Vinh Long Province attracts automobile support industry projects
Vinh Long Province attracts automobile support industry projects
The open and transparent investment environment of Vinh Long Province, especially for investment in support industries, makes the Mekong Delta province an increasingly attractive business destination.
According to Vinh Long Province’s Department of Industry and Trade, the processing and manufacturing industries account for almost all industrial production (98.4 percent), but is experiencing a sharp drop due to the Covid-19 pandemic. However, technical infrastructure in some urban areas, industrial parks (IPs), industrial clusters (ICs), and highways is prioritized for investment attraction. Specifically, the My Thuan 2 Bridge and Trung Luong-Can Tho Expressway, expected to be completed soon, will facilitate investment and economic restructuring in the province.
Manufacturing auto components in Vinh Long Province |
A representative of the Vinh Long Department of Industry and Trade said that the province has 68 operational projects in IPs, including 40 foreign invested projects. The province has improved its investment environment by adopting favorable policies, and developing plans to attract foreign investors efficiently, especially in supporting industries.
Specifically, the Management Board of Vinh Long IPs has granted investment registration certificates to Japanese investors to implement Furukawa’s automotive parts factory project in the Binh Minh IP. Furukawa Automotive Systems has invested nearly VND1.152 trillion in an area of more than 10 hectares for manufacturing electric wire sets for cars. Its productivity of 5,727 tonnes of products per year makes it the third largest automobile support industry project in Vinh Long Province. The project is expected to increase export turnover and contribute over VND20 billion of tax payments to the state budget annually.
Investment projects in Vinh Long IPs have expanded from agricultural product and food processing, animal feed and aquatic products, to support industries such as auto parts manufacturing, a suitable investment attraction orientation.
The Vinh Long People's Committee has issued a plan for supporting industry development to 2025, focusing on such areas as automobile parts, garments and textiles, footwear, supporting industries for high-tech industries and for food processing. It aims to help support industry enterprises become suppliers for domestic and foreign customers, promoting the attraction of foreign investment in the provincial supporting industries.
The province will support enterprises in corporate governance and production management to meet the requirements of global value chains, as well as in human resources training, research and development, and technology application in trial production of components, spare parts and materials. It will also launch a portal on support industries. The total cost of this program is over VND41 billion, sourced from local and state budgets and reciprocal enterprise capital.
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In the 2021-2025 socioeconomic development plan, Vinh Long focuses on attracting investment, especially in its Hoa Phu and Binh Minh Ips, to gradually form dynamic economic zones. |
