### Binh Duong Province: A Rising Star for Foreign Investment in Vietnam
Binh Duong Province, nestled in the heart of Vietnam’s Southern Key Economic Region, is swiftly becoming a favorite destination for foreign direct investment (FDI). With its impressive array of 30 industrial zones, Binh Duong ranks just behind Ho Chi Minh City in attracting FDI. Aimed at fostering high-tech industries and developing new industrial zones, the province is projected to grow economically by 8-8.5% in the coming years, making it a focal point for international investors.
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### Economic Performance and Trade
In 2021, Binh Duong recorded a trade surplus of a staggering US$6.8 billion, with exports reaching US$31.5 billion against imports of US$24.6 billion. This strong performance allowed the province to contribute VND 61.2 trillion (around US$2.6 billion) to the State budget, exceeding its targets by 4%. The projected gross regional domestic product (GRDP) per capita for 2022 is set to rise to US$7,478, up from VND 153.6 million (US$6,650) in the previous year. Furthermore, Binh Duong aims for an Industrial Production Index (IIP) growth of 8.9% and a 17% increase in foreign trade during the year.
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### Strategic Development Goals
Binh Duong has articulated ambitious goals for 2022, targeting an impressive contribution of VND 60 trillion (US$2.5 billion) to the State budget and attracting approximately US$1.8 billion in foreign direct investment. The province is set to facilitate social investments through a 10% increase and aims to create around 35,000 new jobs. The focus will be on developing supporting industries in the manufacturing and processing sectors, utilizing advanced, eco-friendly technologies to integrate local enterprises into global value chains.
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### Competition and Rankings
According to the 2021 Provincial Competitiveness Index (PCI), Binh Duong ranks as the sixth most competitive province in Vietnam, although it has dropped two positions compared to the previous year. The top slots were occupied by Quang Ninh, Dong Thap, and Long An. Binh Duong’s competitive edge lies in its reduction of administrative procedures, thereby simplifying the compliance landscape for businesses.
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### Infrastructure Index and Evaluation
Binh Duong is recognized for its exceptional infrastructure, leading the Infrastructure Index as indicated in the PCI 2021 report. This index evaluates various aspects, including industrial zones/clusters, transportation networks, and telecommunication systems. The province’s infrastructure development is a critical factor in enhancing its appeal to foreign investors and is poised to support further economic growth.
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### Record of Foreign Direct Investment
After 25 years of actively courting foreign investment, Binh Duong has seen remarkable success, significantly impacting its socio-economic landscape. In 2021 alone, the province registered US$9.01 billion in total investments, with a notable 40.5% year-on-year increase. Major contributions included the Polytex Far Eastern Limited Company, which added US$610 million to its investment in the province.
As of now, Binh Duong stands as the second most attractive FDI destination in Vietnam, hosting over 4,040 projects with a total capital of US$39.4 billion. Notably, in the first quarter of 2022, the province attracted US$1.6 billion in FDI—3.6 times more than the same period in the previous year.
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### Major Investors
Binh Duong is home to over 3,400 foreign companies from 64 different countries, engaging in trade with 200 nations worldwide. Among the leading investors is Denmark, which, in 2022, made a significant investment of US$1.3 billion, primarily driven by the establishment of a factory by the LEGO Group. This factory is notable as LEGO’s sixth-largest globally and the second in Asia.
Singapore stands out as a major player in the provincial economy, contributing about 20% of total FDI, with 260 enterprises operating in the region. South Korea is another key investor, with over 800 projects worth approximately US$3.4 billion.
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### Transport Connectivity Improvements
The provincial authorities are prioritizing transport infrastructure to maintain its standing as an investment hotspot. Plans include upgrading major highways such as National Highway 13 and developing expressways that connect to Ho Chi Minh City and the Mekong Delta. These projects, executed via public-private partnerships (PPP), aim to enhance connectivity, further bolstering the province’s economic prospects.
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### Industrial Park Development
Binh Duong boasts 30 industrial parks with an impressive total area of over 12,670 hectares and an occupancy rate of 87.4%. The province is also home to 12 industrial clusters covering 790 hectares. In a bid to attract foreign investments, Binh Duong is planning two new 1,000-hectare industrial parks, including the Vietnam-Singapore III (VSIP III) industrial park.
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### Commitment to Sustainable Development
Binh Duong is not just focused on immediate economic gains; it also emphasizes sustainable development. The province has launched projects aimed at enhancing workforce skills, with over 100 vocational schools currently training about 30,000 students. This initiative raises the vocational training rate to an impressive 80.5%.
Additionally, the province is working on a smart city project, aiming to position itself as a leader in scientific and technical talent development.
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### Opening Doors for Investment
The provincial government is actively seeking investments in specific sectors, particularly in automobile mechanics, electronic technologies, and high-tech agriculture. Binh Duong offers various incentives, including tax and rental exemptions, to make the investment climate even more attractive.
By continuously improving its infrastructure, business environment, and workforce capabilities, Binh Duong Province is cementing its status as a burgeoning hub for foreign investment in Vietnam.