Be confident to welcome new FDI inflows

In the eventful year 2022, FDI capital continued to pour strongly into Binh Duong. It is worth mentioned that high-quality FDI flows from the world's leading corporations into Binh Duong. This opens a great encouraging opportunity for Binh Duong to deeply believe in a new prospect in 2023.

Production activities at Uchiyama Vietnam Company (VSIP 1).

Destination of FDI capital flow

Recently, at a meeting of the provincial leaders with the delegation of Toyama prefecture (Japan), Nitta Hachiro, Governor of Toyama prefecture, said that the Toyama prefectural government has conducted a survey of their investment deamands, and found that Vietnam is the first country that their investors choose, including Binh Duong. Japan currently ranks second among 65 countries and territories having investment projects in Binh Duong with total capital of nearly 6 billion USD, accounting for nearly 15% of total foreign investment in the province.

During a discussion about the investment expansion plan in Binh Duong, Hashimoto, Chairman of Sharp Corporation, assessed Binh Duong as a locality with an attractive investment environment that is suitable to Sharp's requirements. This group has 2 manufacturing factories located in VSIP 1 and VSIP 2. In particular, in the coming time, Sharp will continue to expand investment and build one more large-scale factory, orients towards high-tech and advanced products, such as manufacturing and processing electrical products, high-tech components, smartphones, home electronics, health products, etc.

Not only investors from Japan, but most investors from other countries also believe in the prospect of overcoming all difficulties and economic development of Binh Duong province in the future. Charles R.Kaye, Global General Director of Warburg Pincus Group (USA), said that in Binh Duong, Warburg Pincus has had four-year experience in building a joint venture project with Becamex IDC. Up to now, the project has developed successfully. Currently, with 1.5 million m2 of floor finished, this is the foundation for Warburg Pincus Group and Becamex IDC to continue the cooperation in new projects on cross-border e-commerce platform and some other projects.

Many great opportunities

Notably, recently, Binh Duong is gradually moving to attract high-quality investment capital. Many European investors, including Denmark, are choosing Binh Duong as a production base. In 2022, among countries and territories investing in Binh Duong, Denmark takes the lead with a large-scale Lego project with a total investment of over $1.3 billion, accounting for 42.8% total investment capital in the province.

Right after Lego Group decided to choose Binh Duong as their investment destination and built a new factory, Pandora Group, a Danish jewelry brand, continued to sign an agreement with the province to build a new jewelry manufacturing factory in VSIP 3, with a total investment capital of over 100 million USD. This project is expected to start construction in early 2023 and start production at the end of 2024. This is Pandora's third facility around the world, and their first production facility built outside of Thailand.

Recently, Binh Duong has also signed a memorandum of understanding with THACO to build a supporting mechanical industrial park in the province, with an estimated investment of about VND 26,000 billion. This is an industrial zone specializing in supporting industries to attract more FDI inflows into the province.

As one of the earliest foreign investors present in Binh Duong, VSIP Industrial Park Joint Venture Company Limited is a joint venture between Sembcorp Group (Singapore) and Becamex IDC Corporation with more than a dozen projects across the country.

Nguyen Phu Thinh, General Director of VSIP Industrial Park Joint Venture Company Limited, said that VSIP Group will continue to expand new IPs to welcome more "eagles", towards sustainable standards, raise the development level of the company from a simple industrial park model to a green, smart and sustainable model, typically VSIP 3, which has started construction in 2022 in Binh Duong.

The advantages for Binh Duong to attract FDI are undisputed, the important thing now is how to prepare for and seize more opportunities from the investment wave in the coming time. Vo Van Minh, Chairman of the Provincial People's Committee, said that with a determination to build a people-centric government; take administrative reform and improve the investment environment as an important step, Binh Duong is an attractive destination for foreign investors.

“Not only improving the investment environment, developing infrastructure, connecting traffic, improving the quality of human resources… Binh Duong also actively builds and promotes Binh Duong’s image to the world. It is this effort plus available advantages, we believe that investors are really satisfied when investing, as well as continue to promote and expand the scale and quality invest in Binh Duong in the near future," said Vo Van Minh, Chairman of the Provincial People's Committee.

In 2022, Binh Duong attracted an additional US$3.14 billion (up 47.3% over the same period). Cumulatively, the province has 4,082 FDI projects with a total capital of nearly 40 billion USD, ranking second in the country in attracting FDI, only after Ho Chi Minh City. This result continues to be an important driving force for the socio-economic development of the province in 2023 and the following years.

Reported by Ngoc Thanh - Translated by Ngoc Huynh