Quang Nam (VNA) – The inflow of foreign direct investment (FDI) intothe central province of Quang Nam has boosted the local socio-economicdevelopment during the process of industrialisation and modernisation.

When the province was re-established in 1997, it only attracted 13 FDI projectswhich registered a total capital of nearly 230 million USD. However, after morethan 20 years, the province secured 5.78 billion USD in 166 projects.

Among 26 countries and territories investing in Quang Nam, the Republic ofKorea leads with 41 projects valued at 274.5 million USD. China is the secondlargest investor with 35 projects, and Japan third with 14 projects.

FDI capital has helped accelerated economic structure shifting toindustry-construction and services. Local manufacturing-processing industrieslured 95 projects with registered capital of 948 million USD, accounting for 17percent of the total foreign direct capital. Meanwhile, foreigners poured some4.5 billion USD, or 81 percent of the total FDI, into 45 tourism-serviceprojects.

By the end of 2017, FDI enterprises had disbursed some 5.2 trillion VND (221.25million USD), 104 times more than in 1997, accounting for 21.62 percent of thetotal investment in the province. The FDI sector’s contribution to grossregional domestic product (GRDP) increased from 1.64 percent in 1997 to 10.7percent 10 years later.

FDI companies’ State budget contribution has increased substantially over theyears, with 977.8 billion VND (41.6 million USD) recorded in 2017 compared toonly 6.6 billion VND (280,800 USD) in 1997. It has also help advancetechnology, form new products and create jobs.

In addition, the foreign-invested sector has helped Quang Nam integrate deeperinto the global economy by enhancing the transfer of state-of-the-arttechnologies, helping improve industries like automobile production, high-techproducts and engineering.

One notable project is Thaco Mazda automobile manufacturing plant, the biggestand most modern Mazda factory in Southeast Asia. Invested in by Truong Hai AutoJSC and Japan’s Mazda group, the plant covers 30.3 hectares in Chu Lai OpenEconomic Zone and is equipped with cutting-edge technology.

The massive influx of investment projects requires local authorities to improvethe business climate, including planning, infrastructure and simplification ofadministrative procedures, among others.

The province has already formed Chu Lai Open Economic Zone, Nam Giang BorderGate Economic Zone and various industrial parks. It has also improved transportinfrastructure, like building Da Nang-Quang Ngai highway, upgrading Chu Laiairport and opening Japan-Chu Lai international maritime route.

Furthermore, Quang Nam’s Provincial Competitiveness Index (PCI) has been in top10 of the country, showing local authorities’ efforts to enhance the businessenvironment.-VNA