Overcoming difficulties to develop
In 2020, although facing difficulties, due to Covid-19 pandemic, the province still maintained its economic growth. The province's total GRDP was estimated at surging 6.78% while the average GRDP per capita was VND150million per year, equivalent to US$6.500billion. The province's economic structure continued shifting towards gradually increasing the proportion of services and industrial manufacture, maintaining and improving the value of agricultural production. The province reached US$27.44billion and US$21.46billion in export turnover and import value, up 8.5% and up 7.5%, respectively. The province's surplus trade was nearly US$6billion.
According to provincial Department of Planning and Investment, the province in 2020 absorbed more than US$1.73billion in FDI capital. So far, the province has attracted 3,913 FDI projects with total registered capital of US$35.3billion, ranking third nationwide in FDI attraction (only after HCM city and Ha Noi).
Among countries and territories making investment in the province, South Korea now ranks fifth with 756 projects capitalized at more than VND3.2billion or 12.1% of the province's FDI capital. Some South Korean projects with great capital include Kumho Tire Vietnam Co.Ltd. with total investment of US$129.3million; DCT Partners Vietnam Co.Ltd. with total investment of US$100million; Orion Vina Food Co.Ltd. with total investment of US$60million; Lotte Corporation with total investment of US$40million…
According to statistics from the Foreign Investment Agency under the Ministry of Planning and Investment, South Korea is the largest investor in Vietnam with more than 8,500 projects capitalized at US$70.2billion. At a recent dialogue between the Prime Minister's Advisory Council for Administrative Procedure Reform and South Korean businesses in Vietnam, South Korean Ambassador to Vietnam Park Noh Wan said that the wave of investment from South Korea to Vietnam stopped temporality over the past months, due to Covid-19 pandemic. With the Law on Investment Law under the form of Private Partnership Investment (PPP) and the amended Law on Investment just approved by the National Assembly together with the EU-Vietnam Free Trade Agreement (EVFTA) that will take effect from January, 2021, the wave of investment from South Korea to Vietnam will soon get animated again.
Binh Duong has always been attractive to South Korean investors. In the photo: Production activities at Kumho Tire Vietnam Co., Ltd. (Korean capital), My Phuoc III Industrial Park, Ben Cat Town
Mr. Kim Won Sik, President of the Korean Business Association in Binh Duong: Binh Duong is still a land with many promises to bring development to economic groups, domestic and foreign enterprises. Binh Duong has a completely invested and international-class infrastructure system in recent years. Besides, open and open mechanisms and policies of the province, especially reforming administrative procedures, improving the business investment environment, have attracted the attention and interest of investors. Therefore, in the coming time, there will certainly be many investors in developed countries to explore investment opportunities.
Currently, Binh Duong is implementing an innovation program to attract investment with the goal: Focusing on attracting investment in partners with strong potentials, large economic groups in the world, prioritizing to attract investment. High-tech industries, high added value, less labor-intensive, and environmentally friendly. In which, focus on attracting industrial zones and clusters that have been planned. In addition to the investment fields to attract traditional investment, Binh Duong is planning to build a science and technology industrial park to attract high-tech enterprises, innovative enterprises, and investors in other countries. development, especially South Korea.
Advantages
To absorb more investment projects from South Korea, Becamex IDC in collaboration with the Korean International Trade Association and Gyoenggi Business Support Center has just organized an online South Korean investment promotion conference, with the participation of around 100 corporations, businesses from South Korea. The conference aimed to popularize the province's competitive advantages as well as preferential policies on investment attraction into industrial parks and compounds, thereby connecting, building up the relationship between the local administration, Becamex IDC and South Korean businesses.
Nguyen Thanh Truc, Vice-Chairman of provincial People's Committee said that the province has always acknowledged contributions by South Korean businesses to the local development. The province is giving priority to absorbing investment projects in hi-tech fields, gradually stopping investment projects at the risk of causing environmental pollution.
Cho Han-Deog, Director of the Korean International Cooperation Agency (KOICA) in Vietnam said that Binh Duong is one of Vietnam's fastest-growing localities. With a synchronous and perfect infrastructure system, the province has become one of attractive destinations for foreign investors, including ones from South Korea. But, with its fast urbanization and industrialization speed, the province is also facing environmental pollution. Hence, KOICA wants to support the province in realizing a waste treatment project for power production. It is expected to coordinate with Samsung Engineering Co. to carry out the project under the PPP form.
The key to absorb investment projects from South Korea is the province's economic development policy in the next period with focus on fields concerned by South Korean businesses like electronics, real estate trading, construction, finance…Accordingly, the province is taking solutions to attract strategic partners from South Korean to make investment in the local industrial parks with preferential policies that are obvious and favorable.