Part 3: Making the most of fiscal space
In order to make the most of resources for economic development, Binh Duong is further coming up with innovative solutions in line with the new situation. The province will make efforts in improving the local investment climate, enhancing production and business efficiency of all economic sectors, further unclogging all resources from the society for more and more sustainable development.
Leading from public investment
In the context of limited State budget, with its right decisions, Binh Duong has mobilized enormous resources from the society to develop a synchronous, modern traffic-technical infrastructure system, attracting more and more investors. In the period of 2021-2025, Binh Duong has continued its goal of "taking public investment to lead private investment" with the local capital for public investment of nearly VND 50trillion.
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Production activities at NTI Vina Company
According to Mai Ba Truoc, Director of provincial Department of Planning and Investment, this capital will be allocated to key projects that stimulate and unlock investment resources from all economic sectors. In Binh Duong, every VND 1 of State budget capital invested will attract additional VND5.7 of non-State investment capital. Besides, many important projects in the fields of transport, irrigation, education-training, science and technology, health, healthcare...have been built and upgraded, contributing to promoting the shift of economic structure in sectors and fields with limited investment from other capital sources.
For example, the construction of National Highway 13 has significantly contributed to the socio-economic renewal and construction cause in the Southeastern region in general and Binh Duong in particular. National Highway 13 has become a backbone of the province, a prerequisite and an important foundation in the formation of industrial parks (Ips), namely VSIP, My Phuoc 1, 2, 3, Bau Bang..., contributing to strongly absorbing FDI capital, thereby significantly changing the local socio-economic image. After forming up regional traffic planning, the My Phuoc - Tan Van - Bau Bang route continues being formed to complete the traffic axis connecting to seaports and international airports such as Long Thanh airport, Cai Mep - Thi Vai port...
In addition, the roads along the horizontal axis, connecting the province such as DT743, DT746, North Tan Uyen - Phu Giao - Bau Bang ... and some sections on the province of the belt roads No. 3 and 4 have created a regional traffic system, connecting IPs and connecting the system of Ips to seaports and international airports, forming up a complete complex, consolidating competitive advantages for the province. This has led to the rapid development of large IPs, attracting tens of thousands of domestic and foreign enterprises together with millions of people to live and work in Binh Duong.
Improving investment climate, maintaining advantages
In 2021, in the context of the whole society being negatively affected by the Covid-19 pandemic, Binh Duong constantly improved the local investment climate, creating new imprints in investment attraction. Currently, Binh Duong ranks second nationwide in terms of FDI attraction, after Ho Chi Minh city. Notably, the province in the first 4 months of 2022 attracted over US$ 2.4 billion (up 396% over the same period last year). Up to now, the whole province has lured 55,980 domestic investment projects with total capital of VND553trillion and 4,042 FDI projects with total capital of US$39.4 billion.
Facing the complicated developments of the Covid-19 pandemic, the province has directed the drastic implementation of urgent tasks and solutions, ensuring social welfare; organized meetings with enterprises for timely support. With those efforts, the province's investment climate has been continuously improved. The Provincial Competitiveness Index (PCI) in 2021 reached 69.61 points, ranking sixth in the rankings and being in the group of localities with good evaluation. In particular, Binh Duong rose in terms of the PAPI Index in 2021, with 47,178 out of 80 points, ranking 2nd among 63 provinces and cities.
According to Kim Won Sik, Chairman of the Korean Business Association (Kocham) in Binh Duong, despite economic challenges, in 2021 and the first months of 2022, Binh Duong has still maintained its performance in attracting investment projects and developing. This was the local result of efforts to improve the investment climate over the past time. Especially, during the Covid-19 period, the province created favorable conditions for enterprises to maintain their production and business activities. The province’s functional agencies are increasingly improving the quality of service, especially in administrative procedures for enterprises.
Vo Van Minh, Vice-Secretary of provincial Party Committee, Chairman of provincial People's Committee said that over the past time, the province made great efforts in improving the PCI, Par Index, PAPI... in order to reform administrative procedures and create a good investment climate, attracting capital from domestic and foreign enterprises in the fields of industrial manufacture, trade - services, technical infrastructure to promote the local socio-economic development. In order to be proactive to welcome big investors, the province will further promote administrative reform, build infrastructure, train high-quality human resources in the local socio-economic development program in 2022, creating an attractive investment climate. “With the determination to build a government that serves, takes enterprises and people as the center, the province has always put administrative reform, investment climate improvement as the local top concern. In the coming time, Binh Duong will further persist in its goal of improving the quality of the local investment climate, accompanying enterprises ", said Mr. Minh.
Over the past time, Binh Duong strongly changed in order to become a potential land. In addition to promoting infrastructure construction, the province drastically improved the local investment climate, creating favorable conditions for production and business enterprises, strongly attracting FDI inflows. As a result, the province reached great achievements in socio-economic development. The province’s economic structure was shifted strongly towards industrial manufacture – services-agricultural production. The province’s urbanization image was formed clearly.
Reported by Ngoc Thanh-Translated by Kim Tin
