Vietnam Promotes Investment in the Mekong Delta
Nov. 27 – On November 25th the Mekong Delta Investment Promotion Conference took place in Vinh Long province. The conference called for investments in more than 130 projects in the Mekong Delta.
According to Chairman Nguyen Van Diep of the Vinh Long Provincial People’s Committee, the purpose of the conference was to create “a space for investors and businesses to discuss policies, potentials and investment opportunities as well as figure out obstacles and difficulties to promote investment for the region.”
The conference was attended by such luminaries as Vietnam’s Deputy PM Vu Van Ninh, who pointed to the large levels of investment into the region by those looking to promote their businesses. The Deputy PM also suggested that businesses launch their entperises as soon as possible after receiving their investment certificate. He stated that the Vietnamese government would always work with businesses in order to guarantee their rights.
The Conference was but the most recent of the Vietnamese government’s moves to boost the economy of the Mekong Delta. The Vietnamese government has been strongly investing in the region and has spearheaded investments into such areas as infrastructure, harbors, agriculture/aquaculture, and energy projects.
The Mekong Delta, known in Vietnamese as Đồng bằng Sông Cửu Long or “Nine Dragon river delta,” is located in southwest Vietnam where the Mekong River meets the sea. The region is made up of 13 provinces.
Although not heavily industrialized, the Delta ranks third in Vietnam in terms of industrial gross output. The city of Cần Thơ is generally recognized as the center of economic activity in the region – about 48% of Vietnam’s industrial parks are located around the city. Almost half of the region’s industrial production is centered in just three areas: the city of Cần Thơ, Long An Province, and Cà Mau Province.
The Mekong Delta’s economy has been showing strong signs of growth for some time now. According to the Vietnamese government, the Delta region has an annual growth rate of 12%. Additionally, over 10 years, the regions GDP rose 3.5 times and its GDP per capita increased 2.5 times.
As of September 2013, the Mekong Delta has had a total of 802 valid projects worth around US$11 billion and had received US$4 billion of Official Development Assistance (ODA).
On November 23, the city of Cần Thơ began construction of a high tech scientific research center. It is expected to be completed by 2014 and to begin operations in 2015. The project is funded by the Republic of Korea and is located within the Tra Noc industrial zone.
The project is taking place under the framework of Vietnam-RoK cooperation on nuclear power, energy and industry; its goal is to support Vietnamese businesses in accessing and improving technology for farm and aquatic product processing.
It is clear that the Mekong Delta has a strong financial future ahead, both for itself and for those who can take advantage of the many opportunities that continue to arise there.
You can stay up to date with the latest business and investment trends across Vietnam by subscribing to Asia Briefing’s complimentary update service featuring news, commentary, guides, and multimedia resources.