Binh Duong has recently seen a strong growth in auxiliary industries. This is a good sign as auxiliary industries have promoted many other industries, contributing to increasing competitiveness, reducing trade gap and luring more investment projects…

More auxiliary projects

The Hongkong-invested Zhu Rui Vietnam Co.Ltd. in Ben Cat district-based Viet Huong 2 Industrial Park (IP) has just spent US$10mln on manufacturing various footwear soles and moulds. Realizing that this is a potential field, the company has decided to make investment in this field, according to company general director Xie Zu Hong.

Meanwhile, the South Korea-invested S.I Casting Vietnam Joint Stock Company has also just poured nearly US$2.5mln into production of components for motor vehicles in Rach Bap IP. 

Being put into operation in June 2013, KyungBang Vietnam Co.Ltd. has contributed to helping Vietnam’s garment and textile sector raise its competitive ability.

According to statistics by provincial People’s Committee, the province in the first half of the year absorbed more than US$1bln in FDI capital. Of the total figure, there was a strong increase in auxiliary industries. Particularly, the Japan-invested Tanaka Vietnam Co.Ltd. spent US$20mln on producing materials for cosmetic sector. The Taiwan-invested Lausdeo Vietnam Co.Ltd. poured VND18mln into production of components for Lithium batteries. The Japan-invested Wonderful Saigon Electrics Co.Ltd. of Japan also raised its investment capital by US$210mln. The company specializes in manufacturing camera modules for cell phones, high-capacity integrated circuits, and printed circuit boards for use in next-generation network devices.

Noticeably, KyungBang Vietnam Co.Ltd. in Bau Bang IP continued raising its investment capital by US$54.2mln for production expansion. Prior to that, the company invested US$40 mln to build one fibre plant in an area of 160,000sq.m with a production scale of 6,000 tons of products per year. The factory is equipped modern machines imported from Riter in Switzerland and Schlaphost in Germany with the capital of US$40 mln in the phase I. Currently, KyungBang Vietnam factory is the most modern one in Vietnam producing cotton fiber by high technology with the scale of 25,920 spindles.

Positive impacts

It is very easy to realize the investment effectiveness of auxiliary industries in the province. With only nearly 70 laborers, the South Korea-invested DJV Co.Ltd. in My Phuoc 3 IP, which is specialized in manufacturing LED monitors and car components for the world’s great corporations, has reached its total annual export turnover of more than US$12mln.

Although KyungBang Vietnam Co.Ltd.’s factory was put into operation in June 2013, it can provide 6,600 tons of high quality cotton fiber per year for textile and garment companies in Vietnam to produce export products with a total value of hundreds of billions of dong, contributing to decreasing trade gap and raising the competitive capacity of the country’s garment and textile sector.

With the strong investment of FDI enterprises in industrial industries, the province’s key export industries of garment & textile, woodwork, electronic components… have reached positive changes.

The rapid development of auxiliary industries has also contributed to upholding the province’s effectiveness in industrial production, especially reducing trade gap and increasing enterprises’ competitiveness. In the first half of the year, the province’s trade surplus reached nearly US$1.3bln. According to Mai Hung Dung, Director of provincial Department of Planning and Investment, the evolution of auxiliary industries will help the province absorb more investment projects.

Tran Van Lieu, Head of provincial Ips Management Board said that the province has zoned more than 300 hectares in Bau Bang IP with well-built infrastructure for the development of auxiliary industries. This will be a great advantage for enterprises in auxiliary industries.

Whilst, according to Le Thanh Cung, Chairman of provincial People’s Committee, the province will announce the planning of specialized area on production materials in association with auxiliary industry development to welcome the Trans-Pacific Strategic Economic Partnership Agreement (TPP). This will further create favorable conditions for the province to call for investment while making positive impacts on the local industrial production for sustainable development.

Reported by T.Minh-Translated by K.T