Binh Duong prioritizes supporting industries

Investment encouragement

Mai Hung Dung, Vice Chairman of the provincial People’s Committee, said that to create a breakthrough in investment attraction, as well as to promote industrial development with priority to manufacturing projects using high technologies and creating high added values, Binh Duong encourages investment in supporting industries in the field of machinery and electronic equipment manufacture and assembly.

Adequate industrial and urban infrastructure enables Binh Duong to attract investment in supporting industries - Photo: VGP

In recent years, Binh Duong has provided active support for supporting industry businesses to help increase the value of domestic industrial products and deepen their involvement in global added value chains. The province has gradually built the manufacturing linkages between domestic and foreign invested companies.

Currently, there are in Binh Duong 2,277 supporting industry businesses, including 442 companies in the textile and garment sector, 172 in the leather and footwear sector, 593 in the wood processing sector, and 710 in the mechanical engineering sector.

The province has also attracted supporting industry investment from major foreign groups. For example, Kolon Group (Republic of Korea) has invested US$1 billion in a 42ha factory manufacturing treads and airbags for automobiles. Another example is Tetra Park Binh Duong Joint Stock Company which has invested US$124 million in a plant manufacturing aseptic packaging from paper, plastics and aluminum for food packing.

Some companies based in industrial parks have established linkages and value chains in sectors such as fiber production, fabric weaving and dyeing, and fabric finishing for garment production at Thien Nam Fiber Company, Kyung Bang Vietnam Co., Ltd., and Polytex Far Eastern Vietnam; or manufacturing spare parts and components for bicycle assembly at Asama, DDK, SR Suntour, Active, etc.

Some companies based in Binh Duong Province’s industrial parks have established sectoral linkages and value chains. Photo: Chi Tuong

Business facilitation

According to Huynh Quang Nhung, Deputy Director General in charge of sales at THACO Industries, Binh Duong Province has the potential to develop supporting industries not only for local businesses but also for the entire Southern Key Economic Zone, given adequate transport infrastructure.

In late 2022, the provincial People’s Committee signed a memorandum of understanding (MoU) with Truong Hai Group (THACO) to enable it to invest about VND26 trillion (more than US$1 billion) in the construction of a mechanical supporting industrial park in Binh Duong. Under the MoU, from 2023, the group will study the project and the provincial People’s Committee will facilitate the implementation of investment procedures.

Binh Duong Province, together with Ho Chi Minh City, Hanoi, Dong Nai, and Bac Ninh are the top five localities nationwide in terms of supporting industry development. These localities have taken initial steps towards the formation of manufacturing linkages between domestic and foreign invested companies, enabling domestic businesses to access advanced technologies and participate in global value chains.

Binh Duong has established an industrial park covering more than 1,000ha in Bau Bang District to attract investment in supporting industries, prioritizing foreign investment projects. So far, many supporting industry projects of major global groups have been developed in this industrial park. Examples include Kolon Group’s 42ha factory manufacturing treads and airbags for automobiles with investment of US$1 billion, and the US$1.37 billion synthetic fiber manufacturing project of Polytex Far Eastern (Vietnam).