Binh Duong’s FDI attraction has positively affected the local socio-economic development during the past 20 years. In addition to State budget contribution, employment creation, export increase, FDI capital has contributed to promoting the local market expansion, transfer of new technologies and integration…
Contributing to State budget, boosting new technologies
Province-based
FDI companies have made great contributions to the province’s State budget. In
2011, the FDI sector paid US$183.2mln for the province’s State budget,
accounting for 16% of the province’s total State budget and 34.22% of the
province’s total GDP. The sector’s export turnover reached more than
US$8.309bln, accounting for 80.35% of the province’s total export turnover. 
Province-based FDI enterprises have generated jobs for hundreds of thousands of laborers
They have also contributed to improving the province’s productivity for industrial manufacture. The province’s industrial production value in 2011 increased to 55.93% from 43.91% in 1997. Despite the world’s economic downturn, the province’s industrial manufacture value in the first half the 2012 amounted to VND58.498bln, up 11.1% compared to the corresponding period of last year.
Le Viet Dung, Deputy Director of provincial Department of Planning and Investment said that FDI capital has contributed to meeting the province’s demand for socio-economic development. Possibly speaking, the province’s FDI attraction has seen as an important element to promote the local industrialization and modernization process.
Whilst, Tran Van Lieu, Head of provincial Industrial Parks Management Board said that FDI capital has contributed to shifting the province’s economic and labor structure and improving the province’s industrial manufacture.
The province’s FDI capital has also contributed to creating many new industries while increasing competitive ability for industries in terms of chemicals, steel, electronics, household electricity, farm produce and food processing, garment, footwear…To date, province-based FDI projects have focused on hi-tech industries of car components, PVC plastic, air conditioners…
Expanding market, promoting integration
According to the local functional agencies, FDI capital has contributed to promoting Binh Duong’s transfer of advanced technologies and some key industries like mechanism, electronics, computer science…
FDI capital has positively affected many other economic sectors in the province. Province-based FDI companies have also made a driving force for domestic ones to enhance their competitive ability in the current globalization context.
More importantly, FDI capital has contributed to promoting Binh Duong’s international economic integration. According to provincial Department of Industry and Trade, the FDI sector has achieved sharp increase regarding export turnover. The sector’s export value in the first nine months of 2012 is estimated at US$6.76bln, accounting for nearly 82% of the province’s total export value.
Upon from technological transfer and marketing ability from FDI companies, Vietnam’s products have been exported to the world. Many products manufactured in Binh Duong have also had a chance to get access to international markets…
Such these apart, FDI capital has indirectly made contributions to Binh Duong’s management mechanism renewal, administrative procedure reform, infrastructure improvement…while contributing to promoting the development of the local industrial parks and hi-tech parks.
Reported by Trong Minh-Translated by K.T
