Binh Phuoc Province: An Emerging Investment Destination
- Binh Phuoc province, one of the major industrial hubs in Vietnam’s Southern Key Economic Region, is known for its industrial, agricultural, commercial, and service investment.
- Following the successful model of Binh Duong province, Binh Phuoc has increasingly attracted new investment in infrastructure in industrial parks.
- Vietnam Briefing highlights the province along with three localities ripe for investment.
Vietnam’s Binh Phuoc province, part of the Southern Key Economic Region (SKER) is the largest among nineteen provinces in Southern Vietnam.
Binh Phuoc holds significant geographic importance as the province is not only a key connection between the Southern Highland provinces and commercial center Ho Chi Minh City through National Highway 13 but is also adjacent to Cambodia through the Hoa Lu international border.
Specifically, it only takes around one and a half hours to travel from Ho Chi Minh City’s Tan Son Nhat International Airport to Binh Phuoc province. Despite not having a major seaport, Binh Phuoc does have a river port at Song Be. Such a favorable location makes Binh Phuoc province an attractive destination for investment flow.
In 2021, as per the Binh Phuoc Department of Statistics, Binh Phuoc’s gross domestic product (GRDP) reached VND 46,200 billion (US$2 billion), up over 6.3 percent compared to that of 2020. This makes Binh Phuoc the locality with the highest growth rate in the Southeast area and ranks 12th in the country for 2021.
FDI and business environment
For 2021, industry and construction dominated Binh Phuoc’s economy, followed by services at 30.44 percent and the remaining 23.33 percent taken up by agriculture, forestry, and fishery. Additionally, per capita income in Binh Phuoc has reached VND 76 million or US$3304/person/year, up 9.51 percent compared to that of 2020.
Along with impressive growth in the industry sector, export turnover and FDI also showed improved performance in 2021 despite the pandemic. According to the Binh Phuoc Department of Statistics, in 2021, export turnover hit US$3.5 billion, up 17.8 percent compared to 2020, exceeding 12.9 percent of what has been planned.
In contrast, import turnover reached almost US$2.2 million, up 32.73 percent compared to 2020, exceeding more than a quarter of what was planned. This means, in 2021, the province observed a trade surplus of US$1.3 billion.
In 2021, there were 66 new FDI projects in Binh Phuoc with a registered capital of around US$600 million, which is 88.5 percent up in the number of projects and three times up in capital volume. Sources of FDI inflows during 2021 mainly came from China, South Korea, and Hong Kong.
Opportunities in industrial real estate
Opportunities for industrial real estate in Binh Phuoc can be attributed to three factors.
Firstly, the prerequisite lies in the government policies and guidelines. As stated in Decision 518/QDTTG, Binh Phuoc is expected to become a modern industrial province by 2050, which means the government will prioritize industrial expansion. This is likely to push demand for industrial real estate, aided by government incentives.
Secondly, land ready for investment and development in Binh Phuoc is abundant with around 60,000 km2 of area surface. If compared to the Northern provinces where one plot of land usually belongs to several owners, a plot of land in Binh Phuoc is typically owned by a single owner and thus easier to buy. The land is also flat and therefore easier for construction.
Last but not least, recruiting for labor is easier in Binh Phuoc, as the province is adjacent to Vietnam’s major population hubs including Dong Nai and Binh Duong provinces, as well as Ho Chi Minh City.
Opportunities in Binh Phuoc: 3 locations for your investment
Dong Phu District – A potential spot for industrial growth
Binh Phuoc’s Dong Phu district has a natural area surface of over 93,445 hectares, equivalent to 13.63 percent of the total area of Binh Phuoc and 0.28 percent of the total area of Vietnam. Dong Phu has an important geographical location with access to National Highway 14 and highway DT741.
The district connects Tay Nguyen province with Ho Chi Minh City as well as allows Dong Phu, along with Chon Thanh district and Dong Xoai City to become a leading industrial, service, and commercial triangle of the province.
Dong Phu has two industrial parks and four industrial clusters. Taking advantage of its natural landscape with a 420-hectare freshwater lake, the district also has plans to prioritize ecotourism development.
Dong Xoai City – The key engine for Binh Phuoc’s real estate growth
Binh Phuoc’s provincial capital Dong Xoai city is located at the intersection of National Highway 14 and highway DT741, 101km from Ho Chi Minh City. Dong Xoai has a total area of 16,771 hectares with a population of 120,000, making it a large city ripe for investment and development.
Dong Xoai also connects Tay Nguyen with the Mekong Delta provinces. In the future, there will be a direct railway linking Dak Nong province through Dong Xoai city to Ba Ria – Vung Tau’s Thi Vai port. These connections and transportation accessibility would facilitate Dong Xoai trade with other parts of the country making it attractive for investors.
There are four industrial zones in Dong Xoai, all with a land size of over 500 hectares attracting manufacturing businesses. This has also created a knock-on effect with flows of migrant workers resulting in the demand for housing and infrastructure. In fact, many of Vietnam’s real estate giants have joined the market including Vingroup, Becamex IDC, FLC, and Dai Nam Corporation.
Phuoc Long town – a promising outlook for tourism
Similar to Dong Phu District and Dong Xoai City, Phuoc Long town holds a significant geographical location. Phuoc Long is located on two highways: DT741 connecting Dong Xoai City with Bu Gia Map district, and DT759 linking National Highway 14 with Binh Duong and Dak Nong provinces, and Cambodia.
Particularly, the province is now prioritizing turning Phuoc Long town into a new tourism hub of the province, especially ecotourism due to the Thac Mo lake and the Ba Ra mountain as they are tourist attractions.
Industrial park spotlight – Viet Kieu IP
Along with other several industrial parks, the Viet Kieu industrial park (IP) has emerged as a competitive IP in Binh Phuoc with its accessibility and product diversity.
The Viet Kieu IP, developed by Minh Khang Investment and Development JSC, offers a wide range of services including 103 hectares of land ready for use, covering up to eight industries from electronics to food processing. That also means the investors have full autonomy to opt for any lot size and renting model they favor.
The Viet Kieu IP caters to all the support needed throughout the investment process ranging from legal, construction, and recruitment services to the daily utilities including a commercial center with a total area of 12.800 m2. The industrial park is also technology-driven, and green-oriented.
Businesses at the Viet Kieu IP are offered with two years of tax exemption, 50 percent tax reduction for the next four years as well as other incentives including preferential import tax and favorable investment procedure.
Additionally, with good infrastructure connectivity with Ho Chi Minh City, National Highway 13, Hoa Lu border in Binh Duong, and Cat Lai Port, the IP has a significant advantage in location and attraction to investors.
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