Binh Duong Province Sees Fast Development by Investment

Binh Duong Province Sees Fast Development by Investment

Industrial development is crucial for Binh Duong’s economy. 8 years after its re-establishment, the province has developed its industry most vigorously in both quantity and quality.

Breakthrough and growth

Like other provinces, the province started from a low-based economy with annual growth rate of 3.2 per cent. In 1975-1985, industry made up only 9.6 per cent of the economic structure. The main products were ceramics and lacquer. State-owned enterprises were inefficient, other economic sectors were underdeveloped. In the period of transformation (1986-1990) from a centrally planned to market economy, many enterprises could not stand the test and disbanded. However, with the encouragement of the province, hundreds of private enterprises came into being. Industrial production maintained a growth rate of 8 per cent a year and in 1990 accounted for 13 per cent of the economic structure.

Between 1990 and 1995, Binh Duong attracted investment from Ho Chi Minh City; and foreign investors started coming to the province. The correct decision was to develop industry in the Southern part of the province with favourable terrain and location. Industrial zones have been established and infrastructure developed attracting important resources from domestic and foreign investors. Regarding administrative reform, the province issued Decision 1965/QD-UB (1995) accelerating the granting of investment licenses. The efforts have increased the industrial growth rate to 35 per cent a year and industrial value of VND1,000 billion, ranking 6^th in Vietnam.

Since 1996, Binh Duong has continued to develop industry to make the best use of its advantages in resources and location. The province put practical programmes in place and solutions to assist enterprises increasing the industrial value to VND32,044 billion in 1994, making up 63.3 per cent of the economic structure.

Advantages and potentials

Binh Duong is also rich in resources for industrial development such as agricultural produce and minerals. The province is also close to Ho Chi Minh City and other provinces most favourable for consumption and export. Therefore the province can develop processing industry, textile and garment, footwear, wooden furniture and mechanics.  Meanwhile, the traditional ceramic industry could also increase several times in value. Binh Duong ceramic with new technology has been developed meeting the export demand in volume, quality and style. In the coming years, the province will develop electronic, mechanic and other hi-tech industries and attract investment to increase added value of the products.

Binh Duong’s experience

The experiences of Binh Duong can be applied in other provinces. The interests of the investors are secured by law and investment policy. The constraints of enterprises are timely removed by related authorities. Infrastructure is always built ahead of projects and enterprises are facilitated in their activities. In particular, the communication between enterprises and local authorities is maintained to ensure the smooth operation of investment projects. 

• Ngoc Vu