Binh Duong economy after 8 years of WTO admission

At a production line of Showa Gloves Co.Ltd. in VSIP 1.

Part 1: Improvement of investment, increase of export

FDI capital surges

Possibly speaking, one of the most success of Vietnam after WTO admission lies in FDI capital attraction. With advantages of human resources, land, investment environment and more, Vietnam in a short time becomes the attractive destination for foreign enterprises.

With Vietnam’s achievements of FDI attraction, Binh Duong leads the country as one of localities luring many projects, capital sources. Especially, the provincial leaders continue to promote motivation, creation in leadership, management, construction of traffic, industrial park infrastructure. Therefore, Binh Duong has ranked fourth nationwide in FDI attraction with more than US$20bil.

Difference of FDI attraction during the past 8 years lies in quantity of nations and territories investing in the locality. Until now, many enterprises from the US, Germany, UK, Netherlands, Finland, Denmark and more bound for Vietnam for investment projects. As many as 39 nations and territories invest in the province.

Marcus IP, general director of Nam Phuong Textile Joint Venture Co.Ltd. just opening fiber plant capitalized at US$120mil said that after WTO admission, Vietnam economy gains a well growth and advantaged investment environment. In the coming time, Vietnam will ink Trans-Pacific Partnership Trade Promotion Agreement (TPP), so this is also a big reason for enterprises to invest in Binh Duong. “With such advantages, we believe that investment in Vietnam will bring efficiency. The company’s products will well compete in foreign markets”, Marcus IP affirms.

Impression on export surplus

Along with achievements of FDI attraction, after 8 years of WTO admission, the provincial export develops gigantically. In 2006, the provincial export reaches under US$5bil per year, but since 2007 the local export surges constantly with an average rate of nearly 20% per year.

In 2013, export reached more than US$14.44bil, in the first 10 months of this year, the locality won nearly US$12.8bil and it is expected that local export will reach US$16bil in this year.

One more advantage is that after WTO admission, Vietnam’s export market spreads up to 193 nations and territories, of which 160 WTO membership countries have relations of export with Binh Duong-based enterprises.

Thanks to focusing on hi-tech industries and support industries, local export products reach competition on the international market. Therefore, aside from traditional products such as handicraft, rubber latex, timber, footwear, agro-forestry sea food products, local export has more products with high competition capacity including electronics, motorbike, auto component, cosmetics and more. These new products account for a very high rate of local export.

After WTO admission, Binh Duong economy develops strongly, attracting investment capital sources and export effectively. These results are thanks to advantage of opportunity, well preparation of traffic, industrial infrastructure and among others.

Reported by T.MINH – Translated by A.C