FDI attraction gets thriving

Foreign direct investment (FDI) into Binh Duong has been increasing in both quality and quantity. Over the past time, the province absorbed a series of large-scale hi-tech FDI projects.

Attracting large-scale projects

Ngo Kien Hoanh, Head of Binh Duong-based Taiwan Business Association said that more and more foreign investors in general and Taiwanese ones in particular have selected Binh Duong as a destination for investment. Noticeably, in early 2015, the Taiwanese-invested Far Eastern Corporation decided to pour US$274mln into the province to build its yarn factory-phase 1.

Production of Kumco factory in TDM city-based Dai Dang IP

Cheng Chen Yu, CEO of Polytex Far Eastern Co.Ltd. said that that this investment aimed to wait in front for the Trans-Pacific Strategic Economic Partnership Agreement (TPP). Currently, Vietnamese market is very potential. The company is expected to raise its investment capital for phase 2 from US$700mln to US$1bln.

As a hi-tech project with methodical investment, the factory will contribute to improving technologies for textile-garment sector of Binh Duong in particular and of Vietnam in general.

Especially, as of late 2015, provincial People’s Committee handed over an investment licence to the Taiwanese-invested Cheng Long Binh Duong Co.Ltd. for building a US$1bln-paper factory. Covering 75 hectares, the factory is expected to generate 1 mln ton of industrial paper and 50,000 tons of household paper a year. This is the biggest FDI project in Binh Duong since 2015 and is also the second biggest FDI project herein so far after the Tokyu Binh Duong Garden City project.

In the first two months of 2016, Binh Duong attracted US$695mln in FDI capital from 33 projects, including newly-registered and extra-ones. They include Chain Yarn Vietnam Co.Ltd. with US$87mln; DeLicacy Industrial Vietnam Co.Ltd. in Bau Bang industrial park (IP) with US$100mln; SJF Vina Co.Ltd. with US$30mln in My Phuoc 3 IP…

Strong investment in auxiliary industry

Since 2015, there has been an increase in both quality and quantity of FDI projects in Binh Duong. Most of them have been implemented in Ips with methodical planning in line with the province’s overall development orientation. Specially, the province has attracted many projects in auxiliary industries from corporations, namely Far Eastern, DDK, Cheng Long…

According to Mitsuhiro Mori, Chairman of HCM city-based Japan Business Association, strengthening investment in infrastructure is a necessary step for Binh Duong to cater foreign investors’ requirements. Upon this, the province will continue being an attractive destination for Japanese investors, especially ones in the hi-tech, service and urban fields…

Whilst, Mr.Hoanh said: “We feel secure when pouring large-scale projects into Binh Duong. The local government and people’s friendliness and flexibility have won faith of Taiwanese investors in particular and foreign ones in general. Therefore, there was a constant increase in the FDI flow on hi-tech, auxiliary industries into the province over the past time”.

Binh Duong has been appreciated as one of the country’s localities in investment attraction during the industrialization process. To achieve better results, the province has continued speeding up investment marketing, especially in potential markets like Japan, South Korea…This has helped the province obtain a target of growth in both quality and quantity in investment attraction.

Possibly speaking, FDI capital was one of the province’s important sources to promote industrial-service and urban development over the past time. That’s reason why boosting this source is considered as one of the province’s major tasks. The strong growth of FDI flow over the past time is a good sign for the development process of Binh Duong in particular and the whole country in general.

From Dec.12, 2015 to Feb.2016, the province lured more than US$1.2bln in FDI capital, including US$952mln from 91 newly-registered projects and US$294mln from 57 extra-ones. The province has so far absorbed a total of 2,623 valid FDI projects with total registered capital of more than US$24bln and been among the country’s five localities with foreign investment attraction surpassing US$20bln.

Tran Thanh Liem, Vice-Secretary of provincial Party Committee cum Chairman of provincial People’s Committee pledged that the province will always create favorable conditions for enterprise to reap success. In the coming time, the province will opportunely and effectively execute policies regarding socio-economic development while improving competitive ability for international integration; mobilize all sources to perfect technical infrastructure. The province will also strength administrative reform, creating the best conditions for enterprises to work. All aim to help the province continue being a reliable and attractive destination for investors.

Reported by Khanh Vinh-Translated by K.T