Binh Duong Succeeds in Investment Attraction

Binh Duong Succeeds in Investment Attraction

Success in attracting foreign investment capital has become the first and most important success in the development of Binh Duong province since it was re-founded in 1997. Resources have played an important role in Binh Duong’s economic restructuring, helping create more jobs and higher incomes for local workers and forming a busy economic sector.

Effective foreign investment capital

According to statistics from Binh Duong People’s Committee, foreign investment accounted for 71 per cent of total investment capital of Binh Duong in the 1997-2001 period. This figure was put at around 24 per cent for the whole country. In particular in 2000, when other countries in the region were still suffering the heavy impact of the Asian financial crisis, Binh Duong was a leader in Vietnam in terms of foreign investment attraction with 110 projects, capitalised at USUS$330 million, equal to 17.3 per cent of total foreign investment capital of Vietnam. By 2000, Binh Duong had attracted 327 projects, capitalised at USUS$2.884 billion. Since 2001, Binh Duong has always been in the top five provinces and cities in attracting foreign investment capital. By February 2005, the province had attracted a total of 919 projects, valued at USUS$4.333 billion. In 11 months in 2004 alone, Binh Duong attracted 130 new projects and had 110 projects increasing their capital with a total of USUS$657.5 million, up by 43 per cent against 2003. With such a high growth rate, Binh Duong has become an attractive place for foreign investors. The province can maintain its high growth in foreign investment attraction thanks to its unceasing perfection of infrastructure facilities and the building of more industrial parks to welcome foreign investors. Furthermore, the success of foreign investors in Binh Duong has convinced potential investors. Successful investors have acted as an advertisement channel about the dynamic province of Binh Duong with many investment and business opportunities. They have expanded their production activities after their initial successes, increasing investment capital to a volume, similar to that of new projects.

In 2004, industrial production value of the foreign-invested sector increased by 44.2 per cent against that of 2003, and accounted for 68.2 per cent of the province’s total industrial production value. Now, foreign investment has been poured into the fields of great export potential. Textile and garment, footwear and processing industries attract most investment capital. Other industries, such as mechanics, electronics, information technology, automobile and consumer goods, have attracted many foreign-invested projects. Over the past few years, these fields have maintained a high growth rate of 40 per cent of silk, 16.6 per cent of medicines, 26 per cent of accumulators, and 36.8 per cent of bicycles. This has driven Binh Duong’s high growth rate of over 30 per cent in export turnover. The foreign-invested sector’s export turnover of USUS$1.35 billion accounted for 67 per cent of the province’s total export value. This figure was 50.4 per cent higher than that of 2003. Apart from exports, some foreign-invested projects concentrate on the domestic market with products for production and consumption. These support industries that have met local manufacturers, reducing the pressure of imported materials. Some consumer goods, including milk and processed food, have high quality and low prices.

Most foreign-invested projects in Binh Duong have been developed by Asian investors, mainly from Taiwan, the Republic of Korea, Singapore, Japan, Hong Kong and Thailand. The province has also attracted projects from the US, France and Portugal. Projects have a small size in the 100 per cent foreign-invested form. A survey in early 2002 showed that Binh Duong had the highest rate of successful projects. The number of successful, operational projects was put at 60 per cent. The figure was put at 33 per cent for projects which are under construction and six per cent for projects which are yet to be implemented or whose licences had been withdrawn. The rate of successful projects was put at 29 per cent for Ho Chi Minh City and Dong Nai, and 15 per cent for Ba Ria-Vung Tau.

Successful domestic projects

With an open investment environment, Binh Duong has become an attractive place for domestic investors. In 1997, Binh Duong had 882 enterprises in all economic sectors. In 2004, the province had 2,730 enterprises with a total registered capital of VND 11,400 billion. In the same year, Binh Duong attracted 618 new projects and 212 enterprises increased their capital. Most enterprises which have been established in Binh Duong since 1997 are private enterprises developed by investors from Ho Chi Minh City and localities nearby.

Investment inflow has driven the development of Binh Duong, turning it into a wealthy province with many business opportunities for all.

• Thuy Tien