The meeting was attended by Mr. Nguyen Loc Ha - Member of the Provincial Standing Party Committee, Vice Chairman of the Provincial People's Committee (PPC), and leaders of provincial departments, committees, and branches; Mr. Alexander Ziehe - Chairman of the GBA in Viet Nam; Ms. Le Quynh Anh - Executive Director of the GBA in Viet Nam and representatives of 40 German enterprises and investors.
Overview of the meeting
Binh Duong is a priority destination for German enterprises
At the meeting, Mr. Le Thanh Toan - Deputy Director of the Department of Planning and Investment gave an overview of the socio-economic situation and investment attraction of Binh Duong province to German enterprises. In recent years, Binh Duong province has always been evaluated as one of the leading localities in Viet Nam on the speed of socio-economic development and attracting foreign direct investment (FDI). In 2023, the total foreign investment capital newly registered, adjusted, and contributed for shares purchased across the province reached 1 billion 539 million USD, ranking 9th in the country and accounting for 4.3% of total registered capital, reaching 81.62% of the 5-year plan (2021-2025). The processing and manufacturing industry is still an area that attracts a lot of attention from investors, with 100 newly registered investment projects.
Mr. Le Thanh Toan - Deputy Director of the Department of Planning and Investment informs the province's investment attraction situation
Accumulated to date, the province currently has 4,247 investment projects from 65 countries and territories with a total registered capital of 40.5 billion USD, accounting for more than 8.6% of the country's total FDI capital. The average project size is about 9.6 million USD. Binh Duong currently ranks third in Viet Nam in attracting foreign investment capital, after Ho Chi Minh City and Ha Noi. The top industry is the processing and manufacturing industry, accounting for 74% of total registered investment capital. Many large investment projects of famous corporations have invested in Binh Duong such as Tokyu, Aeon, Mitsubishi (Japan), Procter & Gamble (USA), Kumho (Korea), Uni-President (Taiwan), Lego (Denmark), etc.
Currently, Binh Duong has 29 industrial parks, with a total area of 12,663 hectares, land rental rate reaching 93.3%, and 12 industrial clusters with a total area of 790 hectares, land rental rate reaching 67.4%, meeting the requirements of attracting and arranging investment projects.
Leaders of the Department of Planning and Investment informed that Germany has 18 projects with a total investment capital of nearly 50.7 million USD in Binh Duong, the main field is the manufacturing and processing industry, including typical projects such as VNPT Telecommunications Equipment Company - Siemens, Hasan - Dermapharm Joint Venture Co., Ltd, Messer Viet Nam Industrial Gases Company Limited, Siemens Busway Factory, etc.
Mr. Alexander Ziehe - Chairman of the GBA in Viet Nam speaks at the meeting
Expressing his impression of Binh Duong province's investment attraction, Mr. Alexander Ziehe - Chairman of the GBA in Viet Nam sent his thanks to Binh Duong's authorities for their continuous support, creating opportunities for direct dialogue and positive cooperation with the foreign enterprise community, including German enterprises. Binh Duong is one of the main locations for German investment projects, just after Ho Chi Minh City and Ha Noi. The main reasons for GBA members and new investors to consider Binh Duong as a potential investment location are due to its location which is near seaports and Ho Chi Minh City, a developed supplier system, and attracting a qualified local workforce. Furthermore, most of the province's industrial parks provide good service and infrastructure environments. The province's tax policy in attracting FDI is also a strong reason for enterprises to make investment decisions in Binh Duong.
Continue to improve the investment environment, attracting more German projects
The GBA in Viet Nam has nearly 400 member companies. German enterprises are very impressed with the open and professional environment that Binh Duong is establishing for foreign enterprises. However, to further facilitate investment and production and business of enterprises, German enterprises recommended that localities continue to prioritize solving infrastructure problems, especially main roads connecting Ho Chi Minh City, and traffic to the airport, creating favorable conditions for international business trips and ensuring prompt customer visits.
It is recommended that localities notify about changes and issue new policies for enterprises at least 3 months in advance, provide a minimum 6-month incentive period, and clearly announce any changes on all media in both Vietnamese and English.
German enterprises raise recommendations at the meeting
The digitalization of administrative procedures is also an issue of concern for German enterprises. "We recommend implementing a system of codes and signatures, as well as checking documents to limit paperwork and simplify procedures. At the same time, there should be an online monitoring and feedback system to receive and promptly resolve enterprise problems. The shift to digital will enhance productivity, speed, transparency, and cost efficiency," emphasized Mr. Alexander Ziehe - Chairman of the GBA in Viet Nam.
Besides, enterprises also want the province to continue simplifying customs procedures, import and export clearance; regulations on granting work permits to foreigners; regulations on fire prevention and fighting in granting construction permits; paying attention to sustainability factors such as net emissions, rooftop solar energy systems that meet green production, etc.
At the meeting, leaders of the province and departments, committees, branches, and localities of Binh Duong province directly discussed and answered questions from German enterprises and investors, as well as informed enterprises about the province's development directions in the coming time. Representatives of Becamex IDC Corp introduced to German enterprises the potential of industrial parks and investment opportunities in Binh Duong.
Representatives of departments and branches respond to enterprise recommendations.
Representative of Becamex IDC Corp introduces the potential of industrial parks and investment opportunities in Binh Duong
According to leaders of the Department of Planning and Investment, currently, Binh Duong province is promoting digital transformation to build a digital government, digital economy, and digital society, and build a new ecosystem to promote development. The province is committed to creating a transparent and investor-friendly business environment.
In the coming time, Binh Duong will continue to restructure the industrial network and upgrade existing industrial parks into smart industrial parks to focus on modernizing existing industries.
In particular, continuing to build a regional transport system by investing in developing transport infrastructure with key projects such as Ring Road 3, Ring Road4, National Highway 56B, Provincial Road 745B (Tay Ninh - Binh Duong - Binh Phuoc), Ho Chi Minh City - Thu Dau Mot - Chon Thanh Expressway, My Phuoc - Tan Van road, National Highway 13, etc.
Binh Duong's investment calling policy has shifted to selectively attracting investment to businesses with high technology and added value, with links to domestic enterprises and local R&D (research and development) centers. Therefore, the province prioritizes investors with a vision and strong application of high technology associated with environmental protection to create harmony between socio-economic development and green growth, contributing to building Binh Duong smart city to reach the international level.
Mr. Nguyen Loc Ha - Vice Chairman of the PPC speaks at the meeting
Speaking to conclude the meeting, Mr. Nguyen Loc Ha said that although the proportion of German investment projects in Binh Duong is still quite modest, hopefully in the near future, with the global economic pivot and local efforts, Binh Duong will be a potential destination for German enterprises with modern technology and advanced management.
On behalf of the provincial leaders, the Vice Chairman of the PPC welcomed German enterprises to invest in Binh Duong, and the Binh Duong provincial government pledged to create the most favorable conditions for enterprises; always accompany and support in terms of policies and investment in modern infrastructure to ensure that foreign enterprises in general, and German enterprises in particular, can feel safe to invest, produce and do business in the province. Provincial leaders hope that after this working visit, the Delegation will consider and decide to invest in high-tech projects in Binh Duong province.
Provincial leaders discuss with leaders of the GBA in Viet Nam.
Delegates take a group photo.