Creating favorable conditions for auxilary industries’development

Auxiliary industries on rapid growth

Mai Hung Dung, Director of provincial Department of Planning and Investment said that Binh Duong has recently absorbed many small and medium-sized FDI projects in industrial manufacture, especially in auxiliary industries. Noticeably, these projects have worked very effectively and made great contributions to the State budget. With their effective operation plus a favorable investment climate, many enterprises in this field have continued increasing investment capital for production expansion.

Fibre production of the South Korea-invested KyungBang Vietnam Co.Ltd. in Bau Bang Industrial
Park has contributed to supplying materials for Vietnam’s garment and textile sector

The attraction of many FDI projects in auxiliary industries is of great significance for the province, contributing to quickly decreasing the local import of materials for production and increasing the local trade surplus. Over the past five months, the province’s trade surplus was estimated at US$956mln. This has helped Binh Duong become a locality with the highest figure in trade surplus so far.

Noticeably, the province’s key export industries like garment, footwear, woodwork proccessing… have made a strong investment in auxiliary industries. The province’s auxiliary industries are in the period of accelebration to welcome the Trans-Pacific Strategic Economic Partnership Agreement (TPP). Hence, since early 2014, the province has absorbed more FDI projects in auxiliary industries, including the Hongkong-invested Zhu Rui Vietnam Co.Ltd. with total investment capital of US$10mln in Viet Huong 2 Industrial Park, the Japan-invested Tanaka Ai Vietnam Co.Ltd. with total investment capital of US$20mln…

Great advantage for enterprises in auxiliary industries

There is now a great advantage for enterprises in auxiliary industries. This is because the province has zoned and adjusted industrial parks (Ips) in the northern region to promote auxiliary industries.

According to Vo Van Cu, Director of provincial Department of Industry and Trade, the province’s key export industries like woodwork processing, garment-textile…intensively need materials for production. They intends to make a coherence in building up a specialized area with enough industrial auxiliaries for higher competitiveness. Particularly, the department and provincial Furniture Association are considering to select a location of 100 or 200 hectares in Phu Giao district or Tan Uyen town for building a specialized area for the local furniture sector.

Many other industries like garment & textile, footwear are also speeding up the linkage among their enterprises and associations. This will help uphold their investment efficiency, especially when Vietnam officially joins in the TPP agreement.

According to Tran Van Lieu, Head of provincial IPs Management Board, the province’s infrastructure of Ips is creating a great advantage for auxiliary industrial attraction. Athough province-based projects in auxiliary industries are small in scale, their disbursement rate of capital has reached 95%. It is predicted that there will be a surge in this field in the coming time.

In the coming time, according to provincial People’s Committee Chairman Le Thanh Cung, the province will further focus on calling for investment in auxiliary industries. The province has put focus on perfecting the zoning of specialized areas on auxiliary industries, supplying production materials for relevant enterprises in and out of the province. With the above preparations, province-based enterprises will catch investment opportunities and increase their competitiveness when Vietnam officially joins the TPP agreement, thereby contributing to promoting production and creating advantages for the province’s investment attraction in industrial manufacture.

Reported by T.Minh-Translated by K.T