Binh Duong Province: Reforming for More Investment Flows

After 10 years of attracting foreign investments, Binh Duong is leading the country in this field. Apart from Vietnam-Singapore industrial zone (IZ), the province has 12 IZs with a total area of 1,936 hectares and investment capital of over VND2,200 billion from 25 countries and territories.

 

According to Binh Duong IZ Management Board, the province has 940 FDI projects in operation and capitalised at US$4.5 billion. Taiwan leads with 141 projects and over US$758 million in investment capital. Most of investment projects are small, with the exception of Uni President Co., Ltd (US$151 million) and Kaiser Vietnam Co., Ltd (US$40 million). The projects focus on food and drink processing (6.14 per cent in projects and 17.7 per cent in capital), garments (10.92 and 11.37 per cent respectively). In addition to the 3,200 Vietnamese investment projects, the province has 1,008 FDI projects with a total investment capital of US$5 billion. Binh Duong has established 16 IZs with a total area of 3,275 hectares, a industrial-service complex of 4,196 hectares.

 

Due to foreign investment, Binh Duong GDP grows by 15.5 per cent a year on average. It accounts for 48 per cent of investment capital and 42 per cent in GDP , increases industrial value by 36.4 per cent (69 per cent of Binh Duong industrial value) and contributes 16 per cent of the revenue of the province (VND694 billion in 2004). IZs in the province have created over 77,000 jobs with average income of VND800,000 a month. FDI has also developed banking, telecommunication, housing and other services in the province.

 

Reviewing 10 years of development, the province still sees certain weaknesses: investments in small size, high expenses in power and water supply, income tax and telecommunication causing high production cost and low competitiveness, unskilled labour and inefficient use of land.

 

In the strategy until 2010, the province will improve the infrastructure of the IZs and the living conditions of the workers, accelerate administrative reform and the training of human resources, listen to investors and find solutions to their problems.