Binh Duong – 26 Years of Effective FDI Attraction

FDI attraction of the country in the last 10 months has been declining whereas that of Binh Duong has increased dramatically, in terms of both quality and quantity. Since early this year, Binh Duong province has welcome several world's leading corporations promoting investment and development. As of 15th October, 2012, Binh Duong had attracted 2,093 valid FDI projects with total registered capital of over US$18 billion from 36 countries and territories. Particularly, in industrial sector, there are 2,060 projects with the total registered capital of US$10.7 billion, accounting for 92.75 percent of the total projects and 71.6 percent of the total registered capital of Binh Duong province in 25 years. According to the People's Committee of Binh Duong, the majority of FDI enterprises in the province has been well observing the provisions of Vietnamese law on investment, tax and environment. Through 25 years of attracting FDI, Binh Duong province has developed a lot of new industrial sectors such as chemical, automobile, motorcycle, steel, etc. and strengthened the capacity of those sectors, contributing to creating jobs for workers locally and outside the province as well as to the development of socio-economic development of the province.

 

With these impressive figures above, Binh Duong currently ranks number four nationwide in attracting FDI, only following Ho Chi Minh City, Hanoi and Dong Nai. This is such a proud achievement crystallized from the tremendous efforts of the province to maximize the factors of natural resources, opportunities and human factor. Binh Duong was originally an agricultural province with weak infrastructure, but thanks to the efforts of the Party and the whole people, Binh Duong has become one of the leading provinces in attracting FDI in the country.

 

Evaluating the success in attracting FDI of Binh Duong, Director of the Foreign Investment Agency (Ministry of Planning and Investment), Mr Do Nhat Hoang, said: "Despite the volatility of the domestic and global economy, FDI inflows of Binh Duong remains high. This is such an impressive result that not every province can achieve. This achievement reflects the dynamicity of the province, the ability to call for and retain competent investors. Nowadays, investors before making investment decisions have to get to know all about the provinces, make comparison among them and then select the most appropriate place to put investment in. The number of 2,093 projects in the present time also partially confirmed the attractiveness of the investment environment in Binh Duong to investors. "

The reasons of the remarkable success in attracting FDI of Binh Duong today may be effective administrative reforms including shortening the time of issuing permission and land lease adopted by the province’s authority who has always been actively creating favorable conditions for enterprises in carrying out production and business activities. In particular, the province has been focusing on investment in infrastructure and industrial zones. Mr Tran Van Lieu, Head of the Management Board of Binh Duong Industrial Zones said that so far, the province has 28 industrial parks occupying an area of ​​9,093 hectares including 26 activity zones which are well planned on infrastructure and favorable traffic connections. Especially large industrial parks like My Phuoc 1 and 2, Vietnam - Singapore are equipped with the most modern infrastructure. Besides, Binh Duong also promotes infrastructure development and investment in traffic associated with the development of the provinces and cities in the region through inter-provincial and inter-regional projects including Ring 3, Ring 4. The province also creates many conditions to utilize cost savings for investors, prominent is the My Phuoc - Tan Van road with the total investment capital of over VND3,500 billion to put into operation next year. This will be the road connecting localities in the region and opening new opportunities for attracting FDI.

 

Continuing to promote the achievements obtained in recent years, Binh Duong has set a target from now to 2020 of attracting FDI in the province of about US$1 to 1.2 billion per year and focusing on attracting from industrialized countries such as the United States, Japan, EU, etc. To realize those goals, Binh Duong province has gradually improved the quality of FDI projects and increased its position as one of the top attractions of FDI inflows. Director of the Department of Planning and Investment of Binh Duong province, Mr Mai Hung Dung said the province will focus on constructing and managing the planning of industrial parks, industrial clusters and planning of land use planning as a basis for calling for investment. The authority of the province will also have to strengthen investment promotion, improve investment environment, and implement the reform of administrative procedures in attracting investment. Binh Duong also has policies granting incentives to each key group and partners. In addition, the province will focus on improving provincial competitiveness, continue to improve the business and investment environment, facilitate business activities in accordance with the commitments and provisions of the law to maintain the ranking of one of the leading provinces in attracting FDI.