Binh Dinh Offers Incentives to Investors
Binh Dinh province is located in the southern centre of the central economic region providing a gateway to the sea for a large area, consisting of coastal provinces in the south of
So far, Binh Dinh has attracted 16 foreign-invested projects with a total registered capital of US$48 million. Of this figure, 12 projects have become operational and the remaining four are in the preparation period. In general, the attraction of foreign direct investment (FDI) has yet to match with the province’s potential in terms of the number and quality of projects, contribution to industrial production, export turnover and province budget. On the contrary, domestic investment has made a significant contribution to the province’s socio-economic development.
To overcome the difficulties of infrastructure and to attract investors, over the past few years, Binh Dinh province has concentrated its investment on major development works.
Accordingly, the province has upgraded and built new roads, including the Quy Nhon-Song Cau road, the Xuan Dieu tourist road in Quy Nhon, the Quy Nhon-Tam Quan coastal road with a length of 80 kilometres. Also, the 30,000 tonne quay of the Quy Nhon seaport has been upgraded. Especially, the province has built the Quy Nhon-Nhon Hoi road, lengthened seven kilometres, with the 2.5 kilometre Nhon Hoi bridge cross Thi Nai lagoon to connect Quy Nhon city with the Phuong Mai peninsula, where the Nhon Hoi economic zone is being formed. This will serve as a driving force for the development of Binh Dinh province and the central coastal area.
Also, Binh Dinh province is perfecting other infrastructure facilities, upgrading its electricity supply and upgrading a water supply plant in Quy Nhon city. It is building water supply systems in towns and the reservoir Binh Dinh with a capacity of 250 million cubic metres, hotels, luxurious resorts, the Phu Cat airport, as well as trade and exhibition centres.
The province has planned industrial parks and complexes. Binh Dinh now has two industrial parks, Phu Tai and Long My, and two more parks, Nhon Hoa and Nhon Binh, are being formed. The province has 33 industrial and handicraft complexes in Quy Nhon city and districts. However, in the long-term, the Nhon Hoi industrial park, part of the Nhon Hoi economic zone, will become the largest industrial park, determining the development of Binh Dinh province.
The province is prioritising the development of industry and services, especially seaport and tourism services, and infrastructure facilities. In the industrial sector, the province will concentrate on developing food, seafood, farm-produce processing, construction material production before developing the electronic and software industries. With a motto of developing small and medium-sized industrial complexes and taking advantages for building large-sized parks, the building and expansion of industrial complexes have been effectively implemented.
The Nhon Hoi economic zone on the Phuong Mai peninsula has an area of 12,000 hectares, near Quy Nhon city. The zone, which is not located in areas with cultural heritage sites or major places of national defence, has favourable conditions for development. Developed as a zone-in-zone model, consists of sub-zones, including a non-tariff area (545 hectares), which is separated with other areas with fence and formed with industrial park and export processing zone and warehouses. The tariff area (11,455 hectares) consists of tariff ports, ship building and maintenance factories, industrial parks, tourist areas, residential areas and an administrative centre.
Binh Dinh is prioritising the attraction of investment to the development of tourism, industry, seafood, farm-produce projects, in particular projects in the Nhon Hoi economic zone.
To attract investment, Binh Dinh province has issued policies on investment encouragement. Accordingly, the local authorities encourage projects to invest in industrial parks and trade centres. For the Nhon Hoi economic zone alone, the province will propose the Government to issue specific mechanisms to attract investors. Under the province’s investment encouragement policies, apart from incentives stipulated by central agencies, investors will get subsidies equal to 100 per cent of land rent for eight, 11 or 20 years and 100 per cent of corporate income tax for three, five or eight years, according to locations of projects, 50 per cent or 100 per cent of costs for site clearance. However, the subsidies will not exceed VND 7 billion or 15 billion, according to projects’ capital and industries. Also, the province will provide subsidies minimally equal to 50 per cent of vocational training costs. Investors will be provided with financial support equal to part of costs for enterprises to join exhibitions and fairs, expand their markets, build and register their trademarks. Furthermore, investors will receive support in water and electricity supply, and telecommunication services to the fence of industrial parks.
At the same time, the province has stipulated the responsibility of relevant agencies in settling procedures of projects so as to minimise the time taken for projects to be formed.
To attract investors, Binh Dinh province has always attached importance to developing master plans, material supply areas, human resources, simplifying administrative procedures, implementing a ‘one-door’ mechanism, providing pre-investment and post-investment support for investors. With such a spirit, Binh Dinh province is welcoming Vietnamese and foreign investors.
Binh Dinh province has established its Investment Promotion Centre under the Department of Planning and Investment to help investors to carry out their projects. The centre will connect investors with local authorities.
Information about the province’s potential and investment encouragement policies is available on the website www.binhdinhinvest.gov.vn.
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