FDI attraction to exceed 5-year target

The 9^th provincial Party Congress’s Resolution (tenure 2010- 2015) set a target to attract $5 billion of foreign direct investment (FDI) in 5 years from 2011-2015. But just in 4 years, Binh Duong finished the target and attracted nearly $6.7 billion of FDI inflows.

Exceeding 34% target

During development process, Binh Duong always considers FDI as an important motivation to promote economic development. The 9^th provincial Party Congress’s Resolution (tenure 2010- 2015) set a target to attract $5 billion of FDI. But just in 4 years, Binh Duong finished the target and attracted nearly $6.7 billion of FDI inflows, including $889 million in 2011, $2.6 billion in 2012, $1.32 billion in 2013, $1.65 billion in 2014, and $180 million in just two first months of 2015. 

Up to now, Binh Duong province has attracted 2,412 FDI projects with total registered capital of $20.65 billion; including 1,404 projects investing in industrial clusters with total registered capital of $12.53 billion; and 1,008 projects outside industrial zones with a total registered capital of more than $8.1 billion. These results brought Binh Duong province to top 5 localities of the country in attracting FDI exceeding $20 billion (along with Ho Chi Minh City, Hanoi, Ba Ria - Vung Tau, and Dong Nai). Compared with target to attract $5 billion in the period 2011-2015, the province has exceeded 34% target.

Manufacture of medical equipment in a Japanese company VSIP 1 (Thuan An town).

FDI in Binh Duong mainly focus on industrial production, thus having large economic effects, especially creating high industrial production and export values. Only in 2014, FDI in Binh Duong created an industrial output value of VND130,068 billion, accounting for nearly 69.4% of provincial total industrial output; exports reached $14.62 billion, accounting for nearly 82.4% of provincial total export value. Particularly, FDI in auxiliary manufacturing industry has increased rapidly, contributing to provincial trade surplus of more than $4 billion compared to the last year. 

Effective solutions

In fact, from 2011, it has been not easy to attract FDI, because of the complicated common political economic situation. However, due to efforts of authorities and effective approaches, Binh Duong succeeded. Namely, the province has improved comprehensively socioeconomic infrastructure, reformed administrative procedures in all fields to assist investors. The province also focus on training high-quality human resources, while improving range of services to best serve investors; boosting marketing at potential countries. Besides, authorities have listened to businesses’ aspirations, opinions, and difficulties to help them in doing business efficiently. Thereby, businesses would choose to invest in Binh Duong.

Nam Phuong Textile Company’s CEO MR. Marcus IP said, while doing business, they had been assisted and helped by authorities. The company is planning to put fabric factory with total investment of $120 million into operation in 2015. “With these helps, we are very confident in the business environment in Binh Duong province. Therefore, we have accelerates construction to put the project into operation”, said Mr. Marcus IP. 

In 2015, the province sets the target to attract $1 billion of FDI with orientation towards increasing high-tech industries, decreasing labor-intensive industries; enhancing supporting industries, export good processing industry to gradually improve the processing industry’s competitiveness on international markets...

Since the beginning of this year, FDI attraction has continued to increase. In addition to registered capital, many large enterprises are completing procedures to pour hundreds million of US dollar into the province. This promises that Binh Duong will finish the annual target before the year-end; and FDI could exceed very high compared to target of the 9^th provincial Party Congress’s Resolution.

Reported by T.Minh – Translated by Ngoc Huynh