US firms eye expanding investment in HCM City

More and more US businesses have been looking to pour capital into or expand their existing investment in Ho Chi Minh City, especially in hi-technology, electronics, and telecommunications, as well as other areas where the city has strengths.

A corner of Ho Chi Minh City (Photo: VNA)

Municipal authorities have granted a certificate to the US’s Intel Products Vietnam (IPV) Co. Ltd, allowing it to add 475 million USD to its project in the city’s hi-tech park and bring the total to over 1.5 billion USD.

Vice President and General Director of IPV, Kim Huat Ooi, affirmed that it will not reduce the size of its factory in Vietnam and plans to continue pouring in huge sums in the future.

IPV is one of ten Intel production facilities worldwide and receives the largest high-tech investment in Vietnam coming from the US.

According to Hua Quoc Hung, head of the HCM City Export Processing and Industrial Zones Authority (HEPZA), the city’s industrial parks are home to eight foreign-invested electronics projects with capital over 20 million USD. The largest is a plant worth 1.066 billion USD belonging to the US’s First Solar Co., Ltd.

Statistics show that over 160 US businesses are now investing in HCM City.

The southern hub is an attractive destination for new investment flows from multinational corporations, especially US tech firms moving their production out of China.

Its sound technology infrastructure, smart transport, and skilled workforce are advantages helping the city be more attractive in the eyes of investors.

Municipal authorities have rolled out specific orientations to strengthen cooperation with the US in the 2020-2025 period, focusing on expanding US investment in the city’s scientific and technological services supply chain, promoting innovation, turning the city into a smart city and an international financial centre, and forming a creative and interactive urban area in the city’s east.

Analysts have said the city needs to showcase its unique advantages in order to stand out among investment destinations so as to attract more foreign investment, especially from the US.

Source: VNA