The development of auxiliary industries not only serves the industrial production of Binh Duong and the entire country, but also aims at exports and integration into global value chains. In order to create momentum for sustainable industrial acceleration in the new phase, Binh Duong is placing special emphasis on the development of high-tech auxiliary industries.
Enhancing competitiveness for Vietnamese enterprises
Located in the Southern Key Economic Region, Binh Duong enjoys numerous favorable conditions for economic development, especially in auxiliary industries. The province has seen a growing number of projects and major enterprises engaging in auxiliary industries. To prioritize and elevate auxiliary industries, a dedicated industrial park (IP) for attracting investment into auxiliary industries has been established in Bau Bang district. However, Binh Duong also acknowledges that the added value of auxiliary industry products remains low and the overall effectiveness has not matched the sector’s scale yet. Export turnover from foreign-invested enterprises has accounted for 80% of the province’s total exports, but linkages with domestic enterprises remain weak. Moreover, collaboration among enterprises is still loose while bottlenecks in human resources and high logistics costs continue limiting the operational efficiency of domestic enterprises in auxiliary industries in the province.
To promote sustainable and in-depth industrial development, Binh Duong has actively supported enterprises in developing auxiliary industries to increase the value of industrial products produced by domestic businesses. Notably, on June 19, provincial People’s Committee announced a decision to establish provincial Auxiliary Industries Association. The association consists of 33 Executive Board members representing hundreds of enterprises operating in auxiliary industries, industrial park investors and manufacturers. The establishment of this association is expected to enhance the competitiveness of enterprises amid the current global economic fluctuations.
In the development orientation of the Southern Key Economic Region, Binh Duong continues being identified as one of the nation’s “industrial hubs” even as it moves forward in integrated development with Ho Chi Minh city and Ba Ria – Vung Tau province. Bui Minh Tri, Vice Chairman of provincial People’s Committee stated that amid the global economic volatility caused by supply chain shifts and new tariff barriers, the development of auxiliary industries will be the key to helping Vietnamese enterprises enhance competitiveness and effectively adapt to international markets.
Increasing investment appeal in auxiliary industries
Recently, during the groundbreaking ceremony for the Ho Chi Minh City belt road No. 4 segment passing through the province, leaders from the Government and Binh Duong province officially handed over the investment approval decision for a mechanical engineering specialized IP to THADICO Binh Duong (a member of THACO Group). This specialized IP spans 786 hectares with total investment capital of over VND 75,000 billion. The project is scheduled to start construction in August 2025 and enter initial operation by September 2026, aiming at creating over 30,000 jobs, including a high-level technical expert workforce.
According to a representative from THACO Group, the mechanical engineering specialized IP in Binh Duong is being developed as a new-generation IP—modern, green, intelligent, integrated with automation, digital platforms and artificial intelligence (AI), built on a closed circular and sustainable industrial ecosystem. The establishment of this specialized IP will help resolve raw material shortages, reduce time and transportation costs and create opportunities for enterprises to form a new-generation industrial ecosystem that attracts high-quality international investors and fosters domestic production growth.
According to data from provincial Industrial Parks Management Board, as of late May 2025, industrial parks across the province attracted 3,288 valid projects, including 2,592 foreign-invested projects with total registered capital of over US$ 31.6 billion and 696 domestic investment projects with total registered capital of VND 95,230 billion. More than half of this capital is focused on auxiliary industries. The province has also seen a rise in large projects and enterprises participating in auxiliary industries. The development of auxiliary industries in the province has gradually fostered linkages between domestic and foreign-invested enterprises.
Binh Duong is upgrading existing IPs into smart ones to focus on modernizing current industrial sectors, developing auxiliary industries to increase the local localization rate and industrial innovation. These efforts facilitate the mobilization of resources from the whole society to join in the development process. In this context, Binh Duong prioritizes the development of auxiliary industries, accelerates the finalization of raw material region planning and zones for auxiliary industries and continues creating favorable conditions to attract investment and expand high-tech production and business projects.
Mr. Tri emphasized that in order to achieve double-digit growth in 2025, Binh Duong is implementing multiple robust measures. Additionally, to promote sustainable and in-depth industrial development, Binh Duong has been actively supporting enterprises in developing auxiliary industries to increase the value of locally produced industrial products. In the coming time, Binh Duong will continue prioritizing the development of industries with high added value and gradually increase the localization rate of products, with a focus on developing auxiliary industries.
The development of auxiliary industries is an inevitable trend, not only serving the industrial production of Binh Duong and Vietnam, but also targeting exports and participation in global value chains. This will create momentum for Binh Duong’s industrial sector to accelerate and develop sustainably in the new phase.
Of the total over US$ 42.7 billion in foreign investment into Binh Duong, 75% has flowed into the manufacturing and processing sectors; however, investment in high-tech and auxiliary industries remains limited. To gradually enhance the local industrial production capacity, Binh Duong is actively developing auxiliary industries to enable the province’s industrial sector to engage more deeply in global value chains. |
Reported by Ngoc Thanh-Translated by Kim Tin
