Binh Duong Province: a leader in hi-tech investment
Binh Duong Province: a leader in hi-tech investment
The southern province of Binh Duong is continuing to improve its business climate in an aim to attract investment in hi-tech industries and take advantage of the fourth industrial revolution.
Tran Thanh Liem, chairman of Binh Duong People’s Committee, in an interview with Việt Nam News, said: “The fourth industrial revolution will have a great impact on the province’s socio-economic development and help businesses apply science and technology so they can make hi-quality products.”
“But it will bring both opportunities and challenges. If investors know how to take advantage of the opportunities, they will improve competitiveness and build advanced production systems,” he added.
“To attract foreign investment, we plan to issue a range of policies and incentives related to administrative procedures and land and facility construction, especially in hi-tech industries.”
“The province has already become a popular investment destination, especially for Taiwanese, Japanese and Korean investors,” Liêm said. “It shows the province’s role in Viet Nam’s FDI attraction in general and the Southern Economic Zone in particular.”
Binh Duong has made great strides in improving its water and power supply, road network, waste treatment facilities, and in providing available land for new projects.
The province has invested a great deal in road infrastructure, facilitating connections with HCM City, the Mekong Delta and the Central Highlands region, among others.
Major transport routes, including Binh Duong Boulevard and My Phuoc-Tan Van Highway, connect local Industrial Parks (IPs) with seaports and airports in the southern region.
The province is also the leading province in the country in IPs, new urban areas and services.
In addition to the existing IPs, the province plans to open new industrial zones to attract more foreign investment.
FDI prospects
In recent years, more and more investment has been poured into Việt Nam via foreign direct investment (FDI) and official development assistance (ODA).
Bình Dương Province is the country’s second-highest FDI recipient, following HCM City.
In the first nine months of 2017, the province had a record-high FDI compared to the same period in any previous year, reaching 140 per cent of its annual target.
Nguyen Thanh Truc, director of Binh Duong Province’s Department of Planning and Investment Department, said that total FDI investment reached almost $1.97 billion in the first nine months, up 27 per cent over the same period last year.
Today, the province is giving priority to FDI projects with high technology and large-scale urban and service development projects.
In the first nine months, it attracted 148 new projects valued at a total of $1.165 billion.
Another 87 capital expansion projects added a total of $765 million, and around 90 per cent of the projects targeted industrial zones.
Binh Duong is now home to a total of nearly 3,000 FDI projects from 60 countries and territories, worth more than $27.7 billion.
To create a better investment climate, the province’s leaders and authorities regularly meet with investors and businesses to help them resolve problems.
“Improving the infrastructure system and creating an open dialogue with foreign investors are the keys to attracting investment,” Truc told Việt Nam News.
Vu Ngoc Khiem, chief representative of Global Sources, a Hong-Kong based B2B media, said many FDI firms, especially those from Taiwan (China), had been expanding and shifting their production to Viet Nam, especially Binh Duong, which is home to manufacturers of garments, textiles, furniture, shoes and hardware.
Leading Taiwanese-owned firms, including furniture maker Kingtec, window blinds manufacturer Global View, and garment and fabric makers Huge Bamboo and Motong were among those with high potential, he said.
“The key factors that investors consider are technologies, infrastructure and highly skilled human resources,” Khiem said. “A shortage of skilled staff is one of the challenges facing FDI firms as many of them have moved to HCM City to earn better salaries.”
Charles Yeh, sales director of Taiwan-based Global View Co. Ltd, said: “We’ve built a new factory in Binh Duong on an area of 72,000 square metres with 2,000 skilled workers. The province is an attractive destination for Taiwanese. We’ve noticed that the number of foreign investors visiting the province has increased significantly year on year.”
“With the fourth industrial revolution, the company will have better conditions to continue to uphold our technical innovations in production,” he told Việt Nam News.
“To create a better investment climate, the province’s leaders and authorities should work regularly with investors to learn about their challenges and help solve their problems related to business operations by making reasonable adjustments,” he said.
Japanese investors are also making significant investments, including more than $5.2 billion in 249 projects this year.
Japan remains the second biggest investor in Binh Duong Province behind Taiwan (China), accounting for 18.7 percent of the province’s total FDI capital, according to Truc.
Major Japanese projects in Binh Duong include the $1.2 billion Tokyu Binh Duong property project, the $450 million Wonderful Sài Gòn Electrics project in the Viet Nam– Singapore Industrial Park, and the $95 million Aeon Mall shopping centre.
Kawaue Junichi, general consul of Japan in HCM City, said: “Many Japanese companies are continuing to choose Binh Duong to invest, which shows the attractiveness of the business climate here.”
During a recent meeting with Bình Dương’s leaders, James Ha, chairman of the South Korea-based Sae-A Group, said that nearly 19,000 employees of the group’s 70,000 staff were working in Viet Nam.
The Sae-A Group operates in the field of textile and garments, but plans to invest in electronics and hi-tech in the future, according to Ha.
South Korea is Binh Duong’s third-largest investor after Taiwan and Japan, with 619 projects valued at more than $2.69 billion.
In the first months of 2017, South Korean investors continued to pour money in Binh Duong, with 16 new projects and 17 projects that registered to increase capital, amounting to total investment of $306 million from the country.
From now to 2020, Binh Duong plans to call for investment in 20 projects in transport infrastructure, healthcare, education, and other fields.
