Province-based Vietnam Singapore Industrial Parks (VSIPs) in Q1 2014 continued effectively working. Noticeably, their FDI attraction during the period surpassed the whole year’s plan. 

Semi-conductors being manufactured at Vietnam Seibi Semiconductor Co.Ltd.

Beyond year’s plan

Ly Hung, Deputy Head of province-based VSIPs’Management Board said that province-based VSIPs in Q1 2014 further reached positive results in FDI attraction with nearly US$441mln, up 388% compared to 2013. There were 7 new FDI projects with a total registered capital of US$45.6mln and 10 extra-ones with more than US$395mln.

Some new FDI projects with great capital during the period included Camoplast Solidel Vietnam Co.Ltd. of Luxembourg with US$12mln, Molenbergnatie Vietnam Co.Ltd. of Brussels with US$17mln…Many valid FDI projects also decided to pour great capital into production. For example, Kimberly Clark Vietnam Co.Ltd. of US raised its investment capital by US$113mln, Wonderful Saigon Electrics Co.Ltd. of Japan by US$210mln, Midea Consumer Electric Co.Ltd. of Hongkong by US$41mln…

With the above results, province-based VSIPs’FDI attraction surpassed 40% of the year’s plan.

Regarding the reasons leading to province-based VSIPs’FDI attraction with high results in Q1 2014, Ly Hung said that the Government has issued preferential policies for new projects and ones with production expansion at industrial parks (Ips). Hence, some great projects like Wonderful Saigon Electrics Co. and Kimberly Clark Vietnam Co.Ltd…have raised their investment capital for production expansion in 2014. Province-based Ips have always had good preparation on infrastructure to satisfy investors’demand for production expansion. The inauguration of provincial Integrated Administration Center has also created a driving force for the above results.

Granted an investment license by provincial People’s Committee in Q1 2014, Medochemie Pharmaceutical Co.Ltd. of Cyprus has spent more than US$16mln on manufacturing various pharmaceutical products. Pittas Konstaninos, Regional Director of Medochemie Pharmaceutical Co.Ltd. said: “Province-based VSIPs have well-built infrastructure, quickly-solved administrative procedures…, creating favorable conditions for investors’ development. That’s reason why we have decided to select Binh Duong for investment”.

Trade surplus on increase

In Q1 2014, province-based VSIPs reached US$1.25bln in revenue, up 40% compared to the corresponding period last year. They also secured nearly US$875mln in export turnover, up 118% over last year’s corresponding period and paid US$17mln for State budget, up 6% compared to the corresponding period last year. Their import value was estimated at nearly US$785mln.

Noticeably, province-based VSIPs’trade surplus during the period achieved nearly US$90mln. This also showed that enterprises at province-based VSIPs have taken full advantage of domestic supply chains to gradually reduce their import value…

According to the assessment of the VSIPs Management Board, 2014’s Q1 was the first quarter of year with the highest figure in investment attraction so far. The majority of FDI capital flowing into province-based VSIPs in Q1 2014 came from the production expansion projects of the world and region’s large-scale corporations with industries of hi-tech electronics, medicine, hi-class consumer goods…All show that Binh Duong is still an attractive destination for investors. With this, it is believed that province-based VSIPs’investment attraction will surpass the year’s plan with a very high level.

It is known that province-based VSIPs, including VSIP I, VSIP II and VSIP IIA, have a total area of nearly 1,816 hectares. So far, they have absorbed nearly 395 valid domestic and FDI projects, including 372 FDI projects with a total registered capital of more than US$5.2bln and 20 domestic ones with a total registered capital of VND3.834bln. They have also generated jobs for 120,000 laborers in and out of the province.

Reported by T.Minh-Translated by K.T