In 2017, Becamex IDC and Warburg Pincus Financial Group (USA) signed a Memorandum of Understanding (MOU) for strategic cooperation. The goal of the cooperation was to develop logistic warehouses and ready-built factories according to international standards to contribute to the development of logistic services in Binh Duong. This cooperation would be strengthened by leaders of the province and the two companies, and would contribute to the development of Binh Duong logistic industry.
Becamex IDC and Warburg Pincus sign a memorandum of understanding.
Developing logistics according to international standards
In 2017, Chairman of the provincial People's Committee Tran Thanh Liem received and worked with leaders of Warburg Pincus Group. In witness of provincial leaders, Warburg Pincus and Becamex IDC leaders signed a strategic cooperation memorandum. According to the memorandum of understanding between the two parties, in Binh Duong, Warburg Pincus cooperated with Bcecamex IDC in two contents: Establish joint venture and strategic cooperation. Accordingly, the two sides will complete the steps to establish a joint venture company with a total initial investment of $200 million, striving to develop to $1-2 billion in the next 4-5 years. The goal of the joint venture is to develop logistic warehouses and prefabricated factories according to international standards to contribute to the development of logistic services in Binh Duong and other cities.
Warburg Pincus Financial Group is the world's leading private equity fund that manages over $44 billion in assets and focuses on developing companies. Warburg Pincus invests in various fields, especially the global logistics. Timothy Geithner, Chairman of Warburg Pincus Group, said: "Vietnam in general and Binh Duong in particular show us good opportunities to invest in many areas. Warburg Pincus is very confident about the cooperation between the group and Becamex IDC. I believe this would be a long-term, comprehensive and growing cooperation, especially in the logistic service industry in Binh Duong. "
Nguyen Van Hung, Chairman and CEO of Becamex IDC, said that Binh Duong had complete industrial infrastructure, transport infrastructure and good services, especially urban infrastructure and logistics was developing strongly, so there was great potential for development. With the cooperation between Becamex IDC and Warburg Pincus, he believed that it would create new motivations, new values, create new era to economic development of Binh Duong province in particular and southern key economic region in general, as well as meet expectations, requirements set by provincial leaders.
The cooperation between Becamex IDC and Warburg Pincus promised to create favorable conditions for Binh Duong's logistics development. Currently, Binh Duong province has many potential and advantages to develop logistic services. Located in the southern key economic region, Binh Duong is one of the fast-growing, dynamic and economic provinces in the region. This is also a place to access modern technology and large investment capital from home and abroad. Due to its favorable geographic location adjacent to Ho Chi Minh City, Dong Nai, Binh Phuoc, and Tay Ninh, Binh Duong has many advantages in associating with other provinces in the South as well as other countries in the world through important regional gateways such as Tan Son Nhat International Airport, Long Thanh, Cai Mep, Cat Lai port and Mekong Delta provinces.
Especially, by the end of 2016, Binh Duong basically completed and put into use a number of important roads for economic development, such as Pham Ngoc Thach, DT747, DT744, My Phuoc - Tan Van; At the same time, started the construction of My Phuoc - Bau Bang lines... These works have been and will create a transportation system connecting provinces and cities in the southern key economic region, to ensure the continuity of goods in and outside the province.
In addition, there are 2 ICDs (inland container depot) in operation, Song Than ICD and Di An Port - Logistics Center. These are facilities with complete infrastructure, providing important services such as container handling, container storage, container transportation and customs clearance. In addition, the province has other enterprises investing in warehouses, providing diversified services, basically meeting the demand for logistic services of enterprises in and outside the province.
Solutions to strong, sustainable development
Recently, the provincial People's Committee has issued a plan to develop logistic services in Binh Duong province in 2017-2020 and the following years. The plan was built with a view to develop investment and development of logistic infrastructure in order to maximize the advantages of strategic geographic location of the province; Establishing regional and international logistic centers to develop Binh Duong as the leading logistic service center in the South and the world. In addition, the development of logistic services has become high value-added services in the province's trade and service structure, linked to the development of commodity production, import and export and domestic trade.
Moreover, PPC’s plan also contributes to improve the competitiveness of logistics service providers; To develop logistic enterprises in terms of quantity, quality, scale and human resources in the direction of modernity, professionalism and hi-tech application in management and business, capable of competing in domestic market and international schools. At the same time, the plan also aims to improve local governance mechanism, including policies to support the development of logistic services, investment policies, administrative reform, and coordination mechanisms in the logistic service chain ... to ensure the level of development of logistic services in the process of international economic integration.
Dr. Ly Bach Chan assessed that Binh Duong had a large number of export-import enterprises and large import-export turnover, creating the demand for the development of logistics service. However, provincial logistics has only focused on some stages such as transport of goods and warehouse services, but not able to provide higher services. He proposed that Binh Duong province should take measures such as developing and improving import export activities in terms of quantity and quality; Reorganize logistics activities to improve the capacity and quality of service providers. Binh Duong also needs to develop technology and IT application in trade, logistics and e-commerce.
Reported by Phuong Le – Translated by Ngoc Huynh
