Despite navigating through the complexities of the global economic landscape, Bac Ninh province remains an attractive destination for foreign investors, with a particular emphasis on Foreign Direct Investment (FDI). This sector continues to shine brightly in the province's socioeconomic panorama, with a substantial contribution from established Asian investors and traditional partners, including Singapore, Japan, South Korea, and Taiwan (China).
Samsung Vietnam is a catalyst for the economic development of Bac Ninh province
Leading the way in FDI attraction
According to data from the Bac Ninh Statistics Office, the province has seen a remarkable influx of FDI, with 264 new projects attracted in the year to September 20. These projects, amounting to US$860.9 million, reflect a substantial increase from the corresponding period in 2022. Additionally, the province has licensed 97 projects for adjustments to their investment bases, signifying a dynamic and evolving investment landscape.
As of September 2023, Bac Ninh boasts 2,040 valid FDI projects, with a total registered investment capital of US$24.62 billion. The province continues to attract major global corporations, including Samsung, Canon, Amkor Company, VSIP, and Geotek. Notably, processing and manufacturing industries constitute a dominant share, accounting for 70% of projects and an impressive 85% of total FDI capital (US$20 billion).
While maintaining its appeal to strategic investors from South Korea and Japan, Bac Ninh has experienced a surge in Chinese investment in 2023. China's ongoing economic restructuring and implementation of a "dual circular economy" strategy have opened new avenues for Bac Ninh's industrial parks to capture fresh capital flows.
Renowned entities like Goertek Group, with a US$280 million project in Nam Son-Hap Linh Industrial Park, and Victory Giant Technology Group, choosing VSIP Bac Ninh II Industrial Park for its factory, underscore the province's continued magnetism for high-profile investments. Dai Long Group and Fengchen Port Guitie Urban Lounge Investment Co., Ltd (China) are promoting a warehouse facility for e-commerce and an electric motorbike assembling factory.
FDI has significantly contributed to local socioeconomic development, with the sector accounting for 48.48% of investment capital and 34.4% of State budget revenue in 2022.
The FDI sector plays a pivotal role, representing over 99% of the province's exports and more than 12% of the country's total exports. Furthermore, it employs over 40% of the province's labor force, contributing significantly to industrial restructuring and overall socioeconomic development.
Priorities for modern eco-friendly technology projects
Bac Ninh's favorable and open business environment, coupled with strategic advantages in infrastructure and human resources, positions the province as an ideal investment destination. To achieve its vision of becoming a centrally run city, Bac Ninh will refine its long-term FDI attraction strategy.
The province's criteria for project prioritization include factors such as efficiency in labor and land utilization, high investment capital, economic performance, advanced technology, availability of resources, and adherence to sustainability principles. Bac Ninh will focus on attracting high-quality foreign investment, particularly in areas such as urban infrastructure development, smart city construction, modern eco-friendly technology, information technology, research and development, tourism, financial services, banking, human resource training, high-tech agriculture, and organic food.
Bac Ninh emphasizes collaboration with current partner markets like South Korea, Japan, Singapore, Taiwan (China), and China. The province is committed to strengthening relationships with strategic partners in developed countries and attracting domestic private firms with financial capacity and technological potential.
Notably, the province aims to channel investment into sector-specific locations, including the electronic technology valley in Yen Phong district, the industrial corridor in Que Vo district, and the IT and high technology center in Tien Du district. These strategic moves aim to foster the development of electronic component manufacturing, high-tech manufacturing, semiconductors, and microchips.
Bac Ninh has meticulously crafted investment attraction mechanisms and policies, completed provincial planning and related plans, prepared human resources and infrastructure, improved the investment environment, and sharpened competitiveness to seamlessly ride the waves of new investment opportunities.
By Khoi Nguyen, Vietnam Business Forum