Ips, a driving force for economic development

Update: 04-12-2014 | 11:26:58

Part 2: From enterprises’ point of view

Province-based industrial parks (Ips) have strongly absorbed investment capital, especially FDI capital. This showed that they have been very attractive to investors. Many enterprises have also felt very satisfactory about investment climate herein.

Attractive to new investors

Thanks to well-built infrastructure plus advantages from the local investment climate, province-based Ips have reached a sharp increase on FDI capital flow only for a short time. So far, among 2,367 FDI projects capitalized at US$20.3bln invested in the province, 1,361 have flowed into province-based Ips with total investment capital of US$12.2bln, accounting for nearly 57.5% in total number of projects and nearly 60.1% of total amount of capital.

Pharmaceutical and cosmetic products being manufactured at Rohto-Mentholatum Vietnam Co.Ltd. at VSIP 1

According to foreign investors, they must make careful surveys on Ips before selecting them for investment. As a new investor in Binh Duong, Medochemie Pharmaceutical Co.Ltd. spent US$16mln on building a pharmaceutical factory at Vietnam-Singapore 2 IP in 2014. Pittas Konstaninos, Regional Director of the company said: “After many careful surveys, we realized that Binh Duong has a good investment climate with modern infrastructure, especially fully built Ips plus many other advantages. Hence, we decided to make investment in the province”.

One of the biggest FDI projects flowing into province-based Ips in 2014 was Nam Phuong Textile Co.Ltd., a joint venture between Hong Kong’s Haputex Development Limited and Viet Huong Investment and Development Joint Stock Company. The company spent US$120mln on building a textile factory at Viet Huong 2 IP.

Marcus IP, General Director of Nam Phuong Textile Co.Ltd. said that his company decided to select Binh Duong for investment, due to having well-built infrastructure, an abundance of clean land fund...

Investment capital increased

Many operational enterprises at province-based Ips have also decided to raise investment capital for production expansion.

Hong Kong’s Esquel Garment Corporation raised its capital by US$35mln to broaden production after 14 years of effectively operating at VSIP 1. Noticeably, KyungBang Vietnam Co.Ltd. under Rok’s KyungBang Group poured the largest additional capital amount into production. In May 2013, the company put its fibre plant into operation with investment capital of US$40mln for the first phase. The company decided to raise its capital by US$54.2mln for production expansion only after one-year operation. 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.

According to Lee Kap Soo, General Director of the company, Binh Duong has a favorable investment climate because of having well-built Ips, which is in line with the company’s long-term development goal and constant development capacity.

The above results are seen as good demonstrations about enterprises’ satisfactory for Ips in Binh Duong, according to provincial Ips Management Board.

Reported by Trong Minh-Translated by K.T

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Ips, a driving force for economic development

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