FDI in Binh Duong in the first half of the year exceeds USD 2.53 billion

In the first six months of 2022, Binh Duong province has strengthened the implementation of safe, flexible adaptation solutions and effectively control the COVID-19 epidemic while recovering and developing socio-economy. With many suitable solutions, Binh Duong continues to attract many domestic and foreign investors to research and invest. In which, foreign direct investment capital realized in the province reached the highest level compared to the first 6 months of previous years, which is an important driving force contributing to the growth in the first 6 months and the whole year of 2022.

Production activities at GS Vietnam Battery Co. Ltd. of VSIP 1

Newly registered capital and adjusted capital both increased sharply

According to the Department of Planning and Investment (DPI), in the first 6 months of 2022, the total newly registered foreign investment capital; adjusted and contributed capital to buy shares across the province reached over USD 2.5 million, equaling 180 % over the same period in 2021. Of which, 34 new projects were granted investment registration certificates with a total investment capital of USD 1.789 billion, equaling 407% of the same period in 2021; 12 times of projects with adjusted investment capital with a total additional registered capital of USD 16.6 million; 82 times of projects registered to contribute capital and buy shares with a total capital contribution value of USD 724.2 million, equal to 382% of capital of the same period in 2021.

Particularly, the industrial parks attracted 25 new investment projects, 23 registered capital contribution and share purchase projects with a total registered investment capital of USD 1.774 billion, equivalent to 135% of the same period in 2021, and accounting for 70% of the total foreign investment capital in the province. Outside industrial parks, 5 new investment projects, 12 capital adjustment projects, 59 registered capital contribution and share purchase projects have accounted for a total registered investment capital of USD 753.2 million, equivalent to 829 % over the same period in 2020, and accounting for 30% of the total foreign investment capital in the province.

According to the Department of Planning and Investment, the processing and manufacturing industry continues to attract the attention of foreign investors with 22 newly registered investment projects, which was 10 times of capital adjustment projects and 43 projects registered to contribute capital and buy shares with a total investment capital of USD 1.545 billion, accounting for 61.2% of the total registered investment capital. Real estate business ranked second with total registered investment capital of USD 964 million, accounting for 38.1% of total registered investment capital. Wholesale and retail sector, repairing cars, motorcycles and motorcycles ranked third with a total registered investment capital of USD 12.5 million, accounting for 0.5% of total registered investment capital.

In the first 6 months of 2022, 18 countries and territories registered to invest in Binh Duong. Denmark ranked first with a total registered investment capital of USD 1.318 billion, accounting for 52.2% of total investment capital; the Netherlands ranked second with a total registered investment capital of USD 608 million, accounting for 24.1% of total investment capital; China ranked third with total registered investment capital of USD 257 million, accounting for 10.2% of total investment capital followed by Japan, Taiwan, Hong Kong etc. With a large-scale Lego project with a total investment of over USD 1.3 billion, Denmark continued to rank third with total investment capital registered of over USD 1.32 billion, accounting for 12.2% of total investment capital.

FDI enterprises continue to lead the growth

According to Binh Duong Customs Department, in the first 6 months of 2022, the province's total import and export turnover reached nearly USD 32 billion. In which, export turnover is estimated at USD 19.181 billion, increasing by 10% over the same period in 2021; import turnover was estimated at USD 12.792 billion, decreasing by 5.8%; a trade surplus of nearly USD 6.4 billion was maintained. With this result, in the first 6 months of 2022, import and export activities recovered strongly, in the first 6 months of 2022, the trade balance of goods had a trade surplus of over USD 6.1 billion, in which the economic sector with foreign direct investment had a trade surplus of nearly USD 4.48 billion.

Notably, in the overall growth rate, the foreign direct investment (FDI) business sector continued to hold the leading role with the total export value of goods in the first 6 months of 2022 reaching over USD 15.4 billion, increasing by 9.2%. Exports are mainly in traditional markets such as the US, Korea, Japan, Taiwan, and Hong Kong. In which, the US market accounted for the highest proportion with export turnover of USD 6.478 billion, followed by the European Union market with more than USD 2.2 billion, Korea and Japan with more than USD 1.8 billion, Taiwan reached more than USD 1.4 billion, and Hong Kong nearly USD 1.4 billion.

Mai Hung Dung, Standing Deputy Chairman of the provincial People's Committee, said that following the recovery momentum from the end of 2021 after the impact of the COVID-19 pandemic, in the first six months of 2022, many FDI enterprises have stabilized and expanded production and business activities. Up to now, Binh Duong has always been one of the prominent localities of the country in attracting FDI. Notably, in the first half of 2022, although the COVID-19 epidemic still has many complications and multi-dimensional effects on investment activities, Binh Duong still attracted an estimated USD 2.53 billion.

The outstanding results in attracting FDI have been pervasive, contributing significantly to the "picture" of economic growth in the whole province. Confidence of FDI enterprises in the investment environment of the province is with more and more high-quality projects, following the green trend of using renewable energy as the Government's orientation to actively select and increase the quality and contribution of the foreign investment sector. The foreign-invested sector is still leading growth and is a major contributor to state budget revenue, and actively contributing to technology transfer, job creation as well as skill training for local workers in the province.

Accumulated up to now, Binh Duong ranks second in the country after Ho Chi Minh city in attracting foreign investment capital with 4,053 projects granted valid investment registration certificates with total registered investment capital of more than USD 39.55 billion, accounting for more than 9.3% of the total foreign investment capital of the country. The average project size is about USD 9.8 million.

Reported by Ngoc Thanh – Translated by Vi Bao