HCM City has granted investment licences to 39 new foreign direct investment projects capitalised at a total investment capital of US$333.4 million and five with additional investment capital, according to Lu Thanh Phong, vice director of the city's Department for Planning and Investment.

However, Phong said this figure was still lower than the targeted $8.4 billion in FDI this year.

He said the city aimed to lure investment into lucrative projects including mechanics, engineering, bio-technology, IT and new materials.

The Saigon Hi-Tech Park (SHTP) will focus on three sectors: micro electronics, IT and telecommunications and research and development.

SHTP's authorities have already granted a licence to CMC group to invest and run telecom and internet infrastructures with a total investment capital of $11 million. The project aims to develop complete telecommunications and internet infrastructure facilities for businesses and organisations during phase one of the park.

Of the 29 licensed projects in February, 27 are located outside export processing and industrial zones and the remainder are located in Thu Thiem and South Saigon urban areas.

Currently, Quang Trung software park and export processing and industrial zones have tempted foreign investors with attractive incentives.

City authorities have also conducted land clearance and compensation for key projects such as Tay Bac, the new Thu Thiem urban areas and Hiep Phuoc Port in order to lure investors.

In addition, the city authorities have also agreed to auction five prime locations in District 1 which are expected to mobilise billions of US dollars.

The city has also arranged large-scale projects that are waiting for investment licences.