To take full advantage of regional linkages, Binh Duong has implemented transport infrastructure projects to create a premise for development. With limited resources allocated annually by the government, Binh Duong proposed and was approved by the Japan International Cooperation Agency (JICA) for ODA loans to invest in a project to improve the local public transport infrastructure with a loan of JPY 7.42 billion (equivalent to more than VND 1.33 trillion).
Supporting development
On May 21, Prime Minister Pham Minh Chinh and Prime Minister Kishida Fumio witnessed the exchange of documents to sign three ODA cooperation projects with a total value of JPY 61 billion, equivalent to US$ 500 million in Japan’s Hiroshima, including the new generation ODA budget support program for post-Covid-19 socio-economic recovery and development, the project to improve public transport infrastructure in Binh Duong province, the project to improve agricultural development infrastructure in Lam Dong province.
Thus, Binh Duong province’s public transport infrastructure improvement project is the next project of the province to receive ODA support from Japan. The project has been approved by the Prime Minister with investment policy and provincial People's Committee has approved the investment project in accordance with the law of Vietnam. The project has total investment of JPY 11.43 billion (equivalent to more than VND 2.05 trillion). Of these, JICA loan is JPY 7.42 billion (equivalent to more than VND1.33 trillion) and the corresponding provincial capital is JPY4.01 billion (equivalent to VND 723 billion). The corresponding capital is arranged by Binh Duong province to secure the progress of the project and the loan. The project is expected to be built in 2025 and completed by the end of 2026.
Over the past time, with ODA capital from Japan, Binh Duong has completed 2 projects to improve the Southern Binh Duong water environment in phases 1 and 2; solved problems on domestic water treatment and drainage in Thu Dau Mot and Thuan An cities. Total ODA funded by JICA was about JPY 27.73 billion (equivalent to more than VND 5.75 trillion).
Mai Hung Dung, Member of provincial Party Standing Committee, Permanent Vice-Chairman of provincial People's Committee said that sustainable development is the goal set out by Binh Duong. However, with limited resources allocated by the government every year, Binh Duong province proposed and was approved by JICA for an ODA loan to invest in a rapid bus route under the local public transport infrastructure improvement project. In addition, to facilitate smooth logistics development from industrial parks to airports and seaports, develop urban projects in Binh Duong new city and TOD projects on the My Phuoc - Tan Van expressway researched and developed by Tokyu Corporation, the province is also proposing the Japanese Government and JICA to assist ODA capital with 2 projects, including the project on construction of the province’s urban railway No. 1 connecting the urban railway No. 1 in Ho Chi Minh city from Suoi Tien terminus to Binh Duong new city and the Bau Bang - Thi Vai - Cai Mep industrial railway with a total length of 127.45km.
Being active in investment attraction
With the advantage of a province with strong development in industrial manufacture, Binh Duong is the best choice of foreign investors, including Japan when investing in Vietnam. Among 65 countries and territories investing in Binh Duong, Japan currently ranks second with 344 projects with total capital of nearly US$ 5.9 billion, accounting for 15% of total investment capital in the province. On average, each Japanese project is capitalized at over US$ 20 million. This is the highest average number among countries investing in Binh Duong now.
Projects with Japanese FDI in Binh Duong mainly focus on manufacture of electronic components, circuits and electronic chips; manufacture, assembly of automobiles, manufacture of iron and steel; auxiliary industries, trade-services...Some large corporations making invesment in the province are Panasonic, Sharp, Toshiba, Foster, Tokyu, Fujikura, Aeon Mall... Especially, the province has promoted cooperation with Tokyu Group in terms of urban and transportation infrastructure development; cooperated with corporations of Aeon, Mitsubishi, Toshiba, Foster on commercial development, the development of the automobile industry, the production of electronic components…All these projects have contributed to promoting the local socio-economic development.
According to Hashimoto, Chairman of Sharp Corporation, in the coming time, Sharp will further expand investment and build more large-scale factories, orienting to develop high-tech and advanced products such as manufacturing, processing electronic products, high-tech components, smart phones, household electrical appliances, health products...He has assessed Binh Duong as a locality with an attractive investment environment in line with Sharp's criteria. As of now, the group has developed 2 production factories in Vietnam - Singapore Industrial Park (VSIP I) and expanded VSIP II.
Binh Duong is still a land with many promises to bring development to economic groups and businesses at home and abroad, especially when the province's infrastructure system is invested continuously and completed. In addition, the province's open and transparent mechanisms and policies, especially on reforming administrative procedures and improving the local investment climate, have attracted the interest of investors.
Reported by Ngoc Thanh-Translated by Kim Tin
