There is a shift of FDI flows to central region: Insiders
Many provinces and cities as well as the central region of Vietnam have recently emerged as an attractive destination for foreign investors, according to experts.
Hanoi (VNA) – Many provinces and cities as well as the central region of Vietnam have recently emerged as an attractive destination for foreign investors, accordingto experts.
Doan Duy Hung, General Director of the Vietnam IndustrialReal Estate Portal, said that besides the prominent northern localities in attractingforeign direct investment (FDI) such as Bac Ninh, Bac Giangand Thai Nguyen provinces, the Red River Delta province of Thai Binh has become a bright spot in terms of FDIattraction.
He attributed the success to the fact that there has been a strongimprovement in Thai Binh's investment environment and the province locates near LachHuyen deep water seaport cluster in Hai Phong city. The construction of a coastalhighway connecting Hai Phong and Thai Binh is also a reason.
ꦡ Last year, Lien Ha Thai Industrial - Urban - Service Park inthe province attracted four projects with a total investment capital of over 440million USD, Hung said.
Other experts also believed that there is a shift of FDI investmentfrom two major centres around Hanoi and Ho Chi Minh City to the central region dueto the advantage of having many deep water ports and cheap rental prices which evenonly equal to one-third of that of the two cities, Tuoi Tre (Youth) newspaper reported.
According to Nguyen Van Toan, Vice Chairman of the Vietnam Associationof Foreign Invested Enterprises, there will be a reallocation of the industryin the near future.
Once the investment environment is improved and infrastructureis upgraded, it is expected to fuel FDI attraction into the central region, hesaid.
Toan noted that there was a movement of labour from majoreconomic centres such as HCM City, Binh Duong and Dong Nai provinces to centralprovinces during the COVID-19 pandemic. The fact that many workers have notreturned has resulted in a shift in the FDI trend to limit the risks of labourshortages, he said.
﷽ "The pandemic has reshaped the investment trend at home and abroad. Availablelabour resources will be an advantage for any locality to attract investment,"Hung was quoted by the newspaper as saying./.
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Illustrative image. (Photo: VNA) 
