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In the first 5 months of 2024, Ba Ria - Vung Tau leads the country in attracting FDI

According to data from the Foreign Investment Agency (Ministry of Planning and Investment), as of May 20, 2024, Ba Ria - Vung Tau leads the country in attracting FDI with a total registered investment capital of more than 1.52 billion USD, accounting for 13,8% of the country's total investment capital.

A series of "eagles" coming to "build a nest"

According to the explanation from the Foreign Investment Department, Ba Ria - Vung Tau's FDI capital has increased sharply in recent times due to the presence of a "huge" project with a total investment of 730 million USD from a multi-industry Hyosung corporation (Korea). This is the first factory in Asia and a rare one in the world to produce BDO biofiber from raw sugar using new and modern technology.

Besides Hyosung, recently the Thai Industrial Park Development Group (WHA) with plans to build smart ecological industrial parks, specifically projects with a scale of up to 1.200 hectares, has targeted Ba Ria - Vung Tau.

The province also attracted a number of projects with high investment capital such as the BOE Vision Electronic Vietnam produce intelligent terminal with a total capital more than 275 million USD and and Japanese Tosoh Corporation's $176-million chemical project in Phu My 3 Specialized Industrial Park.

In addition, Ba Ria - Vung Tau also continuously welcomes new capital flows from other famous FDI sources such as Heineken, Siam Cement Group, Marubeni, Vard, Austal, Tripod,…

Converging many advantage

Looking at reality, it is easy to see that the reason Ba Ria - Vung Tau surpasses familiar localities in the top FDI attraction such as Ho Chi Minh City, Dong Nai, Binh Duong... is due to factors such as the large number of projects, labor intensive and land fund makes these localities no longer have much room to attract investment like Ba Ria - Vung Tau.

This is also shown through the rental price of industrial park real estate, according to a report by SSI Securities Joint Stock Company, while the price of industrial park real estate in Ho Chi Minh City is up to 275 USD/m2/leasing term, Dong Nai is over 200 USD/m2/ leasing term, Binh Duong and Long An are close to about 190 USD/m2/ leasing term, Ba Ria - Vung Tau is only about 128 USD/m2/ leasing term.

Talking about the reasons for choosing Ba Ria - Vung Tau as an investment destination, Mr. Lee Sang-Woon, Vice President of Hyosung Group, assessed that this place is a maritime gateway, with an abundant and highly qualified labor force, good infrastructure and attractive incentive policies. 

According to Mr. Nobuyuki Matsumoto, Chief Representative of the Japan External Trade Organization (JETRO) in Ho Chi Minh City, Ba Ria - Vung Tau is one of the localities that JETRO advises businesses to invest in.

This person analyzed that Ba Ria - Vung Tau has many advantages such as: having Cai Mep - Thi Vai port rich in oil and gas resources and having an LNG receiving warehouse and stable electricity supply; there are 2 universities; located next to Dong Nai with Long Thanh International Airport (under construction) and Binh Duong where there are many manufacturing factories to ensure supply for the supply chain.

“Importantly, the Japan Single Window Department has been established under the Department of Planning and Investment of Ba Ria - Vung Tau province to provide extensive support and resolve issues related to Japanese businesses. I believe that this is the most important factor to attract investment to the province," Mr. Nobuyuki Matsumoto stated.

The Foreign Investment Department also commented that Ba Ria - Vung Tau strongly attracts FDI capital thanks to many advantages such as good infrastructure, stable human resources, efforts to reform administrative procedures and dynamism in investment Promotion.

Source: Baodautu