Binh Duong Eyes US$1.Bln FDI Capital in 2007

 

Binh Duong has been known as a place of interest for investors for years, and provincial authorities still try their best to maintain and improve the investment environment with effective measures to grasp any opportunity to lure FDI capital. The province continued improving administrative procedures toward simplification, publicity and transparency to create the most favourable environment for investors. Infrastructure planning and construction are carried out seriously to assist investors to locate their investment destinations and industrial parks. The province also outlines the industrial development plans, production sector arrangements and investment attraction orientation. It also develops infrastructure systems for industrial production, such as power and water supply, traffic system and waste treatment, urban zones and commercial zones. Binh Duong also provides support services and a skilled workforce. The province increases promotion in potential markets to draw giant economic groups. It also assists investors with information provision and timely settlement of petitions, and meets investors to resolve difficulties in investment.

 

Thus, Binh Duong saw not only a rise in the number of projects, but also in the size and quality of the projects from world-leading firms. This is a positive change in pursuing sustainable development. Remarkably, South Korea’s Kumho Asiana invested US$360 million, Thailand’s SCG Siam Cement US$140 million in the first phase for a packaging project, GS Retail US$20 million for a commercial and service centre in the first phase, and Unilever US$10 million for a distribution centre.

 

Mr Huang Maoxiong, chairman of Taipei Association of Industry and Commerce, led a group of 80 businesspeople from many leading groups operating in finance, banking, post, telecom, electricity and others to visit Binh Duong and order locations for future projects. He said Binh Duong was very famous in Taiwan and many other businesses also wanted to register to take part in the delegation. Mr Susumu Naito, Chairman of Japan’s Rinnai Group, highly appreciated the favourable investment environment in the province during his visit here. At the opening ceremony for the second Rinnai factory, Mr Susumu Naito invited provincial authorities to plant a tree in the campus of the factory, to show the long-term investment and commitment to environmentally friendly conduct of the company.

 

According to Mr Le Viet Dung, Deputy Director of Binh Duong Department of Planning and Investment, the province licensed more and more service projects. Since the beginning of this year, many potential investors arrived to study the locality and lease land for urban and entertainment area construction. Notably, Binh Duong Production, Import and Export Co. and VITCO (a joint venture of three South Korean firms) agreed to build a horse racing complex in May 2007. Malaysia’s largest real estate firm SP Setia Berhad and Vietnam’s Becamex IDC signed an agreement to invest some US$600 million in the 226-hectare My Phuoc ecological urban zone in June 2007. South Korea’s infrastructure developer Boo Young applied for the construction of a 450-ha area along the Saigon River in Tan An commune, Thu Dau Mot district in July 2007. On August 8, South Korea’s Hanwha met Binh Duong authorities to seek investment opportunities. This is one of 10 biggest South Korean firms, with 30 affiliates in South Korea and 36 branches worldwide, which are expected to generate US$25 billion revenue in 2007. Mr Ko Kang, deputy director in charge of project develop of Hanwha said, “Hanwha pays special attention to building urban and service areas and infrastructure in the province. After this visit, the group will pick suitable investment projects.”

 

Before of such a favourable movement, the province is zoning investment areas, outlining industrial development plans and raising investment attraction activities. According to experts, Binh Duong will attract US$1.5 billion FDI capital this year.