In the dialogue about investment opportunities in Binh Duong on the morning of November 25, Mr. Mai Hung Dung - Member of the Provincial Standing Committee, Standing Vice Chairman of the PPC chaired the Dialogue. Attending were Mr. Thomas McClelland – Chairman of Tax Sector Committee of Eurocham; representatives of leaders of domestic and foreign corporations and enterprises; leaders of provincial departments. On the afternoon of the same day, the Dialogue on Investment Opportunities in Binh Duong was chaired by Mr. Tran Thanh Liem - Deputy Secretary of the Provincial Party Committee and Chairman of the PPC.
Mr. Tran Thanh Liem - Chairman of the PPC and Mr. Mai Hung Dung - Standing Vice Chairman of the PPC chair the Dialogue
Binh Duong – "golden land" for investors
Introducing the potential to investors, the leader of the provincial People's Committee (PPC) said that Vietnam is a country with stable political security and social order and safety. This is an important premise for foreign businesses to be assured of investing and operating business in the long term. In addition, Vietnam has an abundant human resource, currently in the golden population with about 60% of the working age population, able to meet the diverse needs of human resources. Not only that, with a population of over 96 million people, the purchasing power of Vietnam market is increasing, promising to be a potential market for investors. Active in international integration, as a member of WTO, Vietnam has so far signed and is negotiating 16 bilateral and multilateral FTA agreements. Among them, 12 FTAs have taken effect and are under implementation. This agreement is opening the door for Vietnam to connect and participate more deeply in the value chain and global production network.
Binh Duong is a province located in the Southern key economic zone - a dynamic and thriving economic region with economic growth of 1.5 times higher than the national average, accounting for 40% of export turnover, contributing 60% to the national budget, attracting more than 60% of projects and 50% of foreign investment capital into Vietnam. Binh Duong is transforming itself into a "golden land" that is always ready to spread the red carpet to welcome businesses to invest and cooperate.
Accompanying the transformation of Asia and the world, Binh Duong province has been implementing "Binh Duong Smart City 2021, vision to 2030" project, a breakthrough program for socio-economic development of the province, gradually build technical and social infrastructures, build a favorable and stable investment environment, in order to raise the development of Binh Duong Smart region to the region and the world. In particular, in 2018, Binh Duong province became an official member of the World Tecnopolis Association (WTA) and a member of the Intelligent Community Forum (ICF); Binh Duong is also the first locality of Vietnam to be honored as one of 21 cities and regions with the development strategy of the world's typical smart city (Smart21) in two consecutive years 2019 and 2020.
With modern and synchronous technical infrastructure, complete inter-regional transportation system, creating favorable conditions for industrial development and planning on building new urban areas, so far, Binh Duong province has attracted USD $35 billion of foreign investment capital from 64 countries and territories around the world.
Many preferential policies for investors
Mr. Vo Son Dien - Director of Marketing Department, Becamex IDC introduced the potentials and advantages of Binh Duong as well as investment opportunities in Binh Duong, especially, the Binh Duong Smart City Project is being implemented and will bring many practical benefits to investors. Becamex IDC is implementing many projects associated with major corporations around the world, including projects in science, technology, logistics and commercial services.
Sharing tax and tax policies for investors in Vietnam, Mr. Thomas McClelland – Chairman of Tax Sector Committee of Eurocham said that, Vietnam's advantage is having the lowest tax rates in Southeast Asia. In the near future, the Vietnamese Government will consider reducing the tax rate even lower. It can be said that the process of synchronizing taxes and reforming administrative procedures of Vietnam has greatly facilitated investors. Including tax incentives for businesses investing in the fields of: Education, health and environment; projects in the field of high technology and supporting industries; high-tech electronic components; agriculture sector; technological applications for aviation etc. and other incentive factors.
Enterprises ask questions related to the preferential policies of Vietnam generally and Binh Duong province particularly
Regarding the supply of high quality labor force to meet the needs of enterprises, according to Mr. Pham Van Tuyen - Deputy Director of Department of Labor, Invalids and Social Affairs, Binh Duong province currently has 8 universities and colleges that train human resources. Through the dialogues between the provincial leaders with domestic and foreign investors, most businesses have appreciated the human resources of Binh Duong. However, the quantity still does not meet the needs of the business. In the near future, functional departments will work directly with businesses and training schools to find solutions on how the training process is closely linked to the needs of the business.
Answering questions of businesses related to preferential policies and investment incentive industries of Binh Duong. According to Mr. Bui Minh Tri - Head of Binh Duong Industrial Zones Authority, some industries in the province are interested in attracting investment in the coming time such as auto parts, mechanics and electronic equipment. The orientation of the province is to attract industries that use less labor and cause less environmental pollution. With preferential investment policies, Binh Duong is a province that strictly complies with the Government's regulations on preferential investment policies. Specifically, projects investing in industrial zones that not located in urban areas, the common average incentives are income tax exemption for 2 years and a 50% reduction for the next 4 years, a general income tax of 20%. In addition, the general policy for export machinery, equipment or raw materials for export production. For projects with high capital of VND 6,000 billion deployed within 03 years or more, employing 3,000 laborers or the first 3 years with turnover of VND 10,000 billion, income tax rate is reduced for 4 years, exempted from 50% for the next 9 years with preferential tax rates etc. This level is similar to businesses investing in high-tech and supporting industries certified by the Ministries.
Mr. Tri also said that the strength of Binh Duong is having a favorable position located in the Southern key economic zone to build synchronous infrastructure, convenient for goods circulation. Most importantly, the province has well implemented administrative procedure reform, which is a bright spot for building a centralized public administrative center, one-stop service division. Annually, the provincial leaders organize dialogue sessions to acknowledge the opinions of investors to timely assist in solving difficulties and obstacles for enterprises. Mr. Vo Son Dien further explained that the ecosystem of innovation and start-up to attract more workers and build social housing for workers to retain workers. In the Binh Duong Smart City Scheme, the model of Triple Helix State – Enterprises - Schools/ Institutes, the link between the triple helix will solve the problem of labor resources to meet the needs of businesses.
Mr. Tran Thanh Liem - Chairman of the PPC speaks at the Dialogue Session
Confirming to investors, the provincial leaders believed that, with the strengths of technology, finance, international market network and business management skills of investors, once combined with the advantages of Binh Duong, it will bring great and practical benefits to both sides. On the provincial side, the province committed to always accompany the business, ready to create the most favorable conditions for business production activities of foreign investors.