Many Provinces Get into Difficulty to Attract Foreign Capital because of Weak Logistics

Many Provinces Get into Difficulty to Attract Foreign Capital because of Weak Logistics

Dong Thap is a province with the highest Provincial Competitiveness Index (PCI) in the country but faces difficulty to attract investors, especially foreign invested enterprises. This limitation attributes to weak logistics and also is the fact of the other provinces.

Investment in Vietnam - According to the latest information from the Foreign Investment Agency (Ministry of Planning and Investment), in 11 months of 2017, the total capital newly registered, increased and contributed capital to buy shares of foreign investors are US$ 33.09 billion, up 53.4% over the same period in 2016.

Although foreign investors have been present in all 63 provinces and cities in the country, but most popular provinces and cities attracting foreign capital are familiar names such as Ho Chi Minh City, Binh Duong, Hanoi.

Mr. Nguyen Thanh Hung, Vice Chairman of Dong Thap People's Committee acknowledged that the transport infrastructure of the province is limited so the attraction of businesses is very modest.

In addition, Dong Thap is an agricultural province while investing in agriculture is more risky than other sectors. It is more difficult especially investors always seek the most effective locations for them.

According to the experts, the technical infrastructure has not developed synchronously, of which logistics is considered the biggest obstacle for the Mekong Delta (Mekong Delta).

The fact is that transportation infrastructure in the Mekong Delta has improved but in slow pace and lack of synchronism. Mr. Le Thanh, Director of Institute of Organic Agriculture Economics, emphasized that we want Vietnamese vegetables and fruits to be present in the world market, but there is a big barrier to logistics.

According to experts, agriculture is the strength of the provinces in the Mekong Delta but they have not taken best use of the advantages to attract FDI.

Therefore, contribution of agricultural products to the world is only about 2%, very modest compared to potential.

If agricultural provinces want to attract foreign capital, it is also necessary to have policies that are breakthrough and preferential to be able to catch new investors’ interest.


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