Binh Duong: Leading Destination to FDI Inflows

2:45:55 PM | 14/11/2022

Binh Duong province was the second largest recipient of foreign direct investment (FDI) in the country (only after Ho Chi Minh City) with a total registered value of US$39.6 billion, accounting for 9.2% of the country’s gross total.

According to the Binh Duong Department of Planning and Investment, FDI inflows totaled US$2.527 billion in the first six months of 2022, up 80% from a year earlier. Of the sum, the province licensed 30 new projects with US$1.786 billion, equal to 407% of the registered value of the same period of 2021; allowed 12 existing projects to add US$16.6 million to their investment base; and permitted 82 equity purchase deals worth US$724.2 million, equal to 382% of the value a year earlier.

By place, industrial parks drew 25 new investment projects and saw 23 existing projects to change their investment fund, tallying US$1.774 billion, up 35% year on year and accounting for 70% of total FDI in the province. Other places had five new projects, witnessed 12 existing projects to change their capital and allowed 59 equity purchase deals with a total registered value of US$753.2 million, equal to 829% of the value in 2020 and equal to 30% of the total FDI fund in the province.

By sector, the processing and manufacturing industry continued to be invested most by foreign investors, with 22 new projects, 10 existing capital-added projects and 43 equity purchase deals for US$1.545 billion, accounting for 61.2% of total registered FDI funds. Real estate ranked second with US$964 million, accounting for 38.1%. Wholesale and retail sector and automotive and motorcycle repairing came third with US$12.5 million, accounting for 0.5%.

By investment partner, Denmark was the largest out of 18 countries and territories registering to invest in Binh Duong from January to June. The country invested US$1.318 billion (accounting for 52.2%), followed by the Netherlands with US$608 million (24.1%) and China with US$257 million (10.2%). Other big investors included Japan, Taiwan and Hong Kong.

Binh Duong currently ranks second in FDI value in the country (only after Ho Chi Minh City), attracting 4,053 FDI projects with a combined registered capital of more than US$39.55 billion, accounting for more than 9.3% of the country’s total FDI fund. On average, a project was invested with US$9.8 million. The processing and manufacturing sector was the largest recipient, with 3,508 new projects with US$29 billion (accounting for 73.3% of the total), followed by runner-up real estate with US$7.36 billion (18.6%) and third-placed construction with US$1.21 billion (3.1%).

As many as 65 countries and territories are investing in Binh Duong. The top 10 biggest investors (Japan, Taiwan, Singapore, Samoa, South Korea, B.V.I, Hong Kong, Cayman Islands, China and Denmark) invested more than US$32.5 billion (accounting for more than 82.1% of the total). Taiwan was the largest foreign investor with 859 projects and more than US$6.27 billion (accounting for 26% of projects and 19% of value). Japan ranked second with 333 projects and US$5.86 billion (10% of projects and 18% of the capital). Singapore ranked third with 277 projects and US$5.4 billion (8% of projects and 17% of the capital.)

The FDI value has continuously risen over the years (2016: US$25.987 billion; 2017: US$28.577 billion; 2018: US$32.308 billion; 2019: US$34.336 billion; 2020: US$35.502 billion; 2021: US$37.735 billion; and H1 2022: US$39.556 billion).

In the third quarter of 2022, Binh Duong province drew US$2.62 billion of FDI funds. Specifically, the province licensed 57 new projects with US$1.86 billion; allowed 18 existing projects to add US$20 million of investment capital; and permitted 136 equity purchase deals for over US$734.4 million.

Hoang Phong (Vietnam Business Forum)