When the region has become a large base of industrial manufacturers,
services for industry are available and competitive, such as logistic,
transportation, storage, banking, communication, and waste treatment,
among others. Technology transfer also becomes more efficient with a
network of several thousand of firms.
The gathering of several hundred thousand workers from all over the!
country creates a mass demand for the establishment of I services such as
education, vocational training, housing, shopping centers, recreation
centers, and entertainment. These amenities, together with the diversified
human capital create a quality of place that is highly desirable for foreign
and domestic workers, engineers, experts, and managers. Such a growing
pool of human capital becomes a new advantage of the region to attract
more investment.
Will the concentration of industry and workers cause living cost inflated
and infrastructure overloaded, and eventually weaken the attractiveness of
the region? The growing production of industry and the increasing budget
revenue of provincial government is the answer. Guangdong province of
China has received USD150 billion of implemented FDI and the addition is
still over USD15 billion each year with no sign of slowdown.
There is an important implication to other provinces. In the race to win
investment, their static advantages of ideal location, superior infrastructure,
lower labor cost, and better tax treatment are having to compete with the
dynamic advantage of critical mass. They must create their own dynamic
advantage; in which improving the soft infrastructure is a way will be
discussed in the next issue.
54. FDI VÀ SỐ ĐÔNG
Từ 1998 đến 2003, bốn tỉnh Đông Nam Bộ chỉ với 6,4% dân số cả nước
nhưng đã nhận được 31,5% dòng vốn đầu tư trực tiếp của nước ngoài
