Foreign Direct Investment in Vietnam – the Mekong Delta Key Economic Region

Foreign Direct Investment in Vietnam - the Mekong Delta Key Economic Region

The Mekong Delta Key Economic Region (KER), which includes Can Tho, An Giang, Kien Giang and Ca Mau, offers strategic advantages, investment opportunities and a unique potential for both domestic and foreign stakeholders.

In 2022, Mekong Delta KER exhibited resilience and growth, contributing significantly to the national GDP, with a diverse economic portfolio in agriculture and aquaculture, attracting investors seeking a blend of tradition and innovation.

Furthermore, its strategic location along the Mekong River facilitates cross-border trade and tourism, with a recent emphasis on sustainable practices.

Can Tho: a Gateway to Prosperity

Can Tho is strategically positioned to facilitate trade and commerce, and it’s home to 86 foreign-invested projects worth 2.2 billion USD from 2

2 countries and territories, accounting for 86.3 percent of the total regional FDI inflow. Can Tho City has made significant contributions to the region’s GDP, leveraging its strategic location and robust infrastructure.

Now has six industrial parks Thot Not (600 hectares), Tra Noc 1 (100 ha), and Hung Phu 1 (262 ha), which have an occupancy rate of 68%.

Notable FDI projects are Vietnam Singapore Industrial Park, whose construction was started on 2023 and with a total investment of 153.8 million USD, and the 16-million-USD factory invested by Takesho Food.

An Giang: a Bridge with ASEAN

An Giang holds paramount significance as a key connectivity point not only within the region but also in the broader context of other ASEAN countries.

Fast forward to mid-2023, An Giang Province has an investment of 658 projects, encompassing 619 Domestic Direct Investment (DDI) with a total registered investment capital is around 4.35 billion USD, and 39 FDI projects originating from diverse countries and territories with a total investment of 305.9 million USD. Among the main FDIs in the province, we can mention Spectre, the Danish manufacturer of functional garments, and a smart IP project worth nearly US$900 million.

This economic upswing has not only brought about a transformative atmosphere but has also acted as a potent catalyst for growth and development, resulting in the creation of employment opportunities for 16,800 workers.

Kien Giang: the land of “golden forests and silver sea”

Kien Giang is located in the southwest of Vietnam, in the Gulf of Thailand, and it’s well known for its 200 km of coastline, rich marine resources with a fishing ground of 63,290 km2. At the beginning of 2023, the province had 775 projects in many fields, with a total registered capital of over 25 billion USD.

Being a famous tourist destination, not only domestically but also worldwide, it attracted 328 investment projects in the tourism sector, with 286 projects in Phu Quoc only, accounting for 86% of the tourism investment projects in the province.

It can be seen that Kien Giang is a dynamic, innovative, and wealthy province of the country, being host to interesting FDI projects such as a resort worth 1.6 billion USD owned by the BVI’s Starbay Holdings.

Ca Mau: the Southern tip of the mainland

Ca Mau city is geographically located at the southern extremity of Vietnam. This place is one of the largest fishing grounds, with potential and strengths in marine economic development and is also recognized by UNESCO as a world biosphere reserve.

Ca Mau has achieved important achievements in socio-economic development in recent years and it’s GRDP in 2023 is estimated to reach more than 45.4 trillion VND, up 7.83% over the same period and exceeding the plan.

Ca Mau is preparing for a new step of change in promoting infrastructure development, building highways, developing waterways as well and improving the investment and business environment to attract more investors. Among the FDIs present in the province, we have the Taiwanese Gallant Ocean Group, who established a shrimps processing plant in 2019.

In conclusion, the Mekong Delta KER is a vibrant center of economic growth and rich culture, with newly established FDI projects and a weaving a history of growth and untapped potential, especially for agriculture, aquaculture and tourism as well.

The above content is provided for informational purposes only. The provision of this article does not create an attorney-client relationship between D’Andrea & Partners and the reader and does not constitute legal advice. Legal advice must be tailored to the specific circumstances of each case, and the contents of this article are not a substitute for legal counsel.