Based on its achievements, Binh Duong provincial authority steps on a new path for the expectation that leverage for development would be promoted to make Binh Duong a locality of innovative ecosystem and the broader approach of sustainable creativity. All is to create the foundation of an attractive investment environment for step by step transformation into a smart production area.
Binh Duong provincial authority has been prioritizing attraction of investments into projects of high-tech content and smart production background. In this photo: Production is on-going at Long Hung Co. Ltd. in Thuan An city
Breakthroughs of investment attraction
For sustainable development, Binh Duong provincial authority has made breakthroughs from the innovation program to attract investments in 2016-2020 with the target of USD 7 billion of foreign investment capital (FDI). The program aims to focus on partners with strong economic potentials and large economic groups in the world to attract investments into the fields of technology, highly added value, less labor-intension, and environment friendliness. The attraction is diverted to industrial zones and clusters that have been planned. As a result, in 2016-2020, the provincial authority has attracted foreign investments up to USD 11.51 billion USD, which is 50% higher than the set target.
Up to now, despite being affected by the Covid-19 epidemic, Binh Duong continues to be a bright destination of FDI. The investment projects are in line with the orientation set out in the provincial industrial development plan by developing a number of important economic sectors such as processing and manufacturing industries and so on. As of January 15, 2021, 3,940 FDI projects of total capital of USD 35.56 billion and 49,167 domestic enterprises of a total capital of VND 446,000 billion has resided in the province.
Over the past years, Binh Duong provincial authority has issued many important policies to attract investments and develop the economy by concentrating all resources to form and develop industrial zones and clusters to meet production requirements of business of domestic and foreign enterprises. Binh Duong provincial authority has always been striving to improve the investment environment and infrastructure upgrades. According to investors' judgment, in addition to the consistency of innovation methods in attracting investment, Binh Duong provincial authority has also made important breakthroughs by focusing on creating infrastructure for local socio-economic development. At the same time, functional branches have promoted the spirit of supporting the enterprises.
Bui Minh Tri, Head of the Management Board of Industrial Zones of the province, said that Binh Duong is a locality in compliance with the government's regulations on preferential policies to attract investments. For investment projects in industrial zones that are not located in urban areas, the popular average incentive is income tax exemption for 2 years and a 50% reduction in the next 4 years and the common income tax is 20%. For projects of capital of over VND 6,000 billion deployed within 3 years or more and employing 3,000 manual workers or more or turnover of the first 3 years of VND 10,000 billion VND and more, the income tax rate is reduced for 4 years and preferential tax rate of 50% in the next 9 years. This rate also applies similarly to businesses investing in high-tech and supporting industries as certified by ministries and agencies.
Firm steps forward in digital era
Since 2016, Binh Duong provincial authority has implemented the project of building a smart city. Over 4 years of implementation, Binh Duong provincial authority has gained outstanding achievements that resonate in the international arena and have been appreciated by experts and investors. At the conference to implement the Project of Binh Duong Innovation Area, Tran Van Nam, Member of the CPV’s Central Committee cum Secretary of Binh Duong provincial Party Committee and Head of the Provincial National Assembly Delegation, emphasized that the potential and current capacity of Binh Duong, and especially, the very important achievements in the implementation of the Smart City Construction Project can help Binh Duong to completely move forward and strive to take another step, which is to build a Innovation Zone. The project is expected to create a lever to develop and make Binh Duong a province with innovation ecosystem and broader sense of sustainable innovation, a foundation for building an environment that is attractive to investments and step by step become a smart production area.
Staying with Binh Duong in the smart city development cooperation, Peter Portheine, Member of the Regional Council of Noord Brabant from Netherlands, member of the Executive Board of Binh Duong Smart City, said that Binh Duong Smart Zone needs to grow in width and depth. To develop the next step of the project, it is necessary to continue to develop Binh Duong new city and make it the center of the whole region. The next step is to build a science - technology industrial park in Bau Bang.
Reported by Tieu My – Translated by Vi Bao
