Foreign and local investment in of Ba Ria-Vung Tau has soared rapidly in the past five years, making the southern province become one of the country’s localities drawing the largest inflow of foreign capital.
According to the Ba Ria-Vung Tau Planning and Investment Department, the province licensed additional 196 wholly foreign-invested projects in 2006-2010, with a combined registered capital of nearly US$24.3 billion, bringing the total number of projects in the province to 280 and the registered capital to US$27 billion.
The newly-licensed projects and the registered capital increased two and ten times respectively compared to targets set by the provincial Party Committee.
In addition, disbursement of foreign direct investment (FDI) reached $3.39 billion, exceeding $650 million compared to the target, and up 1.5 times from 2001-2005.
FDI projects contributed 60 percent of the province’s total investment capital, 50 percent of total export turnover, 20-30 percent of the provincial budget, and created 20,000 jobs.
While tourism projects attracted foreign investors, local investors were interested in seaport, urban area and industrial infrastructure projects, such as Long Son Oil and Gas Industrial Park, An Phu Shipbuilding Factory, Chau Duc Urban Area, and Nui Lon-Nui Nho Tourist Complex.
Tan Thanh District topped the list of localities attracting investment, with VND86.4 trillion ($4.5 billion) in 127 projects, accounting for 63.5 percent of the province’s total investment capital. Vung Tau City was second, with VND24 trillion ($1.26 billion) in 76 projects.
The province obtained many great achievements in the past five years, with development of many huge projects, investment in technology and management, and increases in investments, jobs and production capacity.
Recipe for success
Vietnam’s World Trade Organization membership partly helped to boost foreign investment in Ba Ria-Vung Tau as investments poured in the province in 2008 reached a record high of $11.6 billion, while it was $1.4 billion 2007.
According to investors, the province’s authorities have been very determined to adopt measures to attract investment, and create favorable conditions for investors.
Le Ngoc Quynh, managing director of Ho Tram Beach Tourist Area, said her company chose Vung Tau because it has a long beach, white sand and blue sea.
In addition, she said, administrations of all levels from commune, where the tourist area is located, to district and province supported the company very much, in terms of power and telephone systems.
Le Kim Huong, director of the Planning and Investment Department, said the province’s policy is encouraging enterprises to discuss their difficulties with the province and cooperate with the province to solve the difficulties, and creating favorable conditions for investors.
