FDI capital in Binh Duong has recently focused on auxiliary industry. This has contributed to increasing the localization rate, reducing the prices of products, raising competitive ability and promoting investment attraction in other fields. 

Production of hi-quality cotton at KyungBang Vietnam Co.Ltd. contributes to raising the competitive ability of Vietnam’s garment and textile sector

Investment capital on rise

Provincial Industrial Parks (Ips) Management Board said that KyungBang Vietnam Co.Ltd. under KyungBang Corp., one of South Korea’s top yarn and fibre manufacturers was allowed to raise its investment capital by more than US$54.2mln for production expansion in Bau Bang IP in Q1 2014. Prior to that, the company put its automated yarn and fibre manufacturing plant with a total investment capital of US$40mln for the first phase.

The capital increase of KyungBang Vietnam Co.Ltd. for production expansion will satisfy Vietnam’s demand for materials in the field of garment and textile, one of the country’s main export industries at present. This is also among Binh Duong’s top three export industries. Hence, the great investment of the company is of great significance for Vietnam’s garment and textile industry.

In 2014, the Japan-invested Wonderful Saigon Electrics Co.Ltd. operating in VSIP I specialized in manufacturing camera modules for mobile phones, all kinds of electronic circuit boards (PCB) using for next-generation network equipment has increased its investment capital by US$210mln.

Along with the above-mentioned enterprises, Binh Duong has also absorbed many other enterprises in auxiliary industry. For example, the Japan-invested Tanaka Ai Vietnam Co.Ltd. has spent US$20mln on manufacturing materials for cosmetics industry. The Japan-invested Kawasaki Heat Metal Vietnam Co.Ltd. has also poured US$8mlb into production of metal parts relating to thermal treatment system such as baskets, bags for containing equipments; treating thermal metal...

Positive impacts

The effectiveness of auxiliary industry in industrial manufacture is very great. The South Korea-invested Suntech Vina Co.Ltd. specialized in manufacturing various rear-view mirrors and other relevant components was put into operation in My Phuoc IP 3 in February 2013. With only US$4mln in investment capital, the company’s factory reaches the annual capacity of around 3 mln products for exporting into Russia and other European countries.

Similarly, with only US$2mln in investment capital and 15 workers, the Japan-invested Kahoku Lighting Solutions Vietnam Co.Ltd. in Dong An IP have effectively worked with hi-technologies applied in production of various lamps for medical, electronics and aviation sectors.

As surveyed, Binh Duong has recently lured a series of investment projects in auxiliary industry. This is a good sign for the development of the province because auxiliary industry not only creates a high industrial value, but also helps the province absorb many other industries. Lee Kap Soo, General Director of KyungBang Vietnam Co.Ltd. said that Bau Bang where his company built its hi-quality cotton factory would become a center of Vietnam’s fabrics and textile.

According to many enterprises, along with well-built infrastructure, favorable investment climate, their top concern at present is workforce for auxiliary and high-tech industries. All are well implemented by Binh Duong with many advantages. Also thanks to this, Binh Duong has drawn many projects in auxiliary industry.

Auxiliary industry reached a great proportion of total FDI capital flowing into the province in Q1 2014. Province-based VSIPs lured nearly US$441mln in FDI capital, mostly from projects in the domains of hi-tech electronics, medicine, hi-class consumer goods…Among them, projects in auxiliary industry were most notable.

Reported by T.Minh-Translated by K.T