Thanks to having obvious development strategies and methodical investment, province-based industrial parks (Ips) and industrial compounds (Ics) upheld their strong points and were attractive to investors over the past time. For that reason, foreign direct investment (FDI) capital flowing into them has constantly surged and become a great resource for the local socio-economic development process.
FDI destination
The whole province is now home to 28 Ips of 9,412 hectares with the land tenancy rate of 65% and 8 Ics of 600 hectares with the land tenancy rate of 45%. The total investment capital for infrastructure of province-based Ips and Ics during the 2011-2015 period reached 76% of total capital approved. In the first half of 2016 alone, the province spent more than VND750billion on building technical infrastructure in Ips and Ics.
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Production at My Phuoc IP-based Kaiser Furniture Co. in Ben Cat town
Thanks to having Ips and Ics with synchronous and methodical investment, Binh Duong has become an attractive destination for investors. The province in the first half of 2016 absorbed nearly US$1.1billion in FDI capital, including US$730million from 113 new projects and US$337million from 64 existing ones. Thus, the province has so far lured 2,700 valid FDI projects with a total registered capital of US$24.7billion.
Also in the first half of the year, province-based Ips and Ics had additional 225 hectares of land leased and absorbed another US$949million in FDI capital. Enterprises at these Ips and Ics reached US$6billion in export turnover and US$8.7billion in revenue.
Ngo Kien Hoanh, Head of province-based Taiwan Business Association said that he and Taiwanese enterprises have felt secure when making investment in Binh Duong where Ips have synchronous and methodical investment. For that reason, FDI capital flow from Taiwan to Binh Duong constantly increased over the past time. Friendliness and flexibility of the local government as well as locals have also won faith of foreign investors.
In the point of view of an investor, Mitsuhiro Mori, Chairman of HCM city-based Japan Business Association said that Binh Duong’s efforts in infrastructure investment is a necessary step at foreign investors’ great expectations. Upon this, the province will continue being an attractive destination for Japanese investors, especially ones operating in hi-tech, service and urban fields…
Further improving investment climate
Over the past time, Binh Duong quickly implemented the planning adjustment of Ips under the PM’s Official Dispatch No.173/TTg-KTN dated Jan.28, 2016. Accordingly, till 2020, the province will be home to 33 Ips with 14,700 hectares in total. The province will also constantly perfect infrastructure of Ips and Ics in order to enhance investors’ satisfactory index.
Provincial industrial-service-urban complex is seen as a highlight of the locality in Ips and Ics development. Noticeably, Binh Duong new city is not only an ideal destination for thousands of investors at home and abroad, but also oriented as a place to absorb intellectuals and develop technologies, playing an important role in the local development process.
The initial success in building the complex has opened up prospects for the province to further foster multi-sector Ips in association with the formation of civilized and modern urban-service zones in the coming time. The province will continue perfecting infrastructure of Ips and Ics towards developing centralized Ips and Ics in the northern region as planned. In addition, the province will devise plans to change the use of some Ips in line with the new context in order to promote the local urban-service development. The province will mobilize all favorable conditions after free trade agreements, especially the Trans-Pacific Strategic Economic Partnership Agreement (TPP) between Vietnam and other countries signed to absorb more investors.
At a recent meeting with foreign investors, Tran Thanh Liem, Vice-Secretary of provincial Party Committee cum Chairman of provincial People’s Committee affirmed that the province will further implement the Government’s policy on improving the investment climate, enhancing competiveness and boosting support for enterprises; opportunely deal with enterprises’ queries for better production and business; mobilize all resources to perfect socio-economic infrastructure systems; especially expand Ips to create clean land fund for investors…
Reported by Khanh Vinh-Translated by K.T
