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  • News
  • News in Vietnam
  • 24 January 2022

Attracting FDI into the Mekong Delta promises to prosperity

As a delta rich in potential for agricultural production, renewable energy development, and labor in the golden population period, the Mekong Delta has many advantages in attracting investment, mainly is to attract FDI inflows in the coming time.

The right time to invest

Previously, investors had to spend plenty of time moving from Ho Chi Minh City to the West, however the transportation is way more convenient now; crossing the river on a ferry has not been the only choice. In Can Tho, there is also an international airport of level 4E standard, ready to connect with worldwide airports.

During the Lunar New Year, the expressway from Ho Chi Minh City to the western provinces has been opened to My Thuan bridge and in 1-2 years later this highway will reach Can Tho, then the travel between these two big cities is no longer a “bottleneck” that the media has addressed for more than a decade. Traffic is gradually invested for smooth inter-regional connectivity, and connecting the region with provinces and cities across the country which will be a “prerequisite” to attract investment into the Mekong Delta.

Mr. Noboru Kondo – Chairman of Brain Works Corporation (Japan) shared that although his Group has invested in Vietnam for a long time, he has only known about Can Tho for about five years now through a friend born in the West.

“For Japanese investors, a few years ago, hardly anyone knew about the provinces in the Mekong Delta. Usually, they were just around Ho Chi Minh City, the eastern provinces, further to Long An, Tien Giang provinces. The reason is that information about the Mekong Delta is too little and the roads are difficult to travel, so very few foreign enterprises want to invest in this area. However, the situation has changed in which regional transport infrastructure has been gradually improved, so this is the best time to invest in this area,” said  by Mr. Noboru Kondo.

In addition to upgraded and expanded transport infrastructure, localities in the Mekong Delta have also planned and invited for investment in the infrastructure of dozens of large-scale industrial zones (IZs) for investors to rent to build manufacturing plants. Typically, Hau Giang province has completely planned dozens of industrial zones with  ​​up to thousands of hectares. City. Can Tho is calling for investment in the infrastructure of 2 industrial zones with an area of ​​up to 1,400ha and Vinh Long province is investing in the infrastructure of Dong Binh Industrial Park with a scale of 400ha, etc.

According to the Ministry of Transport plan approved by the Prime Minister, in the period from now to 2030, the Mekong Delta region will invest hundreds of thousands of billion VND to build important traffic projects such as Chau Doc. – Can Tho – Soc Trang expressway, Can Tho – Ca Mau expressway, Can Tho 2 bridge, Center for agricultural product processing, logistics. These are the prerequisites for this region to strongly “attract” investment capital, especially FDI capital..

 Breakthrough from energy projects

According to the Foreign Investment Agency – Ministry of Planning and Investment, in 2021, the whole Mekong Delta region has attracted 252 new investment FDI projects, increased capital, contributed capital to buy shares with a total registered capital of more than 5.642 billion USD. Accumulated by the end of 2021, the Mekong Delta has 1,839 valid FDI projects with a total registered capital of over 30 billion USD, accounting for about 7.5% of the total registered FDI capital nationwide.

In 2021, the Mekong Delta region had two localities in the top 5 leading FDI attracting localities. Notably, the projects that bring these two localities to the top of attracting FDI are energy projects.

Specifically, it is the Long An LNG Power Plant Project I and II (Singapore), with a total registered capital of over 3.1 billion USD with the goal of electricity transmission, distribution, and electricity production in Long An. O Mon II Thermal Power Plant Project (Japan), with a total registered capital of over 1.31 billion USD to build a thermal power plant to meet the electricity supply demand for the regional power grid and national electricity system in Can Tho.

The first new feature in attracting FDI in the Mekong Delta in 2021 is the wave of FDI spillover from Ho Chi Minh City started “landing” in the western provinces and cities such as Can Tho, Hau Giang, Dong Thap, Vinh Long, Ca Mau…

The second new feature in attracting FDI in the Mekong Delta region is that instead of investment focusing on the processing industry, now capital is flowing strongly into the energy sector.

According to Mr. Nguyen Phuong Lam, Director of the Vietnam Chamber of Commerce and Industry, Can Tho Branch, there are eight reasons that investors should invest in the Mekong Delta. It is a favorable business and investment environment, has a rich material area, an abundant and low-cost labor force, a beautiful local consumption market, and huge amount of pure land for investors with low rent. It also has room for many new investment fields such as hi-tech agriculture, ICT, logistics, wind power, solar power, tourism real estate, and high-tech engineering construction to cope with climate change.

The Mekong Delta is a “good land” ready to welcome investors in 2022 and the following years with abundant and diverse potential and factors of converging natural, geographical, and human resources.


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