Binh Duong FDI Attraction Model

Over the years, Binh Duong has become a model in attracting foreign investment, driven by its “rolling the red carpet” policies. The province has adopted a range of solutions, such as accelerating public investment disbursement, launching diverse business support programs, and advancing digital transformation. To learn more about this, Vietnam Business Forum conducted an interview with Mr. Nguyen Thanh Toan, Director of Binh Duong Department of Finance.

With the political system focused on accelerating public investment disbursement, how is the planning and investment sector supporting this effort?

Binh Duong defines that accelerating public investment disbursement plays a huge role in economic, political and social development, an important springboard for infrastructure development that stimulates production and creates growth momentum, and a “seeding capital” to draw investment capital to unleash great potential for socioeconomic development. The province has also aimed to use public investment capital to strengthen regional connectivity, especially with key economic regions in the south, support modern sustainable industrial parks and new urban areas, ensure social security, improve the quality of life for people and bolster industrialized and modernized economic restructuring.

To accelerate public investment disbursement, the planning and investment sector advised the Provincial People's Committee to issue Plan 6399/KH-UBND, launching a 50-day emulation campaign for 2024. It closely coordinated with agencies to mobilize resources, expedite key projects, monitor progress, and promptly report challenges to ensure disbursement aligns with the resolutions of the Provincial Party Committee, the Provincial People's Council and the Provincial People's Committee.

What do you think about direct investment attraction and project implementation in the province in recent years?

In recent years, despite being affected by the CCOVID-19 pandemic and world economic situations, Binh Duong has always been one of the largest recipients of foreign investment capital. As of December 31, 2024, the province ranked second in foreign investment capital in the country, with 4,399 projects and nearly US$42.5 billion, accounting for more than 8.5% of the total foreign investment capital in the country. Specifically, the processing and manufacturing sector is the most invested, with roughly US$31.8 billion, accounting for 74.9% of the total registered investment capital. On February 1, 2025, at the groundbreaking ceremony of Ho Chi Minh City - Thu Dau Mot - Chon Thanh Expressway running through Binh Duong province and the investment certificate awarding ceremony, the province handed the investment license of nearly VND8,500 billion and investment certificates to typical projects with more than US$1.2 billion, including projects invested by the Investment and Industrial Development Corporation - JSC, Cheng Loong Binh Duong Paper Company Limited and Vietnam - Singapore Industrial Park Joint Venture Company Limited.

Mr. Nguyen Thanh Toan at a working session Sung Hyun VINA JSC, February 13, 2025

In 2019-2021, Binh Duong centered on developing traditional light industry, garment, consumer electronics and mechanical engineering projects. However, since 2021, the province has shifted to high-tech and logistics projects, especially in high-tech manufacturing. In general, the locality has advocated changed FDI attraction from traditional manufacturing projects to high-tech projects in line with its approach to selective investment attraction and its priority for high-tech projects that are less labor-intensive and more environmentally friendly. From now to 2030, Binh Duong will coordinate to build and complete inter-regional infrastructure projects and build and develop regional urban - industrial - service complex centers.

Binh Duong's 2021-2030 plan with a vision to 2050 demands quality investment and greener growth. What solutions is the sector advising and implementing?

In response to sustainable and eco-friendly socioeconomic development requirements, the planning and investment sector has actively advised and launched many practical solutions. Given four announced key tasks, it is necessary to focus on selectively attracting investment fund and prioritizing high-quality projects with advanced, clean and environmentally friendly technologies, supporting industries and large-scale projects linked with urban infrastructure development, services and logistics. The sector has proactively researched and proposed solutions and recommendations to perfect and synchronize the legal system on investment and businesses to facilitate investors to carry out their projects. At the same time, it has fostered digital transformation to support businesses to access and implement their projects quickly and effectively. It also established a working group in charge of supporting companies to tackle their obstacles to maintain information channels and promptly grasp their business situations and difficulties to enable to achieve the best business performance. Furthermore, the sector has boosted investment promotion through annual investment promotion programs.

Mr. Nguyen Thanh Toan receives and holds a working session with a delegation of Chinese enterprises

What are your perspectives on the implementation and effectiveness of business support plans and projects in Binh Duong at present?

Binh Duong has effectively carried out business support plans and projects, especially for small and medium-sized enterprises (SMEs). The province launched many important plans, demonstrating its interest and commitment to creating a favorable business environment. Support programs are very diverse, including technology support, information, consulting, human resource development, business household conversion to companies, creative startups, value chain engagement, access to credit, interest rates and legal support.

Nonetheless, the effectiveness of support programs remains weak due to some bottlenecks, including low awareness of SME support among some officials at all levels and sectors; limited ability of companies to access support policies due to insufficient information and complicated procedures, limited funding sources for support programs that affects the scale and scope of support. The large workload notwithstanding limited staff causes a civil servant to take on many tasks, which result in work inefficiency.

To be worthily deserved the trust and expectations of investors, the province always strives to create breakthroughs with appropriate steps and effectively utilizes its geoeconomic advantages, natural resources and human resources. In the coming time, Binh Duong will further improve the investment environment, gradually speed up digital transformation to build digital government, digital economy and digital society and construct a new ecosystem to foster sustainable development and become a centrally run city by 2030.

Thank you so much!

By Hoang Lam, Vietnam Business Forum