, the province's industrial production has been continuously expanded with a large contribution of the FDI inflows. For example, in 2016, the industry - construction sectors are more than 58%, in 2020, the increase will be nearly 62%. Dong Nai Province determined that in the next 5 - 10 years, it will still focus on the industrial development in order to become a province with modern industry and towards a green industry.

The Chairman of the Provincial People's Committee Cao Tien Dung commented: “The inflow of FDI into the province has contributed to promoting the Dong Nai's economy to grow stronger and stronger. Successful FDI enterprises investing in the province, continuously expanding production and business, have helped other FDI enterprises more confident to register for new investment in the province. According to Mr. Dung, the Dong Nai government has always committed to continue to create the favorable conditions for enterprises to deploy the project smoothly and come into operation soon. The province will make every effort to prevent and control the spread of the Covid-19 epidemic in order to keep the most stable production and business environment for the enterprise to maintain and restore their production.     

So far, in the province, there are 31 Industrial Zones in operation, which is expected to increase to nearly 40 Industrial Zones in the next 5 years. With many advantages of road, air, and waterway, in recent years, the FDI corporations have invested more and more in the province catch up with the Long Thanh International Airport, Dau Giay - Phan Thiet Expressway, Ben Luc - Long Thanh Expressway, Dau Giay - Lien Khuong Expressway, Cat Lai Bridge, Phuoc An Port, etc. The field that the FDI enterprises choose to invest a lot is the industry.

Mr. Watanabe Nobuhiro, Consul General of Japan to Ho Chi Minh City shared: “In recent years, the Japanese enterprises have continuously expanded their investment in the province in the industrial field and the projects are mostly successful. The majority of Japanese enterprises have the modern technologies, and when investing in the province, they often cooperate with the domestic enterprises with domestic investment capital to develop together.

The FDI inflows have made the Dong Nai's industry as one of the top provinces in Vietnam in terms of economic development, contributing to the state budget and creating jobs for more than 1 million employees inside and outside the province.

Vi Quan