Binh Duong's manufacturing and processing industry sustains growth momentum

Binh Duong's FDI magnet

According to the provincial Department of Finance, Binh Duong attracted over USD 737 million in FDI during the first four months of 2025, a surge of 271% compared to the same period in 2024. Foreign investors continued to concentrate their capital in the manufacturing and processing industries. Of the 86 newly licensed projects, 58 belong to this sector, with a total registered capital of nearly USD 685.5 million—accounting for almost 93% of the province’s total FDI inflows.

Production activities at R-Pac Vietnam Co., Ltd. in Binh Dinh Province.

Several major projects in this sector either registered new investments or increased their capital. Notable among them is Kumho Tire Vietnam Co., Ltd. (My Phuoc 2 Industrial Park), which raised its investment by USD 270 million. Cheng Loong Binh Duong Paper Co., Ltd. (Protrade Industrial Park) added another USD 50 million, while Deneast Vietnam Co., Ltd. (VSIP II-A Industrial Park) increased its capital by more than USD 40 million.

According to the provincial Industrial Park Management Board, local industrial zones have attracted more than USD 685 million in FDI so far this year, up 76% year-on-year, fulfilling 57.1% of the 2025 annual target. Most investment slots in these industrial parks have now been filled. Thanks to proactive and effective support from local authorities, businesses operating in these parks have maintained stable production, generated value-added products, and made significant contributions to the province’s growth. Going forward, Binh Duong aims to steer investment toward more advanced, intelligent, and sustainable industrial development.

Deputy Director of the Department of Finance Trinh Hoang Tuan Anh noted that the addition of several large-scale, high-tech projects in strategic fields—such as information technology, electronics, clean energy, and renewable energy—will create a ripple effect, attracting more investors to the province. To date, the manufacturing and processing sector accounts for around 75% of Binh Duong’s total FDI, with several projects exceeding USD 1 billion in capital. This reflects the province’s sustained appeal and reliability as an investment destination.

A continuing growth engine

The manufacturing and processing industry remains a key engine of Binh Duong’s economic growth. However, global economic turbulence in early 2025 has impacted production and exports, particularly among companies exporting to the U.S. market, which is now subject to potential tariff measures introduced by the U.S. government. Local businesses are seizing a 90-day grace period to accelerate shipments, restructure value chains, address structural weaknesses, and pivot toward more sustainable growth strategies, including market diversification and supply chain enhancement.

Tu Lam Quan, General Director of TCL Vietnam (VSIP II Industrial Park), stated: “During this 90-day window, we will expedite the production of export orders for the U.S. market. We hope to receive support from authorities in recruitment and import-export operations. Moving forward, TCL Vietnam will diversify its customer base beyond the U.S., targeting CPTPP member countries and Southeast Asian markets to increase order volumes and reduce dependency on a single market.”

Currently, some Binh Duong enterprises, especially in the wood and electronics sectors, rely on the U.S. market for 80–85% of their export value. In response to the new U.S. tariffs on Vietnamese goods, provincial leaders have directed relevant agencies to implement a range of support measures—particularly in tax policy—to help businesses navigate these challenges.

The Customs Sub-Department of Region XIV has held dialogue sessions with 400 local firms to understand their difficulties and provide daily updates on U.S.-bound exports. A dedicated task force has also been formed to support enterprises and provide timely solutions to emerging issues. Customs officers have been instructed to work through weekends and holidays to expedite export procedures, ensuring fast customs clearance through close inter-agency coordination.

Nguyen Thanh Binh, Deputy Director of the Customs Sub-Department of Region XIV, said the agency has proposed faster tax refunds, reduced inspections, and extended storage periods for bonded goods nearing the 24-month deadline. Temporary suspension of audits and inspections has also been recommended to help firms focus on export activities.

Binh Duong's provincial leaders are pushing for faster disbursement of public investment to further fuel economic growth. They are also exploring new markets for key industries such as mechanical engineering, steel, and construction materials, while actively seeking new buyers for processed and manufactured goods. These efforts aim to unlock production capacity and accelerate growth, reaffirming the sector’s leadership in the province’s industrial development.

Binh Duong is also intensifying administrative reform and digital transformation. The province regularly reviews and decisively eliminates burdensome local regulations and procedures. Timely proposals are also made to central authorities to revise outdated rules. Administrative processing times are being cut by half to create an even more favorable investment environment.