Growing FDI in the Mekong Delta

Although FDI in the Mekong Delta has historically been low compared to other parts of Vietnam, the region is rapidly emerging as an attractive destination for foreign investment. The number of FDI projects in the Mekong Delta increased by 73% from 2010, driving total FDI growth of nearly 20% per annum since then – more than double the national average.

While virtually all provinces of the Mekong Delta are attracting FDI, Long An has emerged as the biggest investment magnet. Located directly to the south of Ho Chi Minh City, it is home to 609 projects and 4 billion USD in registered investment capital – more than half of all the registered FDI projects and a third of all registered investment capital in the Delta.

20 percent annual growth in FDI

Long An’s success can be attributed to its proximity to Ho Chi Minh City. As land in Greater Ho Chi Minh City becomes more expensive and labor increasingly difficult to find, companies in the manufacturing and services sectors are looking to nearby provinces for better value. Particularly in light manufacturing sectors like garments and food processing, companies are moving south.

Can Tho, the region’s urban hub, is also growing quickly. So is Tien Giang, the province directly south of Long An. Tien Giang hosts the main traffic connection between Ho Chi Minh City and the Mekong Delta, making it a convenient transit point and location for FDI projects.

Another interesting province is Kien Giang. Despite its remote location at the southwestern edge of the country, it has attracted significant investments across a range of sectors, including construction materials, transportation and energy. Tourism is also growing on account of the booming popularity of Phu Quoc island.