Binh Duong has prioritized and encouraged supporting industry development to attract investment in the field

Lack of supporting industry industrial park

Binh Duong has become a top-five province in Vietnam in terms of supporting industry development.

Nguyen Thanh Ha, Deputy Director of the Binh Duong Provincial Department of Industry and Trade, said Binh Duong has been developing industries producing materials and accessories for textile-garment, leather and footwear, mechanical engineering, and electrical-electronics sectors. Although they have significantly improved, these supporting industries just meet 40-45 percent of domestic textile-garment and leather and footwear manufacturers’ demand for production materials and accessories, 10-20 percent of the demand by less-than-nine-seater automobile producers/assemblers, and 15 percent of the demand by electronics and other information and communication technology (ICT) enterprises.

Binh Duong has prioritized and encouraged supporting industry development to attract investment in the field. A problem is that the province hasn’t had an industrial park specifically designed for supporting industries.

Thaco Industries General Director Do Minh Tam believes that Binh Duong has advantages to build a supporting industry industrial park, including a strong business community, infrastructure advantages, land resources, and the support of local authorities.

Investment attraction

The Binh Duong Industrial Zones Authority’s data show that as of the end of May 2024, the province-based industrial parks attracted 2,453 effective FDI projects totaling US$29.74 billion in registered capital, more than half of which is found in supporting industries. The number of major supporting industry enterprises/projects in the province has increased, while the sector’s businesses currently total nearly 2,300, including 442 textile and garment enterprises, 172 leather and footwear companies, 593 wood processing enterprises, and 710 mechanical engineering companies.

Large supporting industry enterprises in the province include the US$1-billion, 42-hectare automobile tire and airbag project by Kolon Group (the Republic of Korea); the US$1-billion-plus synthetic fiber production project of Polytex Far Eastern (Vietnam); and the US$186.2-million project of the Nitto Denko Company.

Many supporting industry projects have increased investment capital and expanded production in the province. Recently, the Panasonic Electric Works Co., Ltd. officially put into operation a wire connection device manufacturing plant in the Vietnam-Singapore Industrial Park 2 (VSIP 2).

Nagato Takahiko, Head of the Japanese Business Association in Binh Duong, said the province is a preferred destination for Japanese supporting industry investors.

Recently, Tetra Pak Joint Stock Company announced an additional investment of 97 million euro in its beverage carton manufacturing plant in Binh Duong Province, raising its total investment since 2019 to over 217 million euro. Similarly, Far Eastern Polytex Vietnam Co., Ltd. had previously increased its capital twice, bringing its current total investment to over US$1.37 billion.

Nguyen Thanh Ha, Deputy Director of the provincial Department of Industry and Trade, stated that supporting industry (SI) enterprises in the province are being provided with favorable conditions for development to gradually integrate into supply chains. Once SI develops, it will create connections and specialization, leading to the early formation of materials supply and high-tech component production system.

Mai Hung Dung, Vice Chairman of the Provincial People’s Committee, noted that Binh Duong has consistently been a leading province in attracting foreign direct investment. However, investment in high-tech and SI sectors remains limited. To achieve sustainable and in-depth industrial development, Binh Duong has been actively supporting enterprises in the SI sector, aiming to increase the value of industrial products made by domestic businesses and integrate the province’s industries deeper into the global value chain.

In the coming period, Binh Duong will continue prioritizing the development of industries with high value-added, gradually increasing the local content rate of products, and completing the planning of material and SI zones. The province plans to develop four supporting industry clusters, each with an area of 75 hectares, including one mechanical supporting industry cluster. Additionally, Binh Duong has planned another mechanical industrial park to help further promote the province’s supporting industry sector./.