Binh Duong creates favorable conditions for businesses to invest, expand production and business

On November 17, Binh Duong Provincial People's Committee held a dialogue conference with Korean businesses in the province. Chairing the conference were Nguyen Van Loi, Member of the Party Central Committee, Secretary of the Provincial Party Committee, Head of the Provincial National Assembly delegation; Vo Van Minh, Deputy Secretary of the Provincial Party Committee, Chairman of the Provincial People's Committee; Shin choong Il, Consul General of Korea in Ho Chi Minh City; Kim Jin Woo, Chairman of the Korean Business Association in Binh Duong.

Leaders of Binh Duong Provincial Tax Department responds to proposals of Korean businesses at the conference.

 To share difficulties

At the conference, leaders of the Department of Planning and Investment give information about the local socio-economic situation. Accordingly, during the first 10 months of 2023, the province's socio-economic situation gained some positive results. Gross product in the province (GRDP) is estimated to increase by 6%, GRDP per capita reached VND172 million. Economic structure of industry - service - agriculture - product tax minus product subsidies with corresponding proportions of 66.17% - 23.83% - 2.62% - 7.38%. Binh Duong currently ranks 2nd in the country in terms of FDI attraction, after Ho Chi Minh City. Among these, Korea ranks second in terms of the number of projects with 769 projects and a total investment capital of US$3.3 billion.

During the dialogue, in response to questions, suggestions, and recommendations from the Business Association and Korean businesses related to production and business activities, labor issues, and foreign experts, provincial departments and branches have received and responded, gave deep answers.

Pham Van Tuyen, Deputy Director of Provincial Department of Labor, War Invalids and Social Affairs, said that due to some difficulties in personnel as well as problems in the process of implementing Decree 70/2023/ND-CP of the Government, the handling of administrative procedures related to foreign workers in recent times has been slow compared to current regulations. The Department is continuing to increase human resources, work overtime, and rebuild foreign labor management software combined with information technology applications to speed up work progress to ensure early handling of documents according to regulations.

In response to recommendations about difficulties in tax refund of businesses, Nguyen Van Cong, Director of Provincial Tax Department, said that based on current legal regulations, operating businesses considered for VAT refund by tax authorities are in two cases: tax refund for investment projects and goods, and export services. Currently, value-added tax refund for on-site exported goods and services is a problem that is of concern to businesses, including Korean businesses. The Provincial Tax Department reported and had direct working sessions with business representatives and proposed problems to the National Assembly’s Finance and Budget Committee on on-site export issues related to Government and Ministry of Finance’s regulations.

“To accompany and remove difficulties for businesses, the Provincial Tax Department has accelerated the tax refund process for businesses that fully meet the conditions prescribed by law, ensuring timely implementation according to current regulations (over 15,000 billion VND in value added tax was refunded in 2023). Particularly for some cases that still have problems, the tax authority reported them and when there is direction from competent authorities, they will promptly resolve them, contributing to helping businesses recover and develop," said the Director of Provincial Tax Department.

Support provided for production expansion

Song Kwang Sun, General Director of Kolon Industry Co., Ltd. (Bau Bang Industrial Park), said that currently the biggest problem for businesses is the problem of electricity for production. “To meet full capacity production, Kolon needs to provide 17.8MW of electricity capacity as applied. According to information, the installation work of pillar T52 was completed at the end of September, but the installation of the line is currently delayed. In 2024, the company has filed an application to expand investment, looking forward to receiving support from departments and branches to quickly deploy as planned," Sun proposed.

Nguyen Thanh Ha, Deputy Director of Provincial Department of Industry and Trade, said that to ensure power supply for Bau Bang district and surrounding areas, the electricity industry is investing in the construction of 110kV and 220kV power grid projects, in accordance with the Electricity Development Plan of Binh Duong province for the period 2016-2025, with a vision for 2035, approved by Ministry of Industry and Trade. However, in recent times, due to many obstacles in compensation and site clearance, these projects have not yet been completed to be energized. Currently, the industry and trade sector and power companies are proactively and actively coordinating with localities to continue to resolve obstacles in site clearance to speed up construction progress to soon complete energization and put into operation the above mentioned projects as soon as possible.

Speaking at the conference, Nguyen Van Loi affirmed that the province is always committed to creating all conditions for the business community in general and Korean businesses in particular to conduct production, business and trade activities most smoothly. The province will fully support production and business expansion activities. In the spirit of sharing, the Provincial Party Secretary requested that departments and branches continue to pay close attention, sympathize, and remind businesses to well implement provisions of law on production and business...

Concluding the conference, Chairman of Provincial People's Committee Vo Van Minh said that following instructions of the Secretary of Provincial Party Committee, Provincial People's Committee will fully absorb and urgently research to find solutions to remove difficulties and problems of Korean businesses. In the coming time, the province will continue improving the investment environment, enhancing competitiveness, and promoting support for business development in the province in general.

Reported by Tieu My - Translated by Ngoc Huynh