Province attracts more foreign investment than domestic investment since the beginning of the year.
Southern Dong Nai province issued investment licenses to seven new foreign direct investment (FDI) projects in August, with total registered capital of $32 million. Two existing projects increased their capital by an additional $4.5 million in total during the month. In the first eight months 63 new projects were registered and 331 existing projects added capital, totaling nearly $1.5 billion and reaching 171 per cent of the plan for 2015.
The province has 1,389 investment projects in 32 industrial zones, of which 1,014 projects are foreign invested with more than $19 billion in capital. In the first eight months the industrial zones leased over 122 ha of land, more than 22 per cent higher than planned. Since the beginning of the year many enterprises have invested in Dong Nai or expanded their investment due to its good transport infrastructure and investment attraction policies.
Seven of 29 industrial projects leased land to build factories and develop production at the Bien Hoa Industrial Zone 2, Go Dau Industrial Zone, the first phase of the Nhon Trach 3 Industrial Zone, Nhon Trach Textile Industrial Zone, Bien Hoa 1 Industrial Zone, and Tam Phuoc Industrial Zone.
According to the Dong Nai Provincial Department of Planning and Investment, in the first seven months the province also revoked the licenses of four projects belonging to domestic enterprises, with capital of about VND2.736 trillion ($128.4 million). The province has therefore revoked the licenses of about 33 domestic projects to date, with registered capital of VND27 trillion ($1.26 billion). Reasons mostly relate to extended delays or a lack of capital and were all outside of industrial zones.
The province now has about 598 domestic projects with total capital of more than VND139 trillion ($6.5 billion). Since the beginning of the year domestic investment in the province has been much less than foreign investment.