The Covid-19 pandemic has been greatly affecting many fields, including the attraction of foreign direct investment (FDI).
At the beginning of the year, LMS Vina Co., Ltd. in the expanded Dai An industrial zone added more than VND488 billion to manufacture shaped aluminum
However, the total FDI added to expand enterprises' production in industrial zones (IZ) in the past seven months was positive, becoming a highlight in investment attraction of the province.
Many projects get more capital
Although the attraction of new FDI projects to the province in the first months of this year was quite gloomy, the owners of a series of FDI projects in IZs have still registered to increase capital and expand production.
Investment raising at this time is part of previous production and business plans, helping businesses maintain stable activities and improve production capacity.
LMS Vina Co., Ltd., a wholly South Korean-invested company, has operated in the expanded Dai An IZ for nearly three years. Its project to manufacture shaped aluminum was granted an investment registration certificate by the provincial IZs Authority for the first time in October 2017 with over VND413.3 billion in investment.
In early 2019, the firm registered to add nearly VND932 billion to expand production.
Amid complicated developments of the Covid-19 pandemic, while many enterprises waited for news or even shrank production, the company decided to increase investment by more than VND488 billion in late March, 2020. To date, the project has had a total investment of over VND1,800 billion.
"The addition of investment in 2020 is part of our company's production and business plan and strategy. Our company's leaders chose capital increase in the context of an unpredictable Covid-19 pandemic to add energy and motivation for our company to maintain stable production and ensure the jobs of nearly 700 laborers so that they could keep their mind on their work," said Trinh Thi Thu, Head of the Department of Administration and Human Resources of LMS Vina Co., Ltd.
Upon completion of procedures to build the first factory in Cam Dien – Luong Dien IZ in Cam Giang district with an investment of over USD40 million, Leo Paper Products (Vietnam) Ltd., a fully Hong Kong-invested company, hired workshops in An Phat hi-tech IZ in Hai Duong city to expand production.
In early 2020, the unit increased its investment by more than USD18 million for production expansion. At present, its project scale is 60.5 – 200 million products/ year.
Since the beginning of the year, the provincial IZs Authority has granted new investment registration certificates to six FDI projects with a total registered investment of USD39.5 million, and 21 turns of FDI projects have got an additional investment of more than USD150.5 million.
Though the number and total registered capital of newly-licensed FDI projects in the first seven months of this year were only equal to 25% of projects and 20% of the total capital in the same period last year, the number of projects and the total added capital almost doubled, nearly reaching the plan for the whole year 2020.
As assessed by the provincial IZs Authority, the Covid-19 pandemic has greatly affected production and business activities of enterprises, leading to short-term reduction of investment and influencing long-term investment, especially in the FDI sector.
Companies' investment and business encountered a lot of difficulties because of declines in export and consumption markets, and many investors had to limit investment expansion or starting of new investment.
Enterprises also faced difficulties in the supply of raw and ancillary materials, input components, and finance. FDI businesses' increase of investment over the past time is really good news.
"In the difficult context due to the impact of the Covid-19 pandemic, FDI addition in IZs is a highlight in investment attraction in the province. This result also shows FDI businesses' trust in the investment and business environment in Hai Duong," said Deputy Head of the provincial IZs Authority Nguyen Thi Thuy Hang.
Over the past time, together with proactively reforming administrative procedures and striving to improve the investment and business environment, the provincial IZs Authority has worked out many flexible measures, creating favorable conditions for businesses.
Leaders and professional staff are always willing to counsel and guide enterprises on processing procedures related to investment, construction, and environment; handle labor-related issues in various forms like emails, social networking sites, phones, etc.
"In the course of processing procedures to realize our project in Hai Duong, our company was offered all favorable conditions. Administrative procedures were quick and transparent. Dossiers were often returned to our company before the deadline. Professional officials were capable and experienced, so their instructions were very specific and easy to follow," said Nguyen Thi Kieu Anh, Administration and Human Resources Director cum Assistant to the director-general of Leo Paper Products (Vietnam) Ltd.