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Mekong Delta well positioned to receive FDI inflows

The Mekong Delta region, located on the maritime route in the centre of the ASEAN region, has great potential to draw strong investment waves from countries, especially neighbouring nations.

To tap the opportunities ahead, regional localities have designed various policies and measures to support foreign investors in developing stably and sustainably, including creating a smooth environment for them. The efforts are expected to turn the region into an attractive destination for investors.

Great potential for investment attraction

According to the Ministry of Planning and Investment (MPI), in the 2021-2025 period, the region expects to be allocated 320 trillion VND (about 13.65 billion USD) of State capital for infrastructure projects, up 23.3% over the 2016-2020 period.

Meanwhile, it will also get about 140 trillion USD of State funding through ministries for other projects across the region.

Minister of Planning and Investment Nguyen Chi Dung said that the capital will be poured into infrastructure development projects, especially routes connecting the region with Ho Chi Minh City and the Southeastern region through roads, waterways and railways.

At the same time, a coastal route linking Tien Giang and Kien Giang provinces will be developed in association with salt water intrusion prevention and security-defence protection, forming an open economic corridor towards the sea.

In the first six months of this year, the construction of 188-km Chau Doc – Can Tho – Soc Trang expressway, part of the North-South Expressway that crosses four localities of An Giang, Can Tho, Hau Giang and Soc Trang was launched, while Ha Tien-Rach Gia expressway with a length of nearly 100km was also proposed by Kien Giang.

Long An province, located in the gateway to the Mekong Delta region, ranks third among localities across the country in the process of developing industrial parks after Dong Nai and Binh Duong provinces. In terms of FDI attraction, Long An ranks 13th in the country and third in the southern key economic region after Ba Ria - Vung Tau and Ho Chi Minh City. It always leads the provinces and cities in the Delta region in the field. To date, the province has attracted 167 projects outside industrial parks, including 16 foreign-invested projects with a total registered capital of 4.5 billion USD.

Meanwhile in Can Tho city, the Vietnam-Singapore Industrial Park (VSIP) has been one of the major projects developed towards green, smart, modern and sustainable manufacturing. The project has created a large number of jobs and paid a great amount to the local budget collection, contributing to the city's modernisation and industrialisation.

Creating smooth investment environment

Over the years, Long An has been highly evaluated by investors for its support in exploring the local investment environment and implementing their projects. Investment projects meeting the province’s requirements and priorities have received investment licensing within one day.

Chairman of the People’s Committee of Long An province Nguyen Van Ut said that this year, the province will upgrade its investment promotion capacity to lure more big investors and multinational groups, while fostering coordination among authorised agencies in processing the procedures to issue investment licences with the motto of accompanying businesses.

At the same time, Can Tho, the capital of the Mekong Delta region, is focusing on assisting local firms to expand production and business operations, and introducing its potential to domestic and foreign investors through different channels.

Chairman of the Can Tho People’s Committee Tran Viet Truong said that Can Tho will provide optimal conditions for businesses, while creating a smooth business climate and turning itself into a trustworthy and attractive address for foreign investors. The local administration commits to accompanying businesses and investors to explore opportunities and implement their projects in the city, he pledged.

In Vinh Long province, a plan for investment promotion for 2023 was issued with an aim to put fourth investment and socioeconomic development programmes in the locality. It has also called for investment in its prioritised sectors such as digital economy, biotechnology, high-tech agriculture, environment, clean energy and technical infrastructure development.

Vice Chairman of the Vinh Long People’s Committee Nguyen Van Liet said that along with implementing major projects, Vinh Long will also organise investment promotion programmes and exchange information with foreign organisations, agencies and associations to introduce the province's potential to foreign investors. At the same time, Vinh Long will also join investment promotion events inside and outside the country with the same purpose, he said.

According to the Foreign Investment Agency under the Ministry of Planning and Investment, as of the end of January 2023, the Mekong Delta region, comprising 13 cities and provinces had hosted 1,884 FDI valid projects worth over 35 billion USD./.