Separated from Song Be province on January 1st 1997, Binh Duong province has made remarkable breakthroughs in socio-economic development since then. The province is now considered one of the localities with the most dynamic economic development and the "hot address" or highlight of FDI attraction in the Southern key economic zone.
Binh Duong is Ranked 2nd in FDI attraction
To implement the policy of "Spread flowers inviting investors", with open mechanism, it has created favorable conditions to attract more investors into Binh Duong.
With the slogan "rolling out the red carpet to welcome investors" and open policies, the province has created favorable conditions to attract more and more investors.
Until December 2017, Binh Duong has attracted a total of 3.037 projects with total registered investment estimated at US$ 28 billion 473 million, ranked 2nd in the country after Ho Chi Minh City in attracting FDI. Of which, 1.878 projects invested in industrial zones with a total registered investment capital of US$ 19 billion 524 million, accounting for 68,5% of FDI capital in the province. it was 27 times higher in terms of projects and 28 times higher in terms of capital compared to 1997,
More than 64 countries and territories have so far invested in Binh Duong. More and more transnational corporations and companies with financial and technological capabilities have choosen Binh Duong as favored destinations. Taiwan, Japan, Korea, Singapore and Samoa are countries and territories with a long and stable relationship with Binh Duong province. In particular, Taiwan is the biggest investor with 772 projects and the total registered capital of US$ 5 billion 869 million, accounting for 20,6% of total foreign direct investment in the province. Japan ranked 2nd with 250 projects and the total registered capital of US$ 5 billion 253 million, accounting for 18,4% of total investment; Singapore ranked 3rd with 163 projects and the total registered capital of US$ 2 billion 764 million, accounting for 9,7% of total investment; Korea ranks 4th with 633 projects and the total registered capital of US$ 2 billion 756 million, accounting for 9,68% of total investment.
More corporations and transnational companies with financial capability and technology investment come to invest in Binh Duong
Besides countries and territories in Asia that have large investment projects in Binh Duong, there are countries and territories from Europe and North America with the number of projects as well as investment capital increasingly accounting for high proportion of total foreign investment in Vietnam in general and Binh Duong province in particular. These countries and territories have brought with them modern technologies and advanced management solutions that contribute to the industrialization and modernization of province .
In the field of investment, manufacturing and processing industry is the leading industry in attracting foreign investment with 2.406 valid projects,and the total investment of more than US $ 19 billion, accounting for 82% of total registered capital in the province. Real estate business ranked 2nd in absorbing FDI.The province has attracted large-scale projects to invest in infrastructure of industrial parks and residential areas with 37 valid projects, and the total registered capital of nearly US$ 3,2 billion, accounting for 14% of total registered capital in the province. Other sectors such as trade and services, goods distribution, construction and transportation have gradually taken up a relatively large share of investment structure in Binh Duong.
Supporting industries attracts FDI significantly
In Binh Duong, the supporting industry started to develop rapidly in 2005. Particularly, the supporting industries of textiles, leather and footwear, mechanics, electricity and electronics, wood processing have developed strongly in terms of number of enterprises, production value, turnover etc. and made important contributions to the development of provincial processing industry. Currently, Binh Duong has formed industries producing materials for textile, leather and footwear, mechanical, electrical and electronic industries. The province has also developed a 300 hectare industrial park in Bau Bang which specializes in supporting industries to boost FDI attraction
Thanks to the initiatives for supporting industries, Binh Duong is considered one of attractive destinations for investors. With the available supporting industries enterprises of Binh Duong and neighboring provinces will not depend too much on imported raw materials. With the advantage of 28 industrial zones, 8 industrial clusters and hundreds of large commodity manufacturing enterprises, Binh Duong has become one of the hot address with largest FDI attraction in supporting industries.
Mr. Luong Quang Trung - Chief Representative of Taipei Economic and Cultural Office in Ho Chi Minh City said, Binh Duong has good investment environment, modern industrial parks infrastructure and active concerns of local authorities. All of those elements help to create favorable conditions for investors. In addition, in recent years, Binh Duong has speeded up developing supporting industries that promises to lure more investors thus time there will be more businesses looking to invest in the coming time.
Mr. Nguyen Thanh Truc, Director of provincial Department of Planning and Investment said that the policy of the province is to attract investment in high value-added and labor-intensive fields, especially in the field of supporting industry. Recently, Binh Duong has attracted more FDI capital in supporting industries. Such projets include Tetra Park Binh Duong (Singapore) Joint Stock Company with registered capital of US$ 124 million in Vietnam-Singapore Industrial Park II-A, specializing in producing sterile packaging from paper, plastic and aluminum for food packaging; the project of Hi-Tech Sewoon Medical Vina Co., Ltd (Korea) at Vietnam-Singapore II-A Industrial Park which added more US$ 33.9 million into refistered capital, specializing in manufacturing medical equipment; or the project of Polytex Far Eastern Taiwan Co., Ltd with total investment capital of US$ 760 million in Bau Bang Industrial Zone, Bau Bang District.
Binh Duong signs cooperation agreement with the Kolon Group
KVT-1 tire production project of Kolon Binh Duong Industry Co., Ltd (Korea) in Bau Bang Industrial Park is one of the prominent projects of this kind. The project is capitalized at US$ 220 million, specializing in manufacturing high strength HMLS polyester fiber yarns as a reinforcement material for automotive tires. By the end of 2016, Kolon also signed a MOU with the province on the implementation of the project of tire production plant, automobile airbag with investment capital of up to US$ 1 billion on an area of 42ha in Bau Bang Industrial Zone.
In general, most large-scale projects licensed in Binh Duong mainly operate in high technology and supporting industriy sector. This trend is expected to continue to grow rapidly in 2018 and beyond. This is a good signal not only for the province but also for the whole country.