In 2005, Ho Chi Minh City attracted US$805.5 million foreign direct investment projects according to Department of Planning and Investment. Luong Van Ly, Vice-Director of the Department suggested this success depends on many reasons, of which two main factors are good investment promotion and administrative reform. Investment publicity and promotion costs VND5 billion in 2005.
Mr. Don Lam, General Director of VinaCapital managing Opportunity Fund (VOF), said one hundred bank and investment fund leaders attending an investment conference in Ho Chi Minh all thought there are many opportunities in Vietnam.
These funds are managing nearly US$200 billion. VinaCapital has set up a new fund for estate investment which is contributed by the above-mentioned investors. For instance, Millennium Partners, a US four-billion fund has invested US$20 million in VOF.
Managing Director of Millennium Partners Robert Knapp said, “If our investment in VOF brings profits, we will pour more money into Viet Nam.”
Mr. Ly forecasts foreign investment capital in Ho Chi Minh City will increase in 2006 because large projects such as new cities Thu Thiem, Tay Bac, Thanh Da appeal to investors. To increase the city’s competitiveness, the city’s leaders are revising frozen projects and revoking land for new ones.
Mr. Ly says health field is interesting foreign investors. Therefore the leaders of Planning and Investment department are working with Department of Health in re-arranging the hospitals in the city to identify the investment needed in this field.
In the first eleven months of the year 2005, Ho Chi Minh City ranks fifth nationwide with 207 projects and total capital about US$249.8 million.
From 1998 to now, Ho Chi Minh is holding the lead in foreign investment. The total projects made up 30.6 per cent, registered capital about 24.3 per cent of the whole nation. The average capital of a project is about US$6.73 million.