HOCHIMINH CITY- SAIGON - List of projects calling for investment inHochiminh

LEATHER AND FOOTWEAR INDUSTRY OF HO CHI MINH CITY

Situation

HCMC has 942 companies of which 40 are state owned enterprises, 37 areforeign invested enterprises with the capital of US $ 447,235,626.

The production capacity of the HCMC accounts for 49.2% of the wholecountry.

Export-oriented industry (export revenue accounts for 84.8% of the totalrevenue).

Export to 80 countries in the world.

Export turnover to the EU market accounts for nearly 80%.

Main drawbacks:

Obsolete and not standardized equipment (85-90% of raw materials isimported).

High production costs due to non-availability of raw materials locally.

Marketing activities are still weak.

FIELDS CALLING FOR FOREIGN INVESTMENT

Material for the Industry:

Vinyl leather, plastic, synthetic rubber

Chemicals for tanning, felt cloth of various kinds

Accessories: thread, ribbon of various kinds

Development of cow-farming for leather

Investment in tanning.

PROJECTS CALLING FOR FOREIGN INVESTMENT

1. Training school specializing leather and footwear industry: US$ 200,000

2. Industrial zone specializing in tanning: US$25million

3. Industrial zone specializing in production of material and accessories:US$25million

ELECTRONIC INDUSTRY OF HO CHI MINH CITY

In HCMC, there are approximately 500 electronic companies, of which 44 areforeign-owned (8.8%) with an investment capital of about $US 300 mil.

TECHNOLOGY

Advanced: 30%

Average: 61%

Obsolete: 9%

HUMAN RESOURCES:

About 7,640 workers are employed in the electronic industry. Workers ofcollege education or higher account for 14% of the total workforce.

PRODUCTION CAPACITIES:

Home appliances:

TV: 1.6 million sets/year

Radio-cassette players: 800 thousands sets/year

Appliances for specific purposes:

Microwave equipments: 1,500 sets/year

Digital microwave equipments: 20,000  units/year

Switch board 1,000 Z10: 100,000 units/year.

Computers and electronic components: mainly  assembling.