The Prime Minister has also approved the investment policy for constructing the Vinh Thanh Industrial Park (VSIP Can Tho).
With many favourable conditions, Can Tho promises to become an attractive destination for investors. However, lack of investment and inefficient investment affect the city’s development.
According to statistics from the Can Tho Institute of Socio-economic Development during the 2014-2023 period, Can Tho remained heavily dependent on state budget sources, averaging 13.86%, while non-state sources and foreign direct investment (FDI) were minimal (at 7.5% and 5.24% respectively).
In the first nine months of 2024, the city only approved three new projects. Investment attraction, especially FDI from large economic groups, multinational corporations, and flagship projects, has not met expectations.
There are many reasons why the city has not truly become an attractive destination for investors. The city’s change in economic structure has been slow, with the proportion of economic sectors not changing significantly toward higher value-added activities. Transport infrastructure development is not commensurate with, nor has it met development requirements.
Additionally, limited quality labour has led to difficulties for many businesses in recruiting highly skilled workers for specific industries. Building industrial supply chains in the city and connecting with neighbouring provinces still faces many challenges regarding upstream supply shortages and infrastructure limitations, reducing connectivity and the ability to develop complete supply chains in the region.
To take advantage of opportunities and overcome challenges in attracting investment, especially non-state sources and FDI, Can Tho needs to create more favourable and open business environment conditions for businesses to develop and lay the groundwork to attract more capital. The city needs to study and improve mechanisms and policies to attract investors.
It needs to focus on resolving difficulties and obstacles for businesses. One important solution is building a high-quality workforce, increasing product content knowledge, and improving labour productivity.
