The provincial industrial parks successfully overcome drawbacks to match development expectation

In 2023, despite being heavily impacted by the global economic downturn, the province managed to attract over 1.22 billion USD in foreign investment to its industrial zones, achieving 111% of the target. Domestic investment also exceeded expectations, reaching 6.033 trillion VND, or 548% of the plan. To sustain and leverage these achievements, the province is prioritizing resource investment and developing synchronized infrastructure as a prerequisite for attracting investment, particularly in industrial parks.

Proactive assistance of enterprises

Despite being under construction for just over a year, the VSIP III industrial park has already attracted over 1.54 billion USD in investment. In addition to the $1.3 billion project by Lego Group (Denmark), VSIP III has recently secured an additional 223 million USD in investments for the year 2023. Notably, Pandora Group, a Danish jewelry brand, has invested approximately 163 million VND to establish a new manufacturing facility, which is expected to produce 60 million products annually and create job opportunities for over 6,000 people. The factory is scheduled to commence production by the end of 2024.

Businesses in industrial zones in the province receive active support from various levels, sectors, and the Management Board, enabling them to continue maintaining and expanding production and business activities. In the photo: Production activities at GS Vietnam Battery Co. Ltd.

Mr. Michael Zinck Jensen, Project Manager of Pandora Production Holding in Binh Duong, stated that the project is being implemented according to the set plan. On behalf of the company's leadership, he expressed gratitude to the provincial authorities of Binh Duong for creating favorable conditions for Pandora to smoothly carry out the project. The corporation is committed to putting the factory into operation on schedule, in order to create employment opportunities for thousands of workers in the province.

According to the Provincial Industrial Park Management Board, in 2023, amidst the impact of global conflicts, high inflation in many markets has led to tightened consumer spending, a trend of rising interest rates, and the narrowing of monetary and fiscal policies in many countries, affecting the operations of businesses. Despite the challenges, businesses in the industrial zones of the province have made efforts to overcome them. Currently, many companies are recruiting additional manpower and restarting production lines. In particular, numerous businesses have expanded their consumer markets and sought additional orders from various countries.

Up to now, Binh Duong industrial parks have a total of 3,089 active projects, including 2,408 foreign-invested projects with a registered capital of 29.4 billion VND and 681 domestic-invested projects with a registered capital of nearly 94,000 billion Vietnamese dong.

According to Mr. Nguyen Trung Tin, Head of the Industrial Zone Management Board of the province, in recent times, in order to overcome difficulties for businesses, the province has focused on building mechanisms and policies to support small and medium-sized enterprises, start-ups, and attract investment into industrial zones. Regular business conferences and industry meetings are organized to promptly gather information and address challenges. Thanks to the support, in 2023, despite facing numerous difficulties and challenges, the production and business activities of enterprises in industrial parks in the province have remained stable.

Effective investment attraction

With a favorable location, spacious and well-ventilated premises, along with attractive policy mechanisms, the industrial zones in the province continue to exert a strong appeal to investors. In addition to new projects, in 2023, many investors continue to invest in new and advanced machinery production lines, expand manufacturing workshops, and enhance business operations to increase productivity. Several companies have already invested in expanding their production, such as Orion Vina Food Joint Stock Company, Dongil Rubber Belt Vietnam Company, Saigon Stec Company, Waytex International Company (Vietnam), and Dynaplast Packaging Company (Vietnam).

To ensure sustainable development, the provincial industrial zones are actively seeking solutions to attract increasingly high-quality and efficient investment capital. The province is also preparing well by providing clean land funds, planning new industrial zones, building a technological ecosystem, implementing workforce training, constructing social housing and accommodation for workers, and ensuring timely and sufficient labor supply for businesses investing in the province.

Currently, the province is developing a plan for 2021-2030, with a vision until 2050. It is expected to continue investing in new and expanding existing industrial parks, with a focus on higher standards in science and technology, environmental protection, and attracting industries that bring high added value and meet increasingly stringent standards of international investors. To develop a sustainable industry, provincial planning aims to distribute industrial development space in line with the Southeast region, in accordance with the overall provincial plan and taking advantage of each locality's strengths. This ensures a high level of specialization, enhances internal and interregional connectivity, and forms industrial, urban, service, and logistics belts along the corridors of the Vanh Dai 3, Vanh Dai 4, and the expressways of the Southeast region passing through Binh Duong province.

According to Mr. Nguyen Trung Tin, Head of the Provincial Industrial Park Management Board, the Management Board continues to innovate and further improve policies and adjust objectives to align with the new context. Accordingly, the development of the province's industrial zones will be more specialized. The Provincial People's Committee is currently implementing procedures to support the mechanical industrial park and continues to review planning, remove difficulties, and resolve issues for other industrial parks. The Industrial Park Management Board is closely coordinating with infrastructure investors in industrial parks, especially VSIP III and Cay Truong, to facilitate early implementation of production projects and attract more new projects in the future.

Reported by Ngoc Thanh – Translated by Vi Bao

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