Economic stimulus from infrastructure

Update: 26-04-2023 | 12:44:44

According to provincial competitiveness data (PCI), in 2022, Binh Duong ranked third in the list of localities with the best infrastructure index in Vietnam. Although it did not include in the calculation and ranking of PCI, it is an index that provides useful information for businesses and investors in deciding on the investment environment.

Infrastructure investment

The infrastructure index was not included to calculate PCI, and this is a disadvantage to Binh Duong. Previously, from 2015 to 2021, Binh Duong was always the leading locality in the country in terms of infrastructure quality index. In 2022, Binh Duong was still in the top 3, along with Quang Ninh and Ho Chi Minh City.

The infrastructure index is evaluated based on the combined collection of official information sources from state agencies and information sources from enterprise surveys on infrastructure quality. The localities that are highly appreciated by enterprises for the quality of economic management are also those with better infrastructure quality. The infrastructure index is a source of aggregated data that reflects the assessment of the quality of four basic infrastructure areas related to production and business activities of enterprises. These are industrial zones and clusters; road systems; basic utility services in telecommunications and energy; access and application of information technology. Therefore, this is also a very useful reference source for businesses as well as policy makers.

With synchronous and modern infrastructure, Binh Duong has attracted investment of many large enterprises and multinational corporations. In photo: Binh Duong's industrial park infrastructure meets the needs of investors.

About the reason why LEGO Group chose Binh Duong to set up its production factory, Preben Elnef, Vice President of LEGO Group and General Director of LEGO Manufacturing Vietnam Co., Ltd., said that many localities in southern Vietnam have the same location and conditions as Binh Duong, but Binh Duong itself has certain advantages over other provinces and cities. One of the advantages is that Binh Duong has built an infrastructure system that is very suitable for high-tech production activities, including a support system to reduce waste as well as schools for children of workers and social housing. This is very important, and it will be an ecosystem that aligns with sustainability goals of LEGO Group and many other investors.

Increase attractiveness

Despite many difficulties and multi-dimensional challenges, in 2022, FDI inflows continued to flow strongly into Binh Duong with more than 3 billion USD. In the first quarter of 2023, the total FDI capital of new registration, adjusted and contributed capital to buy shares across the province reached 437.7 million USD. According to investors, Binh Duong is still a favorable destination in FDI attraction. This shows that, in addition to the improved business investment environment, the infrastructure of industrial parks and transport infrastructure of Binh Duong is increasingly promoting its advantages, attracting investors, expanding factories and workshops, maintaining the chain of production and business activities.

With a convenient location, wide and airy systems, and preferential policies and mechanisms, the province's industrial zones continue to create a strong attraction for investors. This is one of the important resources contributing to the common growth of the province. According to Nguyen Trung Tin, Head of Management Board of Provincial Industrial Parks, Binh Duong currently has 29 IPs with a total area of more than 12,660 hectares and has put 27 IPs into operation, with an occupancy rate of over 91.28%. In the first quarter of 2023, most enterprises in industrial zones operated stably. Therefore, existing and new industrial parks need solutions to improve their competitiveness to take advantage of the increasing demand.

According to Department of Planning and Investment, in order to continue building and developing infrastructure, gradually forming the first layer in the Binh Duong Innovation Zone project, the province continues to mobilize all investment resources to build synchronous and modern infrastructure together with industrial - service - urban development. To drastically implement compensation and site clearance work, especially investment procedures for Ring Road 3, Ring Road 4, and Ho Chi Minh City - Thu Dau Mot - Chon Thanh expressways, and to renovate National Highway 13, Bach Dang 2 bridge, North Tan Uyen - Phu Giao - Bau Bang route... to increase inter-regional traffic connectivity. Research and develop waterway transport, port clusters, railways and smart logistics to reduce pressure on road routes.

In terms of infrastructure, besides the two dynamic economic axes of National Highway 13, My Phuoc - Tan Van roads, and inter-regional transport routes such as National Highway 14, Ring Road 4, the province is promoting investment in more key projects in the northern zone. Notably, Duc Hoa - Chon Thanh expressway, when completed, will synchronously connect with Ho Chi Minh Road, National Highway 22, and Trans-Asia Road, forming the third driving force of Binh Duong's economic development, stretching from Binh Phuoc down to Ho Chi Minh City, provinces of the Mekong Delta and to Cambodia; The route My Phuoc - Tan Van welcoming Long Thanh international airport is a thoughtful preparation step in attracting investors to the province.

Currently, Binh Duong is assessed by the Central Government as one of the leading and successful localities in the cause of industrialization, modernization and urbanization, continuing to make important contributions to the Southern key economic region and the whole country.

Reported by Ngoc Thanh - Translated by Ngoc Huynh

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Economic stimulus from infrastructure

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