Hai Duong’s foreign investment and export develop prominently after Vietnam’s participation in WTO

After seven years of deep integration into the global economy, there have been prominent developments in foreign direct investment and goods export in Hai Duong.


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Producing export suits at Hai Duong Garment II JSC.


Vietnam joined the World Trade Organization (WTO) in early 2007. After seven years of deep integration into the global economy, there have been prominent developments in foreign direct investment (FDI) and goods export in Hai Duong.


FDI waves


Prior to 2007, the province attracted only 132 FDI projects from 21 countries and territories with a total registered capital of USD1.461 billion and a total executed capital of USD561.1 million.


After 2007, newly granted FDI projects in the province did not increase sharply in quantity but changed significantly in scale and quality; at the same time, FDI enterprises’ total realized investment rose quickly.


The highlight of the years 2007 and 2008 was the concentration of foreign-invested projects on fields prioritized by the province, such as producing and assembling electronic products; manufacturing new materials, machines, telecommunications and audiovisual devices; producing and assembling automobile spare parts, medical equipment, etc.


Since 2009, the influence of the global financial crisis has led to the decline of investment flows into Vietnam in general and Hai Duong province in particular, according to Vuong Duc Sang, Director of the Planning and Investment Department.


However, the province has successfully lured a number of projects with big investment scales, such as the BOT project of Hai Duong Thermal Power Plant with a capacity of 1,200 MW and investment of USD2.258 billion; projects of expanded Tinh Loi Garment Co., Ltd., USD120 million, and Pacific Crystal Textile Co., Ltd., USD425 million; Kefico Co., Ltd.’s project of producing interior equipment and automobile motors, USD65 million, etc., thereby contributing to consolidating the position of Hai Duong as one of provinces, cities attracting the most foreign investment in the country.


At present, there are 254 FDI projects from 23 countries and territories with a total registered capital of over USD5.811 billion in the province. FDI enterprises’ total executed investment is estimated at USD2.7 billion, accounting for 46.4% of the total registered investment. FDI enterprises are providing jobs for around 120,000 laborers.


Impressive export growth


Seven years after Vietnam joined the WTO, Hai Duong province’s export turnover surged from















“Seven years after Vietnam joined the WTO, Hai Duong province’s export turnover surged from USD224.6 million in 2006 to USD2.242 billion in 2013.


USD224.6 million in 2006 to USD2.242 billion in 2013.


The total export turnover hit USD3.0369 billion during the 2006-2010 period, an average increase of 57.5%/ year (target of 25%/ year).


With the advantages of advanced machines, devices, and techniques along with more and more flexible markets, mechanisms, and policies, the FDI economic sector has been developing quite rapidly, stably and always tends to rise faster than other sectors.


In addition to domestic market exploitation, FDI has also contributed to raising export turnovers, especially in such industries as footwear, garments and textiles, manufacture and assembly of electronic components, cement production, etc.


FDI enterprises’ export value gets higher with every passing year and occupies a large proportion of the province’s total export turnover.


The enterprise bloc’s export turnover accounted for only 20.5% in 2000 and 48.5% in 2005 but up to over 96% of the province’s total export turnover in 2013.


The percentage of the FDI economic sector’s contribution to the province’s GDP gradually increased year after year: 13.8%, 16.4%, and 17.8% in 2005, 2008, and 2012, respectively.


After seven years of joining the WTO, Hai Duong export has changed dramatically in both value and exports.


The province’s goods have been brought to 30 countries and territories so far. Export markets for traditional commodities have continued to be maintained.


The number of import-export enterprises has increased ceaselessly in all economic sectors, from just over 80 in 2006 to more than 230 at the end of 2013.


Some major export items, including electronic products, garments and textiles, footwear, electrical wires and cables, agricultural produce, foodstuffs, etc., especially items manufactured by FDI enterprises, have seen relatively high growth rates.


VU UY




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