New resolution hoped to pave way for HCMC’s further growth

The Resolution 98 of the National Assembly introducing a range of mechanisms and policies for Ho Chi Minh City's growth is hoped to pave the way for the southern metropolis’ further development.
Samsung factory in HCMC

Samsung factory in HCMC

The Resolution 98’s Article 7 specifically includes priority fields to attract strategic investors to Ho Chi Minh City. From the beginning of 2023 to now, foreign investment capital in the city is US$2.8 billion, up more than 30 percent over the same period in 2022.

Director of External Relations of Intel Corporation cum Head of the Business Association of the High-Tech Park in HCMC Ho Thi Thu Uyen said that as soon as the Resolution 98 was implemented, more bottlenecks related to administrative procedures and enterprises’ investment activities such as construction activities, fire prevention and fighting, re-investment in road infrastructure, electricity, health care have been removed.

More importantly, electronic public administration services are applied to the fullest extent to help administrative procedures and licensing be digitized; thus, businesses are clear about handling schedules to follow.

With the new preferential policy, the attraction of foreign investment in Ho Chi Minh City will prosper. Ms. Ho Thi Thu Uyen said that Intel Corporation has completed the application procedure to deploy the investment in phase 2 of the Intel factory in the Ho Chi Minh City Hi-Tech Park. Accordingly, the group will pour an additional US$475 million, bringing the total investment here to nearly $1.5 billion after 13 years of operation in the Southeast Asian country to improve the operational efficiency of the 13th generation Raptor Lake processor factory and next generation Meteor Lake processors.

Up to this point, the factory in Vietnam is manufacturing and accounts for more than 50 percent of Intel's global output for assembly and inspection. General Director of Samil Pharmaceutical Company Kim Hui Chang revealed that the company has invested $92.5 million to build a pharmaceutical factory. Necessary machinery and equipment have been installed and the factory is applying for a GMP certificate to be put into operation.

Meanwhile, Chairman of the Korean Business Association (Kocham) Choi Bundo said scores of large Korean corporations in many fields from retail, textile, food processing, and electrical and electronic product manufacturing have been operated in Vietnam. These are Samsung Electronics HCMC CE Complex Company, Suheung Vietnam Company, CJ Cau Tre Food Joint Stock Company, and CJ Foods Vietnam Company. The size of Korean enterprises is constantly increasing.

This has proven that Vietnam is not only a potential market with a scale of 100 million people but also a favorable and stable investment environment. Up to now, Korea has had 2,135 projects, with a total investment capital of more than $5.5 billion, accounting for 9.64 percent of the total foreign investment capital in Ho Chi Minh City. In the coming time, many Korean businesses will invest heavily in digital culture technology, e-commerce, automation products, and food processing.

According to the Statistics Office of Ho Chi Minh City, foreign investment attraction has been very good from the beginning of 2023 to now. Not only investment capital has increased but also the country has 514 new projects, an increase of 69.1 percent against the same period. Moreover, foreign investors poured more capital into 163 projects, up 139.7 percent. In addition, up to 1,089 foreign investors made a capital contribution of $2.2 billion, up 3.6 times over the same period last year.

Deputy Director of the Department of Science and Technology Dao Minh Chanh said that in the field of investment attraction, Ho Chi Minh City prioritizes high technology, semiconductor microchips, new energy, biotechnology, renewable energy and the environment, and digital technology. The city takes heed of applying technology to participate in the fourth industrial revolution. Currently, the city has publicized details of 197 projects in traffic, transportation, commerce, services, health care, and tourism sectors to call for businesses’ participation in construction.

For best support investment activities, while chairing a recent meeting to discuss solutions to promote trade and investment promotion activities, Chairman of Ho Chi Minh City People's Committee Phan Van Mai directed the Investment and Trade Promotion Center of Ho Chi Minh City (ITPC) to be responsible for all trade and investment promotion activities for supporting investors with new investments to avoid transfer of documents through many administrative agencies.

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