HCMC: FDI investment rise nearly 46%

Manufacturing electronic components at Nidec Sankyo Vietnam. Photo T.D

In that, South Korea's investors accounted for the largest share of investment capital (27.8%) with $US 95.11 million, followed by Malaysia was 13.2% with $US 45.07 million, and Singapore was 11, 7% with $US 39.91 million, Japan was 11.4% with $US 38.9 million,...

It mainly focusing on industries/sectors such as manufacturing and processing with the highest investment (35.9%) with $US 122.7 million; Wholesaling and retailing, repairing cars, motorcycle and motorbikes accounted for 27.1% to $US 92.75 million; Information and communication with $US 55.21 million, accounting for 16.2%; Real estate business accounted for 11.8% with $US 40.25 million.

Moreover, the operational environment of enterprises in Ho Chi Minh City continues to improve. In the first 5 months of the year, about 15,500 enterprises were licensed with the total registered capital of 193,800 billion vnd, increasing by 10.4% and 54.2% respectively in the number of enterprises and capital compared to the same period.

Also, the HCMC’s government has supported to encourage individual household business to switch to the type of enterprises. Until now, there are 413 individual households moved to the enterprise.

The People's Committee of HCMC said that, in the upcoming months, the city will continue to focus on improving start-up ecology and promoting innovative start-ups, creating a conducive environment for facilitating the transfer of business households to operate in the form of enterprises through business support policies.

The advantage of moving to operation as an enterprise could be seen like increasing prestige, expand production capacity, promote an image. In particular, the case of non-profit activities, it does not pay business income tax and transfer loss to the next years, easy to control costs and revenue to share profits for shareholders, easy to access to cheap capital from banks, etc.

The goal of Ho Chi Minh City is to reach the number of 500,000 enterprises by 2020 and it has reached 60,000 enterprises in this year. A total number of businesses operating in Ho Chi Minh City is currently about 300,000.