HCM City devises ways to attract foreign investment

03 Apr '06

2 min read

To create favorable conditions to invite foreign businesses, Ho Chi Minh City took several steps which ranged from administrative reforms to human resource development.

The southern region is going ahead with opening an industrial, financial and commercial hub on Thu Thiem peninsula as well as speeding up site-clearance process for other industrial and high-tech parks.

Enhancing of personnel training, focusing on business administration and senior management to meet foreign investors' demand are some of the measures undertaken.

Foreign businesses complained of lengthy procedures for land use rights, site clearance problems, difficulty in recruitment of labour, for both simple and technical jobs.

Director of the municipal Service for Planning and Investment Thai Van Re said the city is to invest in building 30,000 homes for low income residents.

Improve workers' living conditions, a major cause to most of the labour strikes that have had negative impacts on foreign investors' production, he said.

City's trade, tourism and industrial services will increase trade promotion activities and call on US and Japanese companies to invest in major projects.

European Commission's imposition of temporary anti-dumping duties on Viet Nam's leather shoe products has prompted the city to help EC understand the market mechanism under which Vietnamese footwear businesses operate and produces products mainly for foreign business groups.

The city plans to seek new outlets for their products, and shift a number of businesses to producing other items.

HCM City was able to attract $700 million in foreign investment in first two months of the year, which signals attracting $1.3 billion this year.

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