Proactive and Supportive Partner of Businesses

4:55:29 PM | 11/2/2023

Bac Ninh province has established itself as a leading destination for business and socio-economic development in Vietnam, thanks to its favorable and open business environment. The province has leveraged its local strengths and actively pursued administrative reform initiatives to enhance the business climate and attract investment and development from various sectors.

Yen Phong 2C Industrial Park is a prime investment location in Bac Ninh province

Compared to other provinces, Bac Ninh has many comparative advantages in geographical location. As a province in the Red River Delta, Bac Ninh is located in the key economic triangle of Hanoi - Hai Phong - Quang Ninh and is the northeast gateway to the capital Hanoi, adjacent to major economic centers of the North. The province has a convenient transportation system with the Hanoi-Bac Ninh highway system and important routes connecting the province with the economic, cultural, and commercial centers of the North. Additionally, Bac Ninh is located near Noi Bai International Airport and Hai Phong Seaport, creating good opportunities for economic exchanges and goods circulation in the province. Therefore, many investors from countries and territories with advanced and modern industrial production such as Japan, Korea, Europe and America have come to invest in Bac Ninh, including Samsung, Canon, Suntory PepsiCo, Foxconn, Amkor, Goertek and Hanwha Techwin.

The province’s industrial zones and clusters have been improving their facilities, making it an attractive destination for foreign investment. Since 1998, the province has established 16 concentrated industrial zones approved by the Prime Minister, with 12 of them already operational. The total area of rented industrial land in these zones is about 2,481.57 hectares, with an occupancy rate of planned industrial land for lease reaching 60.04%. In the first nine months of 2023, the province attracted 91 new investment projects, with a total newly registered and adjusted investment capital reaching US$1,308.34 million including 79 FDI projects with a total newly registered and adjusted investment capital of US$1,172.48 million; 12 domestic projects, with total newly registered and adjusted investment capital of VND3,124.8 billion (US$135.86 million). After half the term (2020-2025), Bac Ninh industrial zones attracted more than US$5 billion, ranking 7th in the country from US$19.7 billion in 2020 to US$24.7 billion in 2023.

Bac Ninh industrial zones host world-famous corporations with large-scale, advanced technology and global brands, leading to a chain of satellite investors creating high added value and developing supporting industries.

Infrastructure systems of information technology, telecommunications, electricity, water, and housing are built synchronously according to planning and connected to foreign traffic routes. This creates motivation to attract foreign direct investment and meets the needs of production and business activities of investors.

Moreover, Bac Ninh has always focused on reforming administrative procedures to create dynamic comparative advantages and increase competitiveness in attracting FDI. The provincial government at all levels and sectors has implemented administrative reform drastically and thoroughly with a focus on administrative procedure reform. This has removed difficulties and problems for investors, creating the best investment environment for businesses.

At the 2023 Business Dialogue Conference, held in June 2023 with the theme “Working with businesses to overcome difficulties and promote development,” Standing Vice Chairman of Bac Ninh Provincial People’s Committee, Vuong Quoc Tuan, affirmed that this is an opportunity to listen to voices from businesses, cooperatives and business households. This will enable provincial authorities at all levels to realistically recognize the problems being raised, remove bottlenecks, improve local governance efficiency, improve the business investment environment and accompany development. At this conference, Bac Ninh announced the decision and launched five groups of experts to overcome difficulties and accompany businesses, aiming to quickly and completely resolve the recommendations of businesses and cooperatives.

Bac Ninh Province attracts many major investors

According to Nguyen Anh Tuan, Secretary of the Bac Ninh Provincial Party Committee, the province has gained a better understanding of the challenges faced by businesses, cooperatives and business households by actively seeking their opinions and recommendations. The provincial leaders view the difficulties of businesses as the general difficulties of the province that need to be addressed.

To continue to attract and retain investors, Bac Ninh proactively approaches and grasps investors’ problems and difficulties to thoroughly handle them and not let them persist for a long time. It will continue to reduce costs, support production and business activities, and promote growth drivers. The province will prepare the necessary conditions to welcome a new wave of investment, such as clean premises and completed infrastructure, energy, and skilled labor supply. Bac Ninh will also enhance the capacity of domestic enterprises to participate in the value chain.

In addition, the province is researching breakthrough solutions to improve the capacity of domestic enterprises and participate more deeply in the global production chain. Establishing a stable and predictable business environment is one of the important contents for the locality to continue attracting FDI capital in the coming time.

By Anh Quynh, Vietnam Business Forum