Binh Duong FDI Update
HCMC – Foreign direct investment (FDI) into Binh Duong Province, in southern Vietnam, has seen strong growth in the first five months of 2014, reaching a registered US$815 million – 82 percent of the province’s yearly FDI target.
In May, the province attracted US$65 million in FDI. The main investors were countries such as Japan, South Korea, Hong Kong and Taiwan.
Notwithstanding the recent economic difficulties, this influx of FDI into the province has shown that the investment environment in Vietnam remains attractive to foreign investors.
Binh Duong province is one of the leading recipients of FDI in Vietnam. Last year saw the province surpass its yearly FDI target and it looks on track to surpass this year’s target as well. In 2013, foreign-invested sectors contributed about 75 percent of the province’s industrial production value and 80 percent of export turnover.
Currently, the province has 2,255 valid foreign-invested projects, with a combined worth of US$20 billion. This result was achieved thanks to regular dialogues between government authorities and businesses. These dialogues sought to remove obstacles to business set-up, improve the administrative process and enhance mutual trust.
Additionally, from now until 2030, Binh Duong will implement plans to construct industrial parks which will cover an area of thousands of hectares. The government will also increase its job skills training programs so that the area is able to provide a well-educated workforce for high tech projects.
Binh Duong has been a leading FDI location throughout 2014. In the first two months of this year, foreign investment took place in 19 provinces. The provinces that attracted the majority of investments were:
- Binh Duong with 44.8 percent (US$690.51 million)
- Haiphong with 12.7 percent (US$195.85 million)
- Ho Chi Minh City with 9.6 percent (US$147.95 million)
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