Vietnam's industrial and economic zones attract US$ 4.3billion amid Covid-19 pandemic

Industrial zones (IZs) and economic zones (EZs) attracted 390 foreign-invested projects with a total registered capital of US$4.3 billion in the first five months of this year, according to the latest updates of the Ministry of Planning and Investment.

Candy Lee

candylee10231023@gmail.com June 05, 2020 | 17:25

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vietnams industrial and economic zones attract us 43billion in january may

A view of Dung Quat Economic Zone. More than US$4.3 billion was registered to be poured into industrial zones and economic zones in the first five months of this year (Photo: VNA)

According to Vietnam News, so far, there have been 9,850 FDI projects in IZs and EZs nationwide with a total registered capital of $195 billion, more than 70 per cent of which has been disbursed.

Besides, a sum worth about VND46 trillion ($1.98 billion) in domestic investment was registered to be poured into 295 projects in IZs and EZs in January-May, bringing the total number of domestic-invested projects to 9,650 with a total registered capital of VND2.3 quadrillion. The disbursement rate of domestic capital was around 45 per cent.

The report of IZs and EZs management board showed that companies in IZs and EZs strove to maintain production and business despite the impact of the COVID-19 pandemic which caused a year-on-year drop of 8 per cent in the total revenue to $81 billion in the first five months of this year.

In 2020, many large IZs and EZs that have been put into operation have occupancy rates of up to 80 - 100%.

Companies in IZs and EZs created more than 3.82 million jobs (Photo: Securities News)

As of the end of May, Vietnam has 335 IZs, among which 260 IZs have operated with a total land area of 68,700 ha. 75 IZs are being constructed with a total land area of 29,200 ha, Vietnam Biz reported.

With an amount of $58 billion, companies in IZs and EZs' export revenue rose by 4 per cent. Meanwhile, these companies's import revenue rose by 1.5 per cent to reach $47 billion.

In terms of jobs, companies in IZs and EZs created more than 3.82 million jobs. This is nearly 30,000 jobs lower than the end of 2019.

The Ministry of Planning and Investment said that some 120 companies in IZs temporarily suspended operation due to the Covid-19 pandemic from the beginning of this year.

There were 37 IZs within EZs. The occupancy rate of IZs was 76.1 per cent.

In addition, 17 coastal economic zones had been founded with a total land and water area reaching more than 845,000ha and area for lease reaching 40,000ha, the Star reported.

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Candy Lee