Binh Duong opens door to welcome investors in supporting industries

In order to develop a sustainable industry, Binh Duong has been actively supporting enterprises to develop supporting industries, to increase the industrial product value of enterprises in the country, helping local industry deeply involved in the global value-added chain.

Motivation to attract investment

At the end of 2022, Provincial People's Committee signed a memorandum of understanding with Truong Hai Group Joint Stock Company (THACO) to build an industrial park for mechanical support in Binh Duong, with an expected investment scale of about 26,000 billion VND (equivalent to more than 1 billion USD). Accordingly, in 2023, Truong Hai Group pools its resources on researching the project, and Provincial People's Committee will create favorable conditions and support the investment and construction procedures of the project.

Binh Duong is in the top localities that have strong development of supporting industry in the country (Ho Chi Minh City, Hanoi, Dong Nai, Bac Ninh and Binh Duong). The development of supporting industry has initially formed production links between domestic enterprises and FDI enterprises, while creating favorable conditions for domestic enterprises to gradually access advanced technologies and participate in the global value chain of this industry.

Production activities at Vietnam Kumho Tire Co., Ltd (My Phuoc 3 Industrial Park).

In the past time, in order to attract investors into the supporting industry, Binh Duong has prioritized and encouraged the development of supporting industries, and improved the capacity of supporting industry enterprises, in line with the province's socio-economic conditions. However, despite the advantage of synchronous and modern infrastructure compared to other localities, Binh Duong does not have a specialized industrial zone for supporting industries. Thus, if the supporting mechanical industrial park comes into operation here, it will help Binh Duong continue to become an attractive destination for many international corporations to invest, develop and produce supporting industrial products.

According to Do Minh Tam, General Director of Thaco Industries Mechanics and Supporting Industries Corporation, Binh Duong province has strengths to promote supporting industrial zones. The province has a strong business community, advantages in infrastructure, land fund, and the companionship and support of the government. Therefore, the supporting mechanical industrial park not only is embraced in the automotive industry but also expands to many other fields.

Develop in a focal direction

Located in the Southern key economic region, Binh Duong possesses favorable conditions for economic development, especially industry and supporting industries. In the province, there are more and more projects and large enterprises joining supporting industries. Up to now, the province has 29 industrial zones established out of a total of 34 planned industrial zones. The development of supporting industries in the province has gradually formed production linkages between domestic enterprises and FDI enterprises. According to statistics, currently the province has nearly 2,300 enterprises in supporting industries, including 442 textile enterprises, 172 leather and footwear enterprises, 593 wood processing enterprises, and 710 mechanical enterprises.

According to Provincial Department of Industry and Trade, supporting industry enterprises in the province are also supported by the Department of Industry and Trade to gradually join the supply chain, such as: creating linkages and specialization among enterprises in manufacturing, assembling and manufacturing auto parts and components in industrial zones and clusters; soon form a system of suppliers of raw materials and components, large projects, high technology content...

Mai Hung Dung, Permanent Vice Chairman of Provincial People's Committee, said that the development of supporting industries is an inevitable trend, not only serving industrial production of Binh Duong and the whole country, but also aiming for export, participating in global value chains. In order to develop a sustainable industry, Binh Duong has been actively supporting enterprises to develop supporting industries, to increase the value of industrial products produced by domestic enterprises.

In the coming time, Binh Duong will continue to prioritize the development of industries with high added value content, gradually increase the localization rate of products... In particular, to focus on developing supporting industries, soon complete planning of raw materials and auxiliary industries; continue to create favorable conditions for calling for investment, expanding production and trading projects in supporting industries.

To prioritize the development and upgrade supporting industries, Binh Duong has established an industrial park in Bau Bang district with a scale of over 1,000 hectares, gives priority to attracting investment capital in supporting industries, especially FDI projects. Up to now, some supporting industry projects from major corporations have been executed in this industrial park.

For example, the project of a factory to manufacture tires and airbags for cars with an investment of up to 1 billion USD, on an area of 42 hectares of Kolon Group (Korea), provides raw materials for automobile manufacturing industry; synthetic fiber production project of Polytex Far Eastern (Vietnam) Co., Ltd. with registered investment capital of 1,370 billion USD… In addition, a factory project specializes in sterile food packaging manufacturing from paper, plastic, aluminum of Tetra Park Binh Duong Joint Stock Company (Singapore), with registered investment capital of 124 million USD in VSIP II-A.

Reported by Ngoc Thanh - Translated by Ngoc Huynh