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Local Economy

Last updated: Monday, September 24, 2018

 

Binh Duong Ranks Second in FDI Value

Posted: Tuesday, July 10, 2018


Binh Duong has made great strides in investment attraction in the past years, especially in 2017, thanks to its concentrated efforts for a better investment climate. The province ranked second in the country by foreign direct investment (FDI) value, with 3,075 projects with US$30.66 billion as of February 2018. Vietnam Business Forum Magazine has an interview with Mr Nguyen Thanh Truc, Director of the Binh Duong Department of Planning and Investment, on these impressive results. Quoc Hung reports.

Could you please briefly describe Binh Duong province’s remarkable achievements in investment attraction in the past years?
Binh Duong province continued to record a positive result of FDI attraction. In 2017, its FDI value reached US$2.8089 billion, up 133 per cent year on year and much higher than the full-year target of US$1.4 billion. In 2016 - 2017, the province lured a total of US$4.927 billion, fulfilling 70.4 per cent of the five-year plan of 2016 - 2020 (US$7 billion). In the first two months of 2018, Binh Duong drew US$435 million of FDI. To date, the province ranked second in the country by FDI with US$30.66 billion and 3,075 projects.

On domestic direct investment, Binh Duong province had 5,542 new corporate start-ups with a combined registered capital of VND29,059 billion (US$1.2 billion) in 2017, up 16.5 per cent in entities and 39.5 per cent in registered value over 2016. The province saw 1,054 existing companies add VND22,205 billion (US$1 billion) to their capital base in the year, up 27.3 per cent in entities and 67.4 per cent in value. The locality has 31,548 companies with VND247,523 billion (US$11 billion) of investment capital as of February 28, 2018.

The above investment attraction results showed that the investment and business climate in Binh Duong province is growing more open and favourable and is highly appreciated and recognised by the domestic and foreign business communities. The province’s investment environment is also focused for better progress towards sustainable economic development goals.



After attracting investment at all costs, provinces and cities tend to be more selective and give priority to high-tech, capital-intensive and environment-friendly projects. Would you be kind enough to tell us about the province’s view on this tendency?
Binh Duong province will not attract investment at all costs and always consider environmental criteria in the selection of investment projects as it has done for years. The province advocates furthering stable, quality and sustainable socioeconomic development; shifting the economic structure towards increasing the share of services and industry; raising growth quality and encouraging innovative startups and business development.

Therefore, the Binh Duong Provincial Party Committee issued Program 34/CTr-TU dated December 15, 2016 on investment attraction reform in 2016 - 2020, with the focus placed on attracting more major business and economic partners in the world; further promoting and prioritising hi-tech production projects; drawing investment flows into industries powered by advanced technologies to turn out high value-added and environment-friendly products; and attracting investment capital into industrial zones.

In investment attraction, Binh Duong province has given priority to projects using advanced technologies and less manpower. In spite of being a leading light in FDI attraction in the country, Binh Duong provincial leaders advocate carefully reviewing projects with high potential exposures to environmental pollution risks. As for previously environment-polluting projects, Binh Duong has mobilised investors to change technologies, upgrade production lines or relocate facilities to industrial zones. As for new investment projects, the environmental impact assessment report is always the first criterion in the investment licensing process.



What solutions has Binh Duong province taken to further improve the efficiency of investment attraction?
To further enhance investment attraction results, the Provincial People’s Committee issued plans for implementation of the Investment Attraction Programme for 2016 - 2020 with specific tasks assigned to each department and agency to build and perfect mechanisms and policies; improve essential technical infrastructure; accelerate the reform of administrative procedures concerning investment; carry out plans to fulfil commitments to the Vietnam Chamber of Commerce and Industry (VCCI) on reducing the time needed to carry out procedures for business establishment and investment registration certification.

In order to contain hardships and obstacles facing businesses and to provide better support solutions, the Provincial People’s Committee also regularly organises ceremonies of investment certification and meets domestic and foreign business communities.

To build a “smart city”, provide favourable conditions for the province to develop outstanding policies on urban construction and management, build Binh Duong into a high-tech industry destination; seek innovative measures to bring a comfortable, good, urbane and modern life to people, the Binh Duong Provincial People’s Committee signed the memorandum of understanding with the City of Eindhoven, Netherlands, in early 2015. Both sides assigned representatives to carry out research and investigations to identify key objectives, actors and partners to draw up a concrete plan for tripartite cooperation model of the government, academics and enterprises for the province. And, the premise is building the smart city of Binh Duong.

Thank you very much!








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