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| The textile and garment industry employs a large workforce |
Major contributions
Free trade agreements and promotion programs for investment, trade, tourism... are regularly organized, opening up expectations for a new wave of investment and attracting resources for socio-economic development for Vietnam and Thua Thien Hue. This is also an opportunity for Vietnam to participate more deeply in global supply chains and become an attractive destination for foreign investors.
Data from the Department of Planning and Investment shows that during 2021-2024, Thua Thien Hue granted 45 licenses to new FDI projects with a total newly registered investment capital of 604.8 million USD, of which 30 projects have commenced operations. Thus, Thua Thien Hue has 136 active foreign direct investment projects up to the present, with a total registered investment capital reaching 4.6 billion USD.
Through these investment resources, Thua Thien Hue has conditions for comprehensive development, attracting secondary investors and major brands to Hue. Currently, the FDI sector contributes 10% to the province’s annual GRDP and is expected to contribute about 850 million USD to the budget in the 2021-2025 period, nearly double compared to the 2016-2020 period. In just the first 10 months of 2024, FDI enterprises contributed 37% to total budget revenue and accounted for 41% of domestic revenue. Moreover, FDI enterprises also make significant contributions to tax revenue and promote export and import activities.
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| Vehicles of the Kim Long Motor Hue Joint Stock Company |
Notably, in the last months of 2024, many large FDI projects in the area began operations, such as Aeon Mall Hue Shopping Center (Japan) with a total registered capital of 169.67 million USD; Kim Long Motors Hue project (phase 1) with a capacity of 3,500 vehicles/year; Kanglongda Factory..., contributing to changing the appearance and elevating Hue’s position in investment promotion and attraction, especially the foreign investment.
Additionally, FDI enterprises generate employment for a large number of local workers. Specifically, during 2021-2024, FDI enterprises have created nearly 2,500 jobs. By the end of 2025, this number is expected to reach 26,000.
On-site investment promotion
FDI enterprises are leading exports, creating jobs and income for workers, and supporting local businesses to participate in global value chains. Therefore, the province’s annual investment promotion program focuses heavily on attracting FDI investment. The province has issued many preferential mechanisms and policies to attract investment suitable to the local context, focused on training high-quality human resources, creating links between FDI enterprises and training institutions in labor use, and improved the labor market information system to solve human resource difficulties for enterprises investing in Hue.
Ms. Nguyen Thi Bich Thao, Director of the Center for Investment, Trade Promotion and Enterprise Support, said that in recent years, Thua Thien Hue has been more proactive in approaching major investors in industrial park development, technology, commerce, real estate... Along with organizing large conferences and seminars, Thua Thien Hue also organizes small and medium-scale promotion activities for easy approach and selection of specific projects and corporations, conducts targeted and in-depth investment promotion, maintains and expands international relations and friendly cooperation with partners towards diversification, multilateralization, and effectively exploits partnership relations, especially in economic cooperation, trade, investment, tourism, labor,...
Investment support activities have also helped Thua Thien Hue “score points” with investors. The Aeon Mall Hue Shopping Center project can be taken as an example.
The project began construction of the main items in January 2023. Although facing many difficulties in implementing related procedures, after just over 1 year, the project has gone into operation following the investor’s commitment. This is considered a bright spot in investment attraction activities and also the clearest evidence of government support for businesses. During the project implementation period, provincial leaders repeatedly inspected, listened to, grasped each difficulty of the investor, and promptly removed obstacles, helping the project achieve its proposed progress.
As assessed by Mr. Okada Masaki - General Manager of Aeon Mall Hue Shopping Center, besides the focused investment of the enterprise’s resources, the project received close support, guidance, and accompaniment from local authorities as well as departments and sectors according to the initial commitment. The authorities and departments of Thua Thien Hue have actively listened, accompanied, and coordinated with investors to find solutions to solve difficult issues and create favorable conditions for businesses to implement processes and procedures. That is the motivation for helping businesses better implement development and business plans, accompanying the local socio-economic development.
It can be seen that when this project went into operation, it created a new appearance for An Van Duong New Urban Area, energizing Hue’s night economy as well as stimulating growth in the food and entertainment sectors and attracting many major brands to Hue.
Mr. Phan Quoc Son, Deputy Director of the Department of Planning and Investment, emphasized that Thua Thien Hue always accompanies, listens, and promptly takes measures to remove difficulties for investors. Following that orientation, Thua Thien Hue has promoted the effectiveness of 4 working groups under the direction of the Chairman and Vice Chairmen of the Provincial People's Committee. For off-budget projects, the working groups also assign responsibilities to specialists from provincial specialized agencies to support each project in removing related difficulties. At the same time, the province also focuses on building a transparent, open and most favorable investment environment for all investors in order to be continuously honored in the list of top 10 localities with excellent economic management.
“Thua Thien Hue also accelerates planning work, administrative procedure reform, and creates conditions for infrastructure, land... to attract more “flagship enterprises” - large enterprises and corporations capable of dominating the market and operating in fields with high spillover effects, leading the economy to invest in Hue,” said Mr. Son.
(*) From January 1, 2025, Thua Thien Hue province became Hue City under central authority according to Resolution No. 175/2024/QH15, dated November 30 of the XV National Assembly.