In contrast to the decreasing trend in large-scale investment projects, many small and medium sized projects in Ho Chi Minh City received supplementary capital in September.
According to HCMC’s Department of Planning and Investment (HCDPI), an additional US$169 million was injected into 65 FDI projects, mainly in industrial production, services and retail, an average extra investment of $15 million 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 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.
According to their Managing Director Tsunoda Shinji, the company’s annual revenue in Vietnam currently stands at around $16 million and is expected to increase to $24-26 million 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 to expand its network of fast food shops while the retailer Giant South Asia has spent $15 million 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, 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 HCMC’s Export, Processing and Industrial Zone Authority.
