VietNamNet Bridge – Singapore has become the biggest foreign investor in HCMC with 719 operational projects worth nearly US$8.22 billion, according to a report on foreign direct investment (FDI) in the city.

The updated report of the city’s government on FDI approvals last year showed that Singapore is followed by Malaysia, Britain, South Korea and Japan.

There are 5,310 valid FDI projects in the city with total registered capital of US$36.28 billion. Singapore has taken the lead with around US$8.22 billion, 22.66% of the total. Malaysia has 179 projects with some US$5.83 billion, Britain with 185 projects worth around US$3.7 billion, South Korea with 1,038 projects worth US$3.6 billion, and Japan with 740 projects worth US$3.26 billion.

The real estate sector has attracted the biggest amount of FDI, accounting for 35.36%, followed by manufacturing and processing with 32.74%, education with 10.27%, and wholesale, motorbike and automobile repair with 7.15% each.

The report said the city has attracted many large-scale projects but the number is still lower than potential. The investment environment and procedures have been improved, but foreign investors still encounter difficulties in site clearance, compensation and infrastructure development at industrial, hi-tech parks and some urban areas.

This year, HCMC plans 90 investment promotion events at a cost of nearly VND12.5 billion funded by the city’s budget this year, up VND500 million against the previous year.

SGT