Ho Chi Minh City should strive to improve its investment environment to compete with neighboring countries in attracting foreign direct investment, Deputy Prime Minister Hoang Trung Hai said.

The Secretary of the HCMC Party Committee, Le Thanh Hai (1st L), and other high-ranking officials receive the Labor Medal, First Class, from President Nguyen Minh Triet on June 27 for its success in attracting foreign investment (Photo: SGGP)

Speaking at a meeting on June 27 to review the city’s FDI performance in the last 20 years, he explained that as one of the country’s FDI spearheads, the city must streamline procedures for foreign-invested projects, speed up their progress, and improve their efficiency.

The meeting was attended by city Party Committee secretary Le Thanh Hai, People’s Committee chairman Le Hoang Quan, People’s Council chairwoman Pham Phuong Thao, and other officials.

The southern hub now has 3,128 foreign projects operating with a total registered capital of US$25.6 billion, the highest in the country, and a report released at the meeting said they are generally efficient and dovetail with the city’s economic structure.

The service sector attracted the biggest share of FDI, with 792 property projects valued at $7.2 billion and 952 others worth $11 billion.

“In recent years, FDI has trended to focus on such fields as education, training, healthcare and high technology, Nguyen Trung Tin, deputy chairman of the People’s Committee, said.

FDI projects have greatly contributed to the city’s socio-economic development by improving infrastructure, providing advanced technologies, creating jobs, and boosting exports, the director of the city’s Department of Planning and Investment, Thai Van Re, said.

Projects’ disbursement, progress urged to spur

But the slow pace of capital disbursement remains a problem for FDI projects, with just $10 billion actually brought in out of the total approved capital of $25.6 billion.

The city must identify the causes for this – like red tape -- and take measures to tackle them, Mr.Hai urged.

It must continue to strengthen administrative reform and speed up site clearance so that investors can go ahead with their projects on schedule, he said.

Foreign investors’ problems would be resolved, Phan Huu Thang, the head of the Ministry of Planning and Investment’s Foreign Investment Department, promised.

His department would coordinate with the city to smooth the way for FDI disbursement, he said.

The city authorities said they would seek foreign investment in technology.

They promised to complete zoning plans soon and provide investors information like land use coefficient and construction density.

The city would speed up development of some spearhead industries and restrict projects that may harm the environment, Mr.Quan said.

It would focus its efforts on completing some major works like the Thu Thiem New Urban Area, Northwest Urban Area, Can Gio Ecotourist Area, Hiep Phuoc Port, and metro routes.