Investments in HCMC industrial, export processing zones rise to record high

By Le Tuyet January 24, 2024 | 07:55 pm PT

A worker at an electronics manufacturing factory in HCMC's Tan Thuan Export Processing Zone. Photo by VnExpress/Le Tuyet

Investments in HCMC’s export processing zones and industrial zones were worth US$1.012 billion last year, the highest in the last 30 years.

Since the establishment of the first industrial zone over 30 years ago, they have been attracting $480-500 million a year with the exception of 2011, when $1 billion flowed into them.

Last year’s $1.012 billion, which went into both new and existing businesses, marked an 84% increase from 2022.

It included nearly $223 million in foreign direct investment.

According to HCMC Export Processing Zone and Industrial Park Authority (HEPZA), which manages the city’s EPZs and IPs, investment surged last year since many existing companies expanded operations, especially those in capital- and technology-intensive industries like high technology, mechanical manufacturing and telecom.

Companies in other industries also invested heavily in technology to optimize their production and fall in line with the city's plans to restructure industry by shrinking labor-intensive sectors.

HCMC has 17 operating EPZs and industrial zones which house nearly 1,700 companies and employ over 252,000 workers.

In 2024 HEPZA targets attracting investments of $550 million.

It is currently scouting for lands for the construction of the Pham Van Hai Industrial Parks 1 and 2, converting the Le Minh Xuan Industrial Park 2 into a specialized industrial park for the pharmaceutical sector and developing the high-rise factory model to improve land use efficiency.