Auxiliary industries absorb more FDI capital

Binh Duong has lured more FDI capital in auxiliary industry. This has not only helped the locality reach the set targets, but also promoted the local industrial production, exports…, contributing to perfecting a great goods supply chain of the country, the region and the world.

Absorbing more investors

In Binh Duong, auxiliary industries have begun developing rapidly since 2005. Especially, auxiliary industries for garment-textile, footwear, mechanism, electronics-electricity and woodwork processing have reached robust growth in both quality and quantity with great contributions to the local processing industry. The province has also formed up a 300-hectare industrial park for auxiliary industries in Bau Bang district, contributing to drawing more FDI capital.

With 28 industrial parks and hundreds of large-scale companies producing commodities, Binh Duong has become one of the country’s top centers in absorbing FDI capital in auxiliary industries. The province last year lured US$2.7billion in FDI capital and the majority of the capital amount poured into auxiliary industries. Noticeably, many projects in auxiliary industries with great capital included Tetra Park Binh Duong Joint Stock Co.’s factory producing packages from paper, plastic and aluminum foil for liquid foods with a total registered capital of US$124billion at VSIP II-A; the South Korean-invested Kolon Binh Duong Industry Co.Ltd.’s factory specialized in manufacturing KVT-1 industrial fabric for automobile tires with a total investment of US$220million…

Or, Taiwanese production area mainly financed by DDK Vietnam Co. which is specialized in manufacturing bicycle components with a total investment of US$250million is also a remarkable bright sport of the province in investment attraction into auxiliary industries.

Initial efficiency

Billions of USD pouring into auxiliary industries over the past years has helped Binh Duong gradually perfect its map on multi-sector industrial development.

The development of auxiliary industries has also made investors more secure when learning about the local investment climate. Park Noh Wan, General Consulate of South Korea in HCM city said that over the past time, many South Korean investors arrived in Binh Duong in order to learn about the local investment climate. Noticeably, South Korean investors continuously made new investment and raised investment capital in the province. Some projects in auxiliary industries with great capital included Lumens Vina Co.Ltd. with a total investment of US$30million, SGX Co.Ltd. capitalized at US$12million…

Possibly speaking, FDI businesses’ strong investment into auxiliary industries has helped the province’s main export industries like garment-textile, furniture, footwear…reach positive changes.

The fast development of auxiliary industries has also contributed to reducing trade gap, increasing the value of goods as well as enterprises’ competitive capacity in the province. Upon this, the province’s index of industrial production (IIP) last year surged 10.98% compared to the previous month. The province’s trade surplus also reached stable growth and was in the top three list of the whole country…

Tran Thanh Liem, Vice-Secretary of provincial Party Committee, Chairman of provincial People’s Committee said that the province will continue bending on improving the local investment climate, competitiveness and supporting enterprises. Accordingly, the province will mobilize all resources to perfect the local socio-economic infrastructure system; expand industrial parks, creating clean fund to absorb more investment projects, especially in important industries like auxiliary ones.

Reported by Khanh Vinh-Translated by K.T