Foreign investment capital continues to flow strongly into Binh Duong

Binh Duong has been one of the prominent localities of the country in terms of FDI attraction. This result shows that the province still has many advantages in FDI attraction thanks to good infrastructure, stable human resources, efforts to reform administrative procedures and dynamism in investment promotion.

Increase attractiveness

At a recent meeting with provincial leaders, Mr. Yeh Ming Yuh, General Director of Polytex Far Eastern Co., Ltd (Bau Bang Industrial Park), said that in the third quarter of 2023, the company will continue to pour more than $250 million into Binh Duong. Thus, after the third capital increase, Polytex Far Eastern became the largest FDI project in Binh Duong.

In 2021, despite being affected by the Covid-19, Polytex Far Eastern (Vietnam) believed in increasing its investment capital by 610 million USD, the total investment capital after the increase was $1.37 billion. In the midst of many difficulties due to the impact of the pandemic, in 2021, Polytex Far Eastern's revenue reached growth rate of 34.3% ($630 million); In 2022, the revenue of this firm also reached about $755 million.

Making efforts to overcome difficulties, many firms in Binh Duong rise up strongly. In photo:  Manufacture at Yazaki EDS Vietnam Co., Ltd

Regarding the construction of the third investment expansion project, Mr. Yeh Ming Yuh shared that the company will invest in the expansion of production line with super durable yarn products (applied in the production of safety belts, airbag, tire lining, etc.). Responding to green transformation in production, the company will also build a solar power plant to provide electricity for production. Polytex Far Eastern Company is committed to investing in Binh Duong towards green transformation, sustainable development, training high-quality human resources and joining hands with the province in enhancing social responsibility to protect the environment and workers.

According to Provincial Department of Planning and Investment, in the first 6 months of 2023, there were 20 countries and territories investing capital in Binh Duong, of which the largest new investment project belonged to Pandora Group (Denmark) with investment capital of more than $163 million, accounting for 16.7% of total registered capital. Regarding capital contribution to purchase shares, the Netherlands ranked first with two projects with a capital of $321.5 million, accounting for 33% of the total registered capital; followed by Singapore, Hong Kong, Taiwan, the United States...

Accumulated to June 30, 2023, there were 65 countries and territories registered to invest in Binh Duong. Of which 10 countries and territories are Taiwan, Japan, Singapore, Samoa, Korea, British Virgin Islands, Hong Kong, China, Denmark, and the United States with a total registered investment capital of more than $33.57 billion, accounting for 84% of the total FDI capital in the province. Taiwan ranks first with 870 projects with a total registered capital of nearly $6.3 billion, accounting for 21% of the number of projects and 16% of the capital. Japan ranked second with 346 projects, total registered capital of more than $5.9 billion, accounting for 8% of the number of projects and 15% of the capital. Singapore ranked third with 283 projects, with a total registered capital of $5.53 billion, accounting for 7% of the number of projects and 14% of the capital.

Actively create favorable conditions

Despite difficulties and challenges of the global economy, Binh Duong continues to be one of the leading localities in the country in attracting FDI capital. The provincial authorities regularly organize surveys, learn about difficulties, problems and proposals of firms and foreign investors, strives to solve problems immediately. At meetings with businesses, provincial leaders always direct specialized departments and branches to actively coordinate and support businesses and investors to solve difficulties and problems, facilitate more efficient production, and at the same time deploy new projects quickly and conveniently.

According to Institute of Policy Management, Binh Duong is the first locality to cooeprate with Institute of Policy Administration to conduct a synchronous survey of FDI firms in the area to develop an attraction strategy while the global minimum tax rate is going to be applied. Results of this survey will be sent to the Prime Minister's Working Group on the global minimum tax rate to help the Government and the National Assembly make proactive decisions in the law-making process.

The global minimum tax policy is required to apply from January 1, 2024. The global minimum corporate tax rate of 15% is tending to confuse the strategy of investment locations, the way multinational companies operate and Vietnam's strategy to attract FDI. The global minimum tax rate affects not only some businesses but also sets new requirements for the business community in general and investment attraction policies in particular, that is to actively develop new strategic direction.

Mai Hung Dung, Member of the Provincial Party Standing Committee, Permanent Vice Chairman of Provincial People's Committee, said that in the economic development process of the province, FDI enterprises are always an external source of important roles and positions.  Therefore, Binh Duong always creates the most favorable conditions for FDI firms to operate effectively. In order to create a stronger change in the business environment, improve competitiveness, contribute to the successful implementation of goals and tasks of the socio-economic development plan in 2023, many solutions to attraction of FDI inflows are being enhanced by Binh Duong in the coming time. In particular, the province still focuses on creating favorable conditions for investors, promoting the advantages of a stable investment environment and improving competitiveness. 

Over the first 6 months of 2023, Binh Duong attracted $967.3 million including 45 new projects, 20 capital increase projects and 70 capital contribution projects. Accumulated to June 30, 2023, the province had 4,121 investment projects from 65 countries and territories with a total registered capital of over $40 billion. Binh Duong is currently ranked second in the country in FDI attraction, after Ho Chi Minh City.

Reported by Ngoc Thanh - Translated by Ngoc Huynh