many small and medium sized projects in Ho Chi Minh City received
supplementary capital in September.
According to HCM City ’s Department of Planning and Investment
(HCDPI), an additional 169 million USD was injected into 65 FDI
projects, mainly in industrial production, services and retail, an
average extra investment of 15 million USD per project.
This positive sign confirmed the improved confidence of small and
medium investors in the Vietnamese market’s development potential and
stability.
The Yuki Vietnam Company, that
manufactures parts for industrial sewing machines, invested an
additional 5 million USD to expand its workshops and purchase new
machinery and equipment. This is the third increase in the company’s
capital since 1994, raising its total investment in Vietnam to 20
million USD.
According to their Managing Director
Tsunoda Shinji, the company’s annual revenue in Vietnam currently stands
at around 16 million USD and is expected to increase to 24-26 million
USD in the near future. Its products are exported to India ,
Bangladesh and Indonesia .
The company is
urgently applying for a permit to sell directly in Vietnam , he said,
adding that at present, around 50 percent of Vietnamese garments
businesses use Yuki sewing machines.
Besides Yuki,
the company Lotteria has also upped its investment by 7 million USD to
expand its network of fast food shops while the retailer Giant South
Asia has spent 15 million USD more on its warehouses and outlets.
However, this increase in production still faces several
difficulties, including a shortage of skilled workers. It requires
investors to have training plans 3-5 years before they decide to
increase their capital.
According to HCDPI’s
Deputy Director Lu Thanh Phong, in 2009, around 115 FDI projects in the
city, mostly small and medium sized, received extra investments of 317
million USD, up 1.8 percent against the previous year.
While holding the upper hand in attracting additional investments,
small and medium FDI projects have also recorded a rapid rate of
disbursement, said Nguyen Tan Phuoc, the Deputy Head of HCM City ’s
Export, Processing and Industrial Zone Authority./.
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