Binh Duong Developing Infrastructure to Attract More Investment

5:25:54 PM | 4/1/2012

By utilising local potential and advantages, Binh Duong province has attained numerous achievements in attracting investment capital, especially foreign direct investment (FDI). The locality now ranks fifth in FDI attraction in terms of value. “To strengthen the appeal of the investment environment to catch and take advantage of opportunities, we will focus on improving infrastructure to attract more investment capital in the coming time. We are committed to creating the most favourable conditions in administrative procedure, site clearance and investment preference policy,” affirmed Mr Huynh Van Trai, Director of Binh Duong Department of Planning and Investment in an interview with Vietnam Business Forum. Hoang Lam reports.
Could you briefly describe the outstanding achievements in FDI attraction of Binh Duong province in recent years?
FDI attraction in Binh Duong province is progressive in recent years. The investment environment is improved. Many fields with local advantage like real estate, automobile, motorcycle, electronics and medical equipment have caught the interest of investors. The number of investor delegations to the province has significantly increased. In only five years (2005-2010), Binh Duong province managed to license 846 FDI projects worth US$7.3 billion. In couple with the sharp rise in the number of projects, FDI attraction has also increased in quality and diversity of industries. In 2011, despite global economic slowdown, Binh Duong still attracted a lot of foreign investors. Specifically, it managed to attract more than US$889 million in the year, including 76 fresh projects with total registered capital of US$408.5 million and 118 projects allowed to hike their investment capital by US$480.5 million. To date, the province has 2,054 projects with a total investment capital of US$14.576 billion.
FDI capital plays a very important role in economic development and industrial production expansion. Moreover, foreign investors are increasing investment into highly competitive hi-tech industries. This trend matches the sustainable industry development planning and orientation of Binh Duong province. Successful FDI attraction is the certain outcome of a long period of tapping local potential and advantages in addition to streamlining administrative procedures and improving the investment environment. Hence, the province has become a popular destination for foreign investors.
Binh Duong is now considered a favoured destination for Japanese companies. Could you tell more about this?
In 2011, Binh Duong province met with many business delegations which came to explore the investment climate and prepare investment. Well-known companies included Kiyo Kensetsu Kikai, Aeon and Tokyu. It is great to see the growing interest of Japanese investors in Binh Duong province. This demonstrates that the dynamic investment environment of the province is a point of attraction for Japanese companies and foreign investors in general to bring their projects here.
What will Binh Duong province do in the coming time to continue to be an attractive place to invest?
We have focused on promoting infrastructure development, human resource training development and traffic system development to better serve enterprises. The VND3,500 billion (US$170 million) My Phuoc Tan Van Road is a typical ongoing project. This artery links major traffic hubs like seaports and airports. This project will open up new opportunities for sustainable and continuous economic development in Binh Duong province. Mien Dong International University, invested by Becamex IDC Company, will supply high-quality human resources for enterprises in the province and the region. The near-finished project covers an area of 26.4 ha and requires an investment capital of VND1,700 billion. Besides, the province has built international hospitals, subways and urban areas adjacent to industrial zones. All these projects will help the province attract more foreign investors.
In order to continue its leading role in the southern key economic zone, what solutions will Binh Duong adopt?
To strengthen domestic and international investment flows into Binh Duong province, we will focus on the following groups of solutions: planning, administrative procedure reform, and infrastructure investment. With respect to planning, the province will accelerate the progress of construction and ratification of planning in addition to supplementing and adjusting existing inappropriate ones.
With regard to administrative procedures, we will concentrate on promoting administrative reform, strengthening publicity and transparency of investment registration policies and procedures, and effectively implementing land compensation, site clearance and resettlement construction. Besides, we will mobilise domestic and foreign resources to improve the quality of training establishments and enhance the quality of human resources to better serve new investment projects. Especially, we will muster resources to boost infrastructure construction and energy sources for production.