Mekong River delta has an abundant but unqualified workforce (Photo is taken in Can Tho City; Source: the Internet)
(VOVworld) – The Mekong River Delta possesses advantages in rice, fruits, and seafood. But the attraction of investment capital, especially foreign direct investment, remains low compared to other regions in the country. What and how to improve FDI attraction is the region’s top concern. .
The Mekong Delta, comprised of 12 provinces and one city is a key agricultural economic area in the southern region, with more than 17 million people and a GDP growth of 11% from 2001 to 2010. Each year, the region enjoys a relatively big trade surplus. Last year, it earned about 9.6 billion USD from exports, mostly of rice and seafood.
Despite advantages in selling abroad many agricultural and aquatic products, FDI attraction is still restricted, accounting for 7% of the country’s total. To date, the whole region has lured more than 11 billion USD of FDI with Long An, Kien Giang, and Tien Giang provinces attracting more than 1 billion USD.
Long An is leading the region with a total registered FDI capital reaching 3.5 billion USD followed by Kien Giang and Tien Giang getting 3.1 billion USD each. To date, Vinh Long and Soc Trang haven’t attracted any new projects.
Poor infrastructure, inadequate labour skills, and low productivity are considered the main reasons behind the regional attraction for foreign investors. Tran Anh Tuan, Vice Chairman of Ben Tre People’s Committee, said his province was boosting administrative reforms and expanding industrial zones, and reserving more land to attract FDI projects. He said that province is going to complete the construction of Co Chien Bridge and added:
“On top of improving administrative procedures to create a transparent investment environment, we will focus on the building of an additional 7 industrial zones, 2 of which will be expanded to cover a total area of 1,000 ha. We also commit to facilitate better conditions for investors who invest money into the province for the long-term interests of both sides.”
Apart from infrastructure issues and abundant workforce, investment environment and policies for investment attraction should also be further improved. Le Minh Hoan, Chairman of Dong Thap People’s Committee, underlined the need to increase the responsibilities and awareness of leaders at all levels in improving the FDI attraction environment. Hoan says:
“The provincial Party Committee has asked the entire political system, from the provincial to the grassroots levels to pay attention to the Provincial Competitiveness Index (PCI). It is necessary to improve the expertise of officials at all levels in legal issues and matters related to management capacity.”
The Mekong Delta provinces are particularly interested in issues relating to the workforce and investment environment. Doctor Vo Hung Dung, Vice Chairman of the Vietnam Chamber of Commerce and Industry, says:
“We particularly attach importance to labour productivity, the investment environment, and building an image of a dynamic and active Mekong Delta. Attracting FDI is not just a matter of advertising the region’s agricultural and aquatic products; the region should also highlight its new comparative advantages in the marine economy, and recent achievements in investment environment improvements.
Changes in infrastructure investment and a determination by local leaders to improve their investment climate has been turning the Mekong Delta into an attractive destination for foreign investors.