The southeast region is held in high regard by foreign investors thanks to its geographic location, natural conditions, and abundant human resources. In recent years, localities in the region have made significant efforts to enhance administrative reform, improve the business and investment environment, and focus on developing a skilled workforce to meet the needs of businesses, so as to attract a new wave of investment.
Magnet for Foreign Direct Investment
According to assessments by relevant authorities, the region’s recent successes in attracting Foreign Direct Investment (FDI) reflect the effectiveness of local administrations’ efforts to improve the investment and business environment toward creating more values for foreign investors. This is seen as a “key” to achieving long-term development goals in a fundamental and sustainable manner.
Leading the southeast region is the development
axis of Dong Nai, Binh Duong, and Ba Ria-Vung Tau. The strengths for regional economic development, as well as the diversification of investment supply, are concentrated in these provinces. These are the factors that strongly attract foreign investment.
Dr. Pham Dinh Dzu, Ho Chi Minh City University
of Technology
Ba Ria-Vung Tau is making significant efforts to lead the region in luring FDI. To date, the province has attracted 476 foreign-invested projects with a total capital of 33.2 billion USD. In the first seven months of 2024, it drew over 1.7 billion USD in new and additional foreign investments, achieving 87% of the 2024 target.
The Southern Petrochemical Complex in Long Son commune, Vung Tau city is invested by Long Son Petrochemical Company (Thailand) and has an investment capital of over 5 billion USD, making it a significant FDI project. (Photo: VNA)
Nguyen Huu Nguyen, Director of the Department of Planning and Investment of Dong Nai province, said that with a breakthrough mindset and effectively leveraging its potential and advantages, Dong Nai attracted over 1 billion USD in foreign investment in the past eight months, a 34% rise compared to the same period last year. To date, more than 46 countries and territories have poured capital into the province, with 1,667 active projects and total investment exceeding 34 billion USD.
Similarly, Binh Duong has also achieved positive results in attracting investment, particularly foreign investment. In the first eight months of 2024, it ranked seventh nationwide in attracting FDI, with a total registered capital of 911 million USD. Cumulatively, Binh Duong is ranked
third, behind Ho Chi Minh City and Hanoi, with 4,354 active projects totalling over 40.9 billion USD.
Pham Trong Nhan, Director of the provincial
Department of Planning and Investment (Photo: tuchinhsachracuocsong.vn)
Other provinces such as Tay Ninh and Binh Phuoc are also making significant effort to attract FDI into their industrial and agricultural sectors.
In 2023, Binh Phuoc attracts 61 projects with a total investment of 830 million USD and 6.5 trillion VND (264.2 million USD), including 45 FDI projects amounting to 830 million USD, 5.3 times higher than that in 2022. This marks the first time Binh Phuoc has made it into the top 10 localities attracting the largest FDI in the country. (Photo: VNA)
Dzu said that the region is currently the country’s biggest FDI receiver, accounting for 41.1% of the total. The influx of FDI primarily into the industrial sector has helped the region become a major industrial and export hub in Vietnam.
Innovating to attract investors
The localities within the Southeastern Key Economic Region are continuously innovating themselves and creating unique attractions to draw more, higher-quality, and more effective foreign investment.
According to the Ba Ria-Vung Tau Department of Planning and Investment, the province’s advantage lies in its industrial zones being located near deep-water ports, which is highly favourable for import and export activities.
Foreign investors not only bring with them investment resources and advanced exploitation and management technologies but also enhance the connectivity of the Ba Ria – Vung Tau port system with the global port network. (Photo: VNA)
With a selective investment strategy focused on project quality, Ba Ria-Vung Tau has shifted its attention to supporting industries and high-tech industries, with a series of criteria to ensure environmental protection, energy efficiency, and reduced labour intensity.
Unlike Ba Ria-Vung Tau, which attracts investors with its deep-water port system, Dong Nai draws investors with its aviation industry.
Dong Nai uses Long Thanh International Airport as a nucleus to drive economic development across various sectors, including transportation infrastructure, industry, services, and logistics. The urban system is developing in a modern, smart and sustainable manner.
Nguyen Huu Nguyen, Director of the Dong Nai
Department of Planning and Investment (Photo: baodongnai.com.vn)
Mentioning Binh Duong, both domestic and foreign investors recognise it as a dynamic province that consistently creates a vibrant and attractive investment environment. It is known for its industrialisation and modernisation, with outstanding development in infrastructure.
“To gain impressive results in investment attraction, Binh Duong has made the most of its competitiveness advantages in terms of geological position and nature. In addition, the province has stepped up administrative reform, improved its investment environment, and focused on developing human resources that meet development requirements.”’
Director of the Binh Duong Department of Planning and Investment Pham Trong Nhan
According to Dzu, to attract new waves of investment, southeastern localities need to adjust their training structure by reducing the emphasis on basic scientific research subjects and increasing the focus on applied sciences. This shift aims to provide a skilled workforce for new high-tech investors and boost the number of startups in high-tech development./.
The Southeast key economic region has an important strategic location, and favourable natural conditions, especially the increasingly complete transport infrastructure system. In the photo: Japanese-invested Sojitz Osaka Gas Energy Co., Ltd. at Phu My 3 Specialised Industrial Park, Phu My town, Ba Ria – Vung Tau province. (Photo: VNA)