Perfecting infrastructure, increasing investment attraction

In the first seven months of 2022, Binh Duong's foreign direct investment (FDI) attraction reached more than US$2.54 billion, ranking first in the country. This shows that in addition to the improved investment climate, the province’s infrastructure of industrial parks (IPs) and connected traffic infrastructure are increasingly upholding their advantages, attracting investors, thereby greatly contributing to fulfilling the local economic growth target.

Beyond year’s plan

According to provincial Department of Planning and Investment (DoPI), in 2022, the province is expected to attract about US$ 1.8 billion in FDI capital. Particularly, province-based Ips will strive to attract US$ 1.2-US$1.3 billion in FDI capital, VND 1.1million-VND1.2 trillion in domestic investment capital, and VND3.12-VND4.75 trillion in construction investment capital. As a result, over the past 7 months of 2022, the province attracted more than US$2.54 billion (up 74% over the same period). Particularly, province-based IPs attracted more than US$ 1.7 billion in FDI capital, reaching 131% of the year’s plan. So far, the province has lured 4,059 FDI projects with a total capital of US$ 39.6 billion.

Nguyen Van Loi (front row, right), member of the Party Central Committee, Secretary of provincial Party Committee, Head of provincial National Assembly deputy delegation and provincial delegation to conduct a field inspection tour to prepare for handing over the site of the phase 1 to Lego Group in order to deploy its project at VSIP 3

Mai Hung Dung, member of provincial Party Standing Committee, Permanent Vice-Chairman of provincial People's Committee said that with their synchronous and modern infrastructure system with a convenient location being adjacent to important traffic axes connecting with Ho Chi Minh city and surrounding areas, province-based IPs have attracted many scale-large enterprises and multinational corporations. As a result, in the first months of 2022, the province's socio-economic development continued gaining positive results in all fields, despite facing many difficulties.

In the period of 2020-2025, the province has set a target of developing sustainable IPs under the "3-in-1" model (Ip - urban area - service area). With this development orientation, the province is further strengthening land fund for IP development, further mobilizing all investment resources to build a synchronous and modern infrastructure system in association with industrial – urban-service development, contributing to attracting more quality investment capital flows from domestic and foreign economic sectors.

New opportunities from synchronous and modern infrastructure

In addition to promoting infrastructure construction, drastically improving the investment climate, creating favorable conditions for enterprises to work and strongly attracting FDI inflows, Binh Duong determined that industrial manufacturing continues to be its key development sector. In the coming period, the province's investment attraction will be carefully selected to get high-tech projects that are less labor intensive with high added value. Province-based IPs are continuing improving their technical infrastructure to welcome a new wave of FDI investment.

With a synchronous infrastructure system, province-based IPs have become a "brand name", attracting many large-scale enterprises and multinational corporations

Along with that, in order to create the momentum for a breakthrough, the province is setting up a plan to generate revenue from land fund for socio-economic development through starting construction of VSIP III, social housing areas, Bach Dang 2 bridge, the expanded National Highway 13; urgently preparing conditions and procedures for the implementation of the belt road 3...Trinh Hoang Tuan Anh, Deputy Director of provincial Department of Planning and Investment said that industrial manufacturing continues to be the local key development sector. In the next period, the province's investment attraction will be carefully selected to have high-tech projects that are less labor intensive with high added value and auxiliary ones for industrial and urban development.

Provincial Industrial Parks’ Management Board is also continuing reviewing and well doing the task of management and licence in IPs through promoting administrative reform and handling procedures, improving the investment climate; focusing on advising and promoting the establishment and development of 2 to 4 new IPs in the period of 2021-2025, especially making investment in infrastructure development of the local IPs under the plan and building a sci-tech IP  in Bau Bang district.

According to Nguyen Chi Toan, Marketing Director of VSIP Group, the trend of expanding production of investors in IPs is increasing. For competition, localities need new planning to attract investors and building high-quality IPs is necessary. In fact, VSIP has started to transform its business model from a pure IP into an industrial-service-urban area for all projects since 2007. VSIP's model is industry - urban - service, in which industry is only a precursor to serve the economy.

Reported by Ngoc Thanh-Translated by Kim Tin