According to the Department of Planning and Investment (DPI), by the end October 22nd, Dong Nai has attracted FDI capital of nearly 1,6 billion USD, exceeded by 60% of 2018’s target. Specifically, from the beginning of this year, there have been 101 newly approved FDI projects, having a total capital of 804 million USD. At the same time, 87 projects have received additional capital, making the total increase by 790 million USD. Notably, multiple projects have received significant additional amounts of capital. For instance: Bosch Gasoline Systems Project – HPC (Dutch investor, in Long Thanh industrial zone with 72 million USD); Kenda Rubber Company Manufacture Factory (Japanese investor, in Giang Dien industrial zone with a capital increment of 56 million USD); OPV Pharmaceuticals Joint Stock Company (Singaporean investor, in Bien Hoa 2 industrial zone with more than 48 million USD of increased capital) …
In addition to the continuously increasing capital, another worth notifying “highlight” is the high rate of capital being disbursed.
After nearly 10 years of operation in Dong Nai, in 2017, New Vietnam Co., Ltd (Japanese investment, specialized in engine, trailer, semi-trailer, headquarters in Amata industrial zone, Bien Hoa city) have registered to increase 107 million USD worth of capital, aiming to expand production, business. Less than a year, this enterprise has disbursed 48 million USD, completing more than 50% of the additional registered capital.
According to New Vietnam Ltd., Co, the reason for the increased capital is that the production and business process in Dong Nai has been favorable. Additionally, business environment is increasingly becoming more open, especially when the province has various preferential policies for enterprises working in supported fields. Therefore, in addition to registering for supplementary capital, enterprises also accelerate investment disbursement to import machinery, quickly putting new lines into production.
Meanwhile, Hwaseung Vina Ltd., Co. (Korean investment, specialized in footwear production in Nhon Trach 1 industrial zone, Nhon Trach district) continues to hold its position as one of the largest foreign investors in Dong Nai. Up to now, Hwaseung Vina Ltd., Co. is the enterprise with the largest disbursed capital in the province with 85 million USD disbursed in the total of 170 million USD registered for increasement. Deputy Head of Dong Nai Industrial Zones Authority (DIZA), Mai Van Nhon said that the high figure of disbursed capital is also a highlight in provincial FDI attraction in October 2018, aside from the total investment capital that Dong Nai has attracted. According to Mr. Nhon, since the beginning of this year, Dong Nai has attracted nearly 1,6 billion USD worth of FDI capital whereas by the end of September, there was 1,2 million USD, accounting for 80% of the total capital disbursed by enterprises. “This rate is equivalent to the previous years and continues at the higher level of the company”, Mr. Nhon said.
FDI capital is being used in actual production
According to Mr. Mai Van Nhon, the high rates of disbursed FDI capital shows that Dong Nai’s investors are real with actual production. Therefore, most of the time project implementation, capital disbursement is proceeded quickly to go into production.
This is reflected in the fact that most of new investment projects with large capital in the province only take for 2 years to go from registration to operation. “These projects need around half a year to complete the procedures and 1.5 year to establish factory, machinery for operation. Consequently, only after around 2 years, they have disbursed 70 – 80% of registered capital”, Mr. Nhon said.
Additionally, as the Laws on Investment and Enterprise Law have been gradually coming to life, appropriate agencies have the legal condition and basis to accelerate quick disbursed project and withdraw slow deployed project. Concurrently, provincial authorities can have options in attracting FDI.
According to statistics, from 2014 up to now, the rate of disbursed FDI is always high. This has contributed to bringing the FDI disbursement rate of Dong Nai to the top the country. “Currently Dong Nai has attract more than 23 billion USD, of which 18 billion USD has been disbursed, approximately 80%. This is a very high rate when comparing to other provinces, cities throughout the company”, said Mr. Nhon.
In addition, the open and healthy investing environment of Dong Nai also creates favorable conditions, incentives for investors to disburse FDI for production and business without hesitation. Many investors, after the beginning period of production, business activities in Dong Nai have quickly continued to increase capital and disburse in order to expand production and business. “Through monitoring, we see that investors who raise capital always disburse quickly and correctly to the registered capital increase”, Mr. Nhon emphasized.