Central region misses foreign investment flow

Poor infrastructure and lack of inter-provincial cooperation slow foreign investment to central Vietnam, an official of the central investment promotion centre said Tuesday March 28.
Le Huu Quang Huy, the director of the centre, said the central and Central Highlands regions attracted 306 foreign-invested projects as this month-end with registered capital of US$2 billion.
The figures accounted for only 5% of the total projects and 3.7% of foreign investment capital in total, with the balance falling to other regions of the country.
Planning land for large-scale projects remains unorganised, with local authorities failing to satisfy foreign investor demands for projects over 100 hectares, said Huy.
Weak support industries and cargo transport issues increase business costs, cutting into profits, automatically causing investors to think twice about locating centrally.
Competition between provinces also had a negative impact on investors, leaving them insecure on where to locate and wondering whether they were really getting the best deal.
Central Da Nang city, Khanh Hoa, and Quang Nam provinces are leading localities in attracting highest investment projects, Huy said, adding that the majority remained small-sized projects incapable of tapping local potential.
According to Huy, the government?s role in orienting social and economic activities in the central and the Central Highlands should be enhanced to create a well though out urban chain.

 

Category: Legal