Workers assemble cars at Can Tho Automobile Factory in Tra Noc Industrial Zone
Mekong Delta city continues with efforts to attract foreign capital and improve its investment and business environments.
According to the Can Tho City Department of Planning and Investment the Mekong Delta city has attracted foreign direct investment (FDI) worth more than $900 million to date, representing a quarter of all investment, with seven FDI projects registered last year with total registered capital of $19.1 million.
In March it issued a license to South Korea’s Tae Kwang Vina Industrial to build a shoe production plant at the 2B Hung Phu Industrial Park. At more than $171 million, it will be its largest foreign project ever, Chairman of the City People’s Committee, Mr. Vo Thanh Thong, said.
Can Tho will be issuing licenses to other new FDI projects in the near future and will continue with its efforts to improve the investment environment to facilitate smooth business operations. Many investors from Japan, South Korea and elsewhere have come to explore the city’s investment environment and many have sought to invest, Mr. Thong said.
It has prioritized investment in electronics, garments and textiles, agricultural machinery and support industries, the production and processing of hi-tech agricultural and fisheries products, transport and tourism infrastructure, logistics, industrial parks, information technology zones, urban areas, hospitals, and international schools, he added.
Most investors are from Asia, including South Korea, Singapore, Hong Kong, Thailand, Japan and Taiwan, with western countries like the US, Germany and France not having a major presence.
Many projects are of small scale and use outdated technologies, and with little collaboration between large foreign firms and their domestic counterparts the level of technology transfer is low.
The city seeks to improve its investment promotion efforts to attract more quality foreign projects.