Binh Duong’s investment environment facilitates FDI attraction

by NDO24 December 2020 Last updated at 12:39 PM

Secretary of the Binh Duong Provincial Party Committee Tran Van Nam (second from right) talking with representatives of FDI enterprises.
Secretary of the Binh Duong Provincial Party Committee Tran Van Nam (second from right) talking with representatives of FDI enterprises. - Binh Duong Province has created an attractive investment environment and has been effectively attracting foreign direct investment (FDI).

Effective investment attraction

In 2020, Binh Duong attracted US$1.85 billion worth of FDI, 31.8% higher than the year’s plan. The result raised the province’s FDI source to 3,928 projects, with total registered capital of US$35.4 billion, from 65 countries and territories around the world.

According to the Binh Duong Provincial Department of Planning and Investment, Binh Duong’s current FDI sources mainly invested in the fields of industrial production, trade and services. The major investment projects are: the electronic component manufacturing project worth US$450 million by Japan’s Wonderful Saigon Electrics Co., Ltd; the electronic component manufacturing project worth US$340 million by Saigon Stec Co., Ltd (Japan); the Sweden-based Tetra Pak Company’s investment in the EUR120 million sterile paper boxes factory; the Republic of Korea (ROK)-based Kalon Industries Group’s investment of US$220 million in manufacturing car tires; the KyunBang Vietnam Co., Ltd (the ROK) with investment of over US$179 million in the production of fibres and fabrics; and two projects worth total US$106 million by the BW Industrial Development Thoi Hoa Co., Ltd.

According to the Binh Duong Provincial People’s Committee, the locality’s FDI source mainly focused on industry and services, contributing to transferring its economic structure in line with the direction that industry and services sector play a key role (accounting for 88.92%). The FDI businesses also boosted industrialisation and modernisation in Binh Duong through the transfer and innovation of production technology; connected with domestic enterprises, focusing on hi-tech industries, supporting industries and manufacturing highly competitive products of the province. Therefore, they contributed to meeting the need to supply raw materials for domestic production as well as creating high trade surplus value, bringing the province's trade surplus in 2020 to nearly US$6 billion.

From the investors’ perspective, many enterprises highly appreciate Binh Duong's favourable investment environment. Kim Won Sik, President of the ROK Business Association in Binh Duong, said that the province is still a land with great potential for the development of both domestic and foreign groups and enterprises. In addition to world-class infrastructure system, the provincial authorities have released many open mechanisms and policies and accelerated administrative procedures reform and business environment improvement, attracting great attention from investors. Therefore, more investors in developed countries will certainly explore investment opportunities in Binh Duong.

Creating favourable business environment

Towards attracting sustainable investment, Binh Duong has implemented an innovation programme to attract investment, focusing on partners with strong economic potentials and major groups. The province has also enhanced the attraction of FDI into hi-tech, high added value and environmentally friendly industries as well as industrial parks and clusters. The locality has also attached great importance to supporting industries, thus participating in global value chains of multinational corporations. The reality shows that the province’s FDI attraction target is on the right track.

To create favourable conditions for enterprises, Binh Duong will continue to improve the investment environment, enhance competitiveness, and promote support for the development of investment enterprises in the province; as well as focus all resources to perfect socio-economic infrastructure system such as traffic, water supply, electricity, and environmental treatment. The province will also expand industrial parks and create a clean land fun for investment attraction; train high-quality human resources; construct social houses for workers; and sufficiently and promptly supply labour force for investment enterprises in the locality. In addition, the local authorities will continue to boost administrative reform while developing high-quality services to meet the production and business demands of enterprises along with the needs for developing industry and urban areas of the province. The provincial leaders will direct agencies to ensure political security, social order and safety to help enterprises feel secure in investment, production and business in Binh Duong.

A creative innovation zone has been developed in Binh Duong Province towards the innovation of growth models and creation of breakthrough in infrastructure to welcome new-generation FDI wave. This is the next step of the Binh Duong Smart City Project. The creative innovation zone is expected to create leverage to promote and build Binh Duong into a province with an innovation ecosystem, or sustainable creative innovation culture, which is considered the foundation for an attractive investment environment. Talking about the creative innovation zone project, Chairman of the Binh Duong Provincial People’s Committee Nguyen Hoang Thao said that the creative innovation zone has an important significance for the province in the near future as it reflected the locality’s aspiration during the recent term and its vision for 2030-2045 period. He emphasised the province’s industrial development in association with the scientific and technological development and economic development in line with the region’s economic development.

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