Trade - services vigorously attract FDI capital

In the first quarter of 2023, newly registered capital tended to slow down, but additional investment capital and capital contribution to purchase shares by foreign investors in Binh Duong increased sharply. Notably, real estate business attracted a lot of attention from foreign investors, with total investment capital of US$ 356.3 million, accounting for 81.4% of total investment capital.

Real estate attraction

As assessed, Binh Duong continues being a destination in attracting foreign direct investment (FDI). The field of trade - services has got more and more exciting when the province is having many breakthroughs in terms of infrastructure facilities. The effective cooperation between the province and large corporations with global brands such as Warburg Pincus, Sembcorp Tokyu, CapitaLand Development, Aeon...has further contributed to changing the local urban image.

Together with efforts to improve the local investment climate plus a synchronous infrastructure system with traffic connection..., Binh Duong promises to have a lot of spaces for development

Although FDI capital pouring into Binh Duong in 3 months was not much, these projects focused on high-quality trading and services such as real estate, trading and services. Among them, 2 projects contributed capital to buy shares from investors from the Netherlands with US$324.1 million, accounting for 72.4% of total registered capital; 1 capital contribution project of BW Industrial Development Joint Stock Company with total capital of more than US$31 million, accounting for 8.4% of total.

At a recent meeting with provincial leaders, Charles R.Kaye, Global General Director of Warburg Pincus Group said that Warburg Pincus and Becamex IDC have continued cooperating in implementing new projects on cross-border online trading floors and some other projects. BW will focus on supporting the sustainable development of Binh Duong province to become a strategic investor in the field of industrial real estate. BW's goal is to become the largest supplier of logistics warehouses and factories for rent in Vietnam.

Prospects from quality capital flow

According to provincial Department of Planning and Investment (DoPI), in the first quarter of 2023, there were 15 countries and territories investing in Binh Duong. Among them, the Netherlands ranked first with investment capital of more than US$ 324 million, accounting for 72.4% of total registered capital. The US ranked second with US$37.65 million, accounting for 8.4% of total registered capital. Singapore ranked third with US$35.9 million, accounting for 8% of total registered capital. It was followed by Taiwan, Hong Kong...

As of March 15, 2023, there were 65 countries and territories registering to make investment in Binh Duong. Among them, 10 countries and territories, namely Taiwan, Japan, Singapore, Samoa, South Korea, British Virgin Islands, Hong Kong, China, Denmark and the United States had total registered investment capital of more than US$ 33.32 billion, accounting for 84% of the total investment capital of the province…

One of the projects on trade and service licensed for investment in the first quarter is the project of opening a fashion outlet system of Japan’s Uniqlo Company. Sato Ryota, CEO of Uniqlo shared that Uniqlo plans to open additional 2 more outlets in Binh Duong in 2023 while wanting to open a factory in the province. Currently, Uniqlo owns nearly 3,000 outlets across Europe, Asia and the US. Uniqlo has developed nearly 20 outlets in Vietnam, many of which are the largest in Southeast Asia.

Binh Duong currently ranks second in the country (after Ho Chi Minh City) in terms of FDI attraction with 4,097 projects granted valid investment registration certificates with total registered investment capital of more than US$ 39.73 billion, accounting for 9% of the country’s total FDI capital. The processing and manufacturing industry takes the lead with 3,544 newly registered investment projects with total investment capital of US$ 29.16 billion, accounting for 73.4% of total registered investment capital. Real estate business ranks second with total registered investment capital of US$ 7.36 billion, accounting for 18.5% of total registered investment capital. Construction ranks third with total registered investment capital of US$ 1.21 billion, accounting for 3% of total registered investment capital.

According to Pham Trong Nhan, Director of provincial DoPI, Binh Duong has set 2023’s goal of striving to to attract US$1.8 billion in FDI attraction. In the orientation of sustainable development, along with attracting investment in modern industry and advanced production, Binh Duong has continued promoting investment attraction to develop high-quality trade and services. To achieve this goal, the province has persisted in the view of selective investment attraction towards quality and efficiency.

Many solutions to attract quality FDI inflows are being promoted by Binh Duong. Particularly, the province will still focus on creating favorable conditions for investors, promoting advantages in terms of stable investment climate, favorable location while improving the business climate, labor resources, infrastructure facilities...

Reported by Ngoc Thanh-Translated by Kim Tin