Province-based IPs: Perfect infrastructure, effectively attracting investment capital

Province-based industrial parks (Ips) are implementing tasks, solutions drastically, flexibly, creatively and effectively. In the first quarter of 2022, despite facing many impacts from the Covid-19 pandemic, they still attracted a large number of enterprises to invest, expand factories, and maintain a chain of production and business activities, thereby making important contributions to achieving the local economic growth target.

Investment attraction on sharp increase

After being granted the investment certificate by the province on March 19, Thailand-invested A.J.Plast Vietnam Co. Ltd.’s project to produce two-dimensional oriented films (BO films) with investment capital of about US$33.3 million is being sped up construction in the expanded Bau Bang Industrial Park. Along with that, many FDI enterprises are also urgently investing in modern machinery lines, expanding production and business factories to increase productivity. For example, Saigon Stec Co. Ltd. spent VND 718 billion on machinery to produce electronic components; Polytex Far Eastern (Vietnam) Co. Ltd. invested VND521 billion in a yarn factory; De Licacy Vietnam Industry Co. Ltd. invested VND500 billion in yarn and fabric production machinery; Paihong Vietnam Co. Ltd. invested VND12 billion in machinery and equipment for fabric production; Dongil Rubber Belt Vietnam Co., Ltd. invested VND 123 billion in building a factory making rubber belts…

The increasingly perfect urban-industrial infrastructure not only helps Binh Duong attract investment capital, but also creates favorable conditions for enterprises to operate effectively

According to province-based IPs’ Management Board, up to now, all enterprises in province-based IPs have worked stably. It is estimated that in the first quarter of 2022, their realized investment capital was US$805 million, up 9.15% over the same period or 57.52% of the year’s plan. Of these, the foreign investment sector gained US$ 713 million (accounting for 88% of total), up 9.04% over the same period while the domestic sector reached US$ 92 million (accounting for 12% of total), an increase of 9.97% over the same period.

Lim Hua Tiong, General Director of Singapore-invested New Motion Industry Co. Ltd. said that capitalized at US$185 million, the company is specialized in manufacture of television screens, display screens and construction investment of warehouses, factories, warehousing services in Phu Tan Industrial Park. Currently, the project is urgently being implemented on schedule with the goal of completing about 40,00 sq.m of workshop in the second quarter of 2022. “Before implementing the project, we have surveyed many places and found that Binh Duong has favorable factors in terms of industrial park infrastructure, especially there is a very good investment environment, so I decided to choose Binh Duong for investment," said he.

Creating favorable conditions

Although being still affected heavily by the Covid-19 pandemic, province-based IPs are still attracting a large number of enterprises to invest, expand factories, maintain a chain of production and business activities and global supply. With many active support solutions from the province plus the efforts by enterprises in overcoming difficulties, production and business activities in province-based IPs have remained stable.

With many positive and effective solutions in economic recovery, province-based enterprises’ production and business activities are recovering, creating the added value of products, contributing to the local overall growth. In picture: Production activities at GS Battery Vietnam Co. Ltd. in VSIP 1

In the first quarter of 2022, the activities of enterprises in province-based industrial parks were on good recovery. There were over 200 enterprises registering to increase capacity and increase working hours from 200-300 hours/year. Attracting domestic investment capital achieved high results with more than VND 8.4 trillion, or 764% of the year’s plan; FDI attraction reached US$ 302 million or 25.13% of the year’s plan.

According to Bui Minh Tri, Head of provincial IPs’ Management Board, this is the result of the efforts to keep a safe area in the past period, as well as implementing measures on safe and flexible adaptation, effective control of Covid-19 pandemic in the current period.

In addition, the province has not only created favorable conditions for enterprises in terms of investment licensing procedures, but also facilitated their operational process as well as implementation of new investment projects. In addition to ensuring safety for Covid-19 prevention and control, enterprises in province-based IPs have made efforts in maintaining stable production activities with high growth, joining hands with the whole province to achieve the local growth target. As a result, in the first quarter of the year, the total revenue of enterprises in province-based IPs reached more than US$8.3 billion, up 12.45% compared to the same period. Of these, the FDI sector gained nearly US$ 7.2 billion (accounting for 86%), up 12.8% over the same period while the domestic investment sector gained more than US$ 1.1billion (accounting for 14%), an increase of 10.31% over the same period. Their export turnover reached more than US$ 4.8 billion, up 12.73% over the same period while import value was nearly US$ 4.8 billion, up 8.74% over the same period. They also paid  US$118 million for State budget, up 8.94% over the same period last year.

With many positive and effective solutions from the province, enterprises in general and those in province-based IPs in particular have kept the pace of production and business, creating the added value of products, contributing  to the local overall growth. As a result, the province's industrial production in the first quarter of 2022 obtained a positive recovery, with an increase of 7.2% over the same period last year. This thriving result significantly contributes to the local overall growth and is also the driving force for the province's economy to recover quickly and sustainably.

“The positive results of production and business showed that implementing a policy of safe and flexible adaptation, effective control of the Covid-19 epidemic and solutions for the local socio-economic recovery and development was very effective. In the coming time, in addition to more support solutions for enterprises, province-based IPs are preparing conditions in terms of land, infrastructure, and human resources to receive more hi-quality investment flows. Along with that, province-based IPs  will continue synchronously deploying solutions for socio-economic recovery and development, supporting enterprises and turning industrial production into a driving force for growth, contributing to the completion of the local targets set out in 2022”. (Bui Minh Tri, Head of provincial IPs’Management Board)

Reported by Ngoc Thanh-Translated by Kim Tin