Capital flow in HCM City-based industrial and processing zones drops sharply

25-Jun-2012 Intellasia | Dau Tu page 2 | 11:19 AM

HCM City Export Processing and Industrial Zone Authority (Hepza) has lately announced that up to June 10, 2012, the total registered capital for pouring in the city’s industrial and processing zones reached $202.29 million, a year-on-year drop of 38.35%, of which the foreign direct investment (FDI) capital accounted for $78.84 million, down 59.45 percent against the same period of 2011.

There were eight FDI projects being granted investment licences this time, with total investment value of $23.03 million, surging by 21.72 percent against H1 of 2011. The investment capital of domestic investors was estimated at $126.45 million, down 10.39 percent year-on-year.

The main reason behind this trend is global economic recession and difficulty in domestic economy.