Binh Duong innovates its way of attracting foreign investment

Innovation in the attraction of investment to enhance competitiveness is one of the key tasks outlined in the resolution of the Binh Duong Provincial Party Congress for the 2020-2025 period.

Manufacturing electric motors at Bonfiglioli Vietnam at the My Phuoc 3 Industrial Park in Binh Duong Province.

Increases in both quality and quantity

In recent time, many large companies have been choosing to invest in Binh Duong. In May 2024, Danish group Pandora kicked off the construction of a factory at the Binh Duong-based Vietnam-Singapore III Industrial Park (VSIP III) with total capital of 150 million USD. Pandora is one of the largest jewellery brands in the world, with products manually made from premium materials.

Pandora’s factory is built in accordance with LEED Gold, a leading green building certification. It uses 100% renewable energy to manufacture jewellery products. In addition to Pandora’s project, Danish toymaker Lego is also planning to put its one-billion-USD factory into operation at VSIP III in 2024.

Designed to be Lego’s most sustainable factory, its Vietnam factory is equipped with rooftop photovoltaic panels and a solar farm in an adjacent plot of land. These two sources of power will meet the factory’s annual energy demand. Lego said it would use the most advanced energy-efficient equipment, while its buildings and production processes are designed to minimise energy use.

In the first seven months of 2024, Binh Duong drew nearly 1.1 billion USD worth of foreign investment. To date, the province has received 40.9 billion USD in 4,342 projects from 65 countries and territories in the world. According to the Binh Duong People’s Committee, the province has continuously carried out administrative reform, improved the investment climate, and undertaken green transformation of its economy.

The presence of Lego and Pandora in Binh Duong is evidence of the province’s correct choice and direction in renovating its foreign investment attraction model — which has earned the trust of many foreign investors.

Recently, investment capital in Binh Duong is primarily concentrated in industrial parks, with a priority for clean industries and high technologies. According to the provincial authority in charge of industrial parks, 724.5 million USD was poured into Binh Duong’s industrial parks in the first seven months of 2024, raising the total foreign investment capital to 29.9 billion USD across 2,468 projects, accounting for nearly 73.2% of total foreign investment in the province.

Under a plan approved by the Prime Minister, Binh Duong has 33 industrial parks with a total area of 14,790 hectares. To date, 28 industrial parks with a total area of 11,963 hectares have been put into operation.

Binh Duong’s industrial parks will be designed to integrate smart technologies, from the use of renewable energy to waste treatment, traffic management and security to bring safety, trust and efficiency to enterprises and their employees.

Measures to attract investment sustainably

Foreign investment is producing a positive effect on Binh Duong’s economy, helping to guide it in the direction of increasing the share of industrial production, trade and services. Foreign-invested companies are manufacturing highly competitive products and create a high trade surplus.

With the goal of facilitating enterprises, Binh Duong has recently held many conferences, workshops and other events to promote investment with countries such as Japan, the Republic of Korea, China, Belgium, France, Germany, the Netherlands and Italy.

Director of the Binh Duong Department of Planning and Investment Pham Trong Nhan said the province’s investment attraction policy has shifted to attracting enterprises with advanced technologies and high added value as well as connections with domestic enterprises and local research and development centres.

The province gives a priority to visionary investors who employ advanced technologies aligned with environmental protection to ensure a harmony between economic development and green growth, helping to build a world-class Binh Duong smart city.

Binh Duong Vice Chairman Mai Hung Dung shared that renovating its investment attraction policy is one of the key tasks outlined by the 11th Binh Duong Party Congress.

Building on the results achieved in the implementation of the resolution, the province has been working to develop an innovation and science-technology ecosystem and build green, smart and sustainable industrial parks and urban areas towards the creation of industrial parks aligned with science and technology to attract high added value manufacturing sectors.

Having determined that sustainable industrial development is one of the important preconditions for development, Binh Duong is planning to transform traditional industrial parks into smart and ecological industrial parks and is focused on attracting investment in high-tech sectors, supporting industries, and environmentally friendly industries.

The province always pays attention to promoting innovation and digital transformation in industry to increase productivity, save resources, and ensure environmental sustainability. This is an important foundation to continue creating an attractive investment climate in Binh Duong to welcome the wave of new-generation foreign investment more and more effectively.