Bac Ninh: Attractive Destination for Foreign Investors

During the renovation period, opening the door and attracting new foreign investments are considered to be measures to exploit external resources to promote internal resources and develop socio-economy. Foreign investment is an important component of external economic policy of the Party and State of Vietnam. Expanding and improving operational efficiency to attract foreign investment is a long-term task, associated with the industrialisation and modernisation of the country. The FDI sector has played an important role in economic development of Bac Ninh. Thanks of policies of opening door to international investors and the dynamics of the provincial leaders, Bac Ninh has managed to promote FDI attraction. FDI in the province has increased over the years. At the re-establishment of Bac Ninh in 1997, the province had only 4 foreign investment projects with total registered capital of US$177.58 million. Then, as of September 2014, the Bac Ninh province had 608 FDI projects with the total registered investment capital of US$7,610 million. The most important project is Samsung that was licensed in July 2014 with a total investment of US$1 billion.

Bac Ninh has determined that FDI plays a very important role to ensure the development of the province towards modernisation. The province has been actively promoting foreign economic activities and implementing measures to attract FDI projects. The province is constantly improving the existing investment environment and focusing on planning, construction and development of industrial zones. Bac Ninh has 15 industrial zones including those with most modern infrastructure namely VSIP, Tien Son, Yen Phong and Que Vo. In particular, the biggest priorities will go to projects with high feasibility, strong financial resources, high technology, production of new materials, biotechnology, and electronic projects which are environment friendly.

 

Bac Ninh has been a really fascinating place with many large FDI corporations such as Samsung (Korea), Canon (Japan), Microsoft (USA), and Hon Hai Precision Industry Co., Ltd or Foxconn Technology Group (Taiwan). In 2008, Samsung invested in Yen Phong Industrial Zone, a good signal for attracting investment in the province. So far, Samsung and hundreds of other businesses are operating stably in Bac Ninh; those are investing more than US$3 billion and contributing greatly to the proportion of the industrial exports of the province. So far, FDI projects in Bac Ninh are operating effectively. Along with attracting new investment projects, investors of current FDI projects have effectively expanded scale of business production and investment capital. FDI projects in Bac Ninh have facilitated the forming of some key industries such as core industries like electronics to create annual large value and highly competitive products. This helps create spillover to other domestic enterprises and contribute to urban development in the area.

 

Bac Ninh Province aims to attract investment in the coming years to increase the quality, efficiency and environmental protection in accordance with international standards and sustainable development of the province. Besides, the province also facilitates technology transfer among industries and projects. Other factors like the employee wages, the contribution to the local budget, the development of the high skilled workforce and high technology application for environment friendly development services and creation of value-added products as well as an effective use of the resources for a sustainable development are also focused on.