Adjusting Binh Duong province industrial park development planning until 2020 – Part 2

Part 2: Northern localities of the province to be ahead of opportunities

Currently, Northern localities of the province such as Ben Cat, Bau Bang, Bac Tan Uyen, Dau Tieng, etc. are emerging to be ahead of opportunities of industrialization and urbanization, contributing to provincial development.

Difficulties overcome for industrial development

Binh Duong Province was started up with industrialization 20 years ago. Provincial leaders chose the potential land strip in the North of National Highway 1A to develop an industrial park. Then, industrial parks of Song Than 2, Tan Dong Hiep A&B, Viet Huong, etc. were in turn established. The birth of VSIP in the Southern localities of the province has created a lively appearance of industry, urban, and services of Binh Duong Province.

While the Southern localities of the province such as Thu Dau Mot, Thuan An, and Di An are busy with large urban and industrial investment projects, the Northern ones have been of agricultural marks and wild meadows. However, in recent years, by orientation and direction of provincial Party Committee, Provincial People’s Council, and provincial People’s Committee as well as agreement and support of the people, the Northern localities have made great efforts in developing industrial zones to be ahead of opportunities and investment invitation.

Northern localities of the province have good opportunities to emerge. In this photo: Urban area and My Phuoc Industrial Park 3 in Ben Cat Town is in view. Photo: Xuan Thi

After the success of Northern industrial parks of the province, Binh Duong Province has decided to push the industrial development towards the North to promote economic development of agricultural districts in one hand and to transit economic structure and eradicate poverty of local people in the other hand. Carrying out such decisions, Becamex IDC for a short time has constructed infrastructure of My Phuoc Industrial Park in Ben Cat Town. Thanks to the orientation and coherent direction of provincial leaders, the Northern industrial parks of the province have drawn much attention of investors.

Accordingly, in over 12 years of operations, Industrial Parks 1, 2, 3, and 4 have lured over 400 FDI projects of over US$ 3 billion of investments. Many large projects have fallen short to Kumho Asiana (a tire producer of investments of US$ 360 million), Kraft Vina (a paper producer of investments of US$ 180 million), Maruzen Foods Corporation (a food producer of investments of US$ 104 million), Colgate Palmolive Vietnam (of US$ 41 million), Tomoku Vietnam Co. Ltd. of nearly US$ 50 million, and so on.

The success of My Phuoc Industrial Parks is the foundation for industrial development in the Northern localities. For the time, the presence of Singapore Ascendas Protrade, Viet Huong 2, Bau Bang, Tan Binh, Tan My Industrial clusters, Tam Lap, Thanh Tuyen, etc. in the Northern localities of the province have created large land fund with basic and in-good-shape infrastructure to be ready for investments from all over the world to Binh Duong Province.

Development widely open

Through time, industrial development of Binh Duong Province has been known as investment attraction making it more potential for industrial parks and clusters in the North of the province to be promoted. This has been expressed by the large FDI flow, especially in 2015.

In the year, provincial People’s Committee has for 3 times granted investment certificates to FDI enterprises including various projects investing into industrial parks in the North of the province. Kraft Vina, a joint venture of Thailand and Japan and package producer in My Phuoc Industrial Park 2, has decided to add US$ 130 million to its investments making total investments of US$ 453 million in Binh Duong Province. The investment project of Trung Thien Company into Thanh An industrial cluster of Dau Tieng District has added up to US$ 50 million to woodwork production and processing.

After nearly 2 years of operations, Singapore Ascendas Protrade Industrial Park in Ben Cat Town has lured some domestic investment projects of VND 46 billion and 22 FDI investment projects of US$ 118 million into electronics and auxiliary industries. Being of large advantages, Singapore Ascendas Protrade Industrial Park has won the trust of Chenglong Group from Taiwan who has decided to invest into a paper producing factory of US$ 1 billion in this industrial park. This is the second FDI project of the province to hit US$ 1 billion and the largest industrial project ever invested into Binh Duong Province.

Looking back on investments into Northern industrial parks and clusters of the province, we could see the strong emergence of Bau Bang Industrial Park in BAu Bang District. The newly established industrial park has good infrastructure and geography position to be conformed to decisions of the province and the needs of investors in new development stage. Bau Bang Industrial Park has immediately become a location of attraction to domestic and foreign investors. In 2015, Bau Bang Industrial Park received a 400-ha auxiliary industrial development project of up to US$ 274 million of Polytex Far Eastern Vietnam Co. Ltd.. The investments will be increased to US$ 1 billion upon fulfillment of the stages. Besides, DDK Group of Taiwan has made a deal with Becamex IDC to re-rent 80 ha of the industrial park to establish a joint venture for investment projects in Vietnam. The deal is valued at US$ 250 million to develop infrastructure for about 60 enterprises operating in the same industry.

The Northern region of the province ten years ago was the land of agriculture; however, industrial parks and clusters have immediately dominated by thousands of large-scale factories and plants. This was thanks to efforts of local authority and effective investments, proving their competence and role. This is the foundation for stronger emergence of industrial development in the Northern region of the province for the time to come.

Reported by Khanh Vinh – Translated by Vi Bao