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Thứ 5, Ngày 21/12/2023, 11:00
Binh Duong: Taiwanese business dialogue
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21/12/2023
PORTAL - On the morning of December 20, the Binh Duong Provincial People's Committee (PPC) organized a Taiwanese Business Dialogue at the Provincial Convention and Exhibition Center.

The meeting was attended by Mr. Nguyen Van Danh - Vice Chairman of the PPC; Mr. Huang Yi Ming - Deputy Chairman of Taiwan Business Association in Binh Duong; Representatives of provincial departments, committees, and branches and more than 80 Taiwanese enterprises investing in Binh Duong.


Overview of the dialogue

At the dialogue, leaders of Binh Duong province's departments and branches answered questions from Taiwanese enterprises about the investment environment, new tax regulations, and relocation of Taiwanese enterprises to industrial zones and clusters.

Roadmap and policies for relocating enterprises to industrial zones and clusters

Regarding questions from enterprises about the roadmap and policies for relocating businesses in the South to industrial zones and clusters in the North, Ms. Nguyen Thanh Ha - Deputy Director of the Department of Industry and Trade said that according to the relocation plan from January 2024 to December 2025, the province would organize a pilot relocation of about 10 to 20 voluntarily registered enterprises in the Southern part of the province to the Northern industrial zones and clusters. It will complete the construction and promulgation of relocation criteria in the second quarter of 2024. It will also complete the draft relocation policy and submit it to the PPC for consideration and approval at the meeting at the end of 2024. Then, it will review, evaluate, and learn from experience in the pilot implementation of function conversion and relocation for volunteered enterprises. From January 2025 to December 2027, the province will organize enterprise mobilization, propaganda information about the content of the Project, and implement function conversion and relocation in Di An City, Thu Dau Mot City, Tan Uyen City and Ben Cat Town. From January 2028 - December 2030, it will continue to organize enterprise mobilization, propaganda information about the content of the Project and implement measures to ensure implementation of the Project as planned.

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Representative of Taiwanese enterprises asks questions related to the roadmap and policies for relocating enterprises to industrial zones and clusters in the North of the province

The province has also considered and proposed relocation support policies for manufacturing enterprises located outside industrial zones and clusters in the Southern region to change their functions and relocate to Northern industrial zones and clusters in the province. At the same time, it has proposed criteria to identify enterprises outside industrial zones and clusters in the area. Accordingly, the scoring criteria to determine the relocation of enterprises have four levels: Forced relocation; subject to relocation; subject to conversion of function; subject to non-relocation, or conversion of function. The Department of Industry and Trade has developed a draft of 04 groups of relocation support policies.

 

Ms. Nguyen Thanh Ha - Deputy Director of the Department of Industry and Trade informs about the policy for relocating enterprises to the Northern industrial zones and clusters of the province

To serve the conversion of functions of industrial zones and clusters in the south of the province and relocation of production facilities located in residential areas as well as the province's industrial development process, Binh Duong has had a plan to develop several industrial clusters specializing in wood, mechanics, ceramics, textiles, footwear, high-tech agricultural product processing, supporting industries, etc. It plans to develop 02 zero-carbon industrial clusters in Tam Lap 2 and Tam Lap 5 - Phu Giao district; 09 wood industry clusters (Thanh An 1, Thanh An 2, An Lap 2, Dinh Hiep 2, Dinh Hiep 3 - Dau Tieng; An Binh 3, An Binh 4, An Binh 6, Tan Long 1 - Phu Giao); 02 industrial clusters supporting the wood industry (Thanh An 3 - Dau Tieng and An Binh 5 - Phu Giao); 02 ceramic industrial clusters serving relocation (Bo La 3 and Bo La 4 - Phu Giao); 02 industrial clusters supporting the textile, footwear, and handbag industries (Tan Dinh 2 and Tan Dinh 3 - Bac Tan Uyen); 02 agricultural product processing industrial clusters (Long Tan - Dau Tieng and An Binh 2 - Phu Giao); and 25 environmentally friendly multi-industry industrial clusters serving the relocation.

Regarding this issue, Ms. Nguyen Thi Bich Thuy - Deputy Director of the Department of Natural Resources and Environment added that, according to the proposal, the province would have a policy on changing the use purpose of premises, factories, and land for enterprises that have to relocate. This is a breakthrough policy to support and create motivation to promote the implementation of the Relocation Project to ensure on schedule.

About 44 FDI enterprises experience minimal global tax impact

Regarding the global minimum tax regulation, Mr. Trinh Hoang Tuan Anh - Deputy Director of the Department of Planning and Investment said that Binh Duong province was the pioneer and the first locality to coordinate with the Institute of Policy Management and Development Strategy - Viet Nam Union of Science and Technology Associations to synchronously research and survey FDI-invested enterprises in the area affected by the global minimum tax rate, make forecasts on the policy roadmap and recommendations so that when the Resolution is issued, the province would make timely moves to maintain proactiveness in managing local investment attraction policies.

 

Mr. Trinh Hoang Tuan Anh - Deputy Director of the Department of Planning and Investment provides information on global minimum tax

The global minimum tax rate regulations once promulgated will not affect considerably FDI attracion FDI for Viet Nam in general and Binh Duong in particular. For Binh Duong, which is considered the industrial capital of the country, there are currently more than 4.000 FDI enterprises, however only about 44 FDI enterprises are likely to be affected by the Resolution on Viet Nam officially imposing the global minimum tax rate. Besides, in the case of applying this Resolution, the State budget will increase by about 2.000 billion per year. Businesses with a turnover of less than 750 million euros will not be affected by the Resolution and continue to enjoy investment incentives at the current preferential tax rates.

In the coming time, the Department of Planning and Investment will continue to advise the province, accompany the enterprise community, promptly remove internal difficulties as well as regularly and continuously listen to feedback and suggestions. By that means, it will synthesize and propose policies to continue to enhance the province's position in the region and the world, as a place for investors to feel secure in continuing to expand production and also the top choice of investors when coming to Viet Nam to explore business cooperation.

At the dialogue, representatives of the Department of Labor, War Invalids and Social Affairs, Provincial Social Security, and Provincial Police also answered questions related to the issuance of work permits, management of foreigners' entry and exit, and the revised Law on Social Insurance, etc. 

 

Vice Chairman of the PPC Nguyen Van Danh concludes the dialogue

Concluding the dialogue, Vice Chairman of the PPC Nguyen Van Danh said that through the opinions of enterprises at the dialogue, the province would fully absorb and direct urgent research to find solutions to remove difficulties and obstacles for businesses. In the coming time, the province will continue to focus on improving the investment environment, enhancing competitiveness, and promoting support for the development of investment enterprises in the province in general, and Taiwanese enterprises in general. The province will focus resources invested in perfecting the socio-economic infrastructure system such as transportation, water supply, electricity, and environmental treatment. It will also conduct plans to expand industrial parks and create a clean land fund to attract investment. Furthermore, it will implement human resource training, build social housing, and housing for workers, and provide adequate and timely labor resources for enterprises investing in the province.

The Binh Duong provincial government has committed to promoting administrative procedure reform to ensure openness, transparency, and simplicity; and create the most favorable conditions for enterprises to invest. The province will focus on developing high-quality services to meet the production and business requirements of enterprises and the industrial and urban development needs of the province. In addition, it will strengthen guidance at all levels and branches to focus on ensuring political security, social order, and safety; and create conditions for enterprises to feel secure in investing, producing, and working in Binh Duong.

With an open and attractive investment environment, in recent years Binh Duong has always been one of the leading provinces and cities in the country in attracting foreign direct investment. As of December 15, 2023, the province has attracted 1 billion 495 million USD including 135 new projects, 41 projects to adjust capital increase, and 140 projects to contribute capital to buy shares. Accumulated by the end of November 2023, the whole province has 4.219 investment projects from 65 countries and territories with a total registered capital of more than 40.3 billion USD. Binh Duong currently ranks 2nd in Viet Nam in attracting foreign investment capital, after Ho Chi Minh City. To date, Taiwan has invested in 879 projects with a total investment capital of 6.3 billion USD, ranking first in Binh Duong.

In the coming time, the province prioritizes attracting investment in high-tech, advanced, environmentally friendly, less labor-intensive industries and fields that create high added value, financial services, logistics and other modern services, supporting industries, high-tech agriculture, and especially attracting investment in the Science and Technology Industrial Park on the 4.0 industry platform. Binh Duong will diversify and attract foreign investment from potential markets and partners, focusing on the world's leading developed countries and transnational corporations that possess advanced technology and modern management levels.

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