Vietnam central region being emerged as an attractive destination for foreign investors

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.

Besides the prominent northern localities in attracting foreign direct investment (FDI) such as Bac Ninh, Bac Giang and Thai Nguyen provinces, the Red River Delta province of Thai Binh has become a bright spot in terms of FDI attraction, the Tuoi Tre newspaper reported.

The experts attributed the success to the fact that there has been a strong improvement in Thai Binh’s investment environment and the province locates near Lach Huyen deep water seaport cluster in Hai Phong city. The construction of a coastal highway connecting Hai Phong and Thai Binh is also a reason.

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Last year, Lien Ha Thai Industrial – Urban – Service Park in the province attracted four projects with a total investment capital of over 440 million USD, an expert said.

There is a shift of FDI investment from two major centres around Hanoi and Ho Chi Minh City to the central region due to the advantage of having many deep water ports and cheap rental prices which even only equal to one-third of that of the two cities.

It’s expected that, there will be a reallocation of the industry in the near future.

Once the investment environment is improved and infrastructure is upgraded, it is expected to fuel FDI attraction into the central region.

There was a movement of labour from major economic centres such as HCM City, Binh Duong and Dong Nai provinces to central provinces during the COVID-19 pandemic. The fact that many workers have not returned has resulted in a shift in the FDI trend to limit the risks of labour shortages.

“The pandemic has reshaped the investment trend at home and abroad. Available labour resources will be an advantage for any locality to attract investment,” the Tuoi Tre newspaper quoted.