Attracting foreign investment capital is one of the driving forces for development and is increasingly important to socioeconomic development. Therefore, choosing the right partners and right projects is a mandatory requirement in foreign investment attraction into Bac Ninh province in the coming time.
Bac Ninh leaders award certificates of merit to outstanding firms in 2021
Contributions of FDI capital
Bac Ninh is located in the economic triangle of Hanoi-Hai Phong-Quang Ninh and in Hanoi capital region where there are many passing highways like Ring 4, Noi Bai-Bac Ninh Expressway and Bac Ninh-Ha Long Expressway. Accordingly, Bac Ninh has great logistics advantages - an attraction to many foreign investors. With a clear approach and an advantageous geographical location, the province has basically become an industrial hub, with modern electronics and high-tech becoming key industries.
In the 10 months of 2022, the province attracted US$1.856 billion of foreign direct investment (ranked 4th in the country), including US$177.21 million from 98 new projects, US$1.64 billion from 108 existing projects and US$40.52 million from equity purchase deals.
Bac Ninh province licensed 1,776 FDI projects with a total registered investment fund of US$23 billion from 39 countries and territories as of October 2022 (ranked 7th nationwide by value).
In recent years, Bac Ninh has managed to attract high-quality, high-tech and high-efficient FDI investment projects. However, as a well-developed province with much experience in FDI attraction, Bac Ninh needs to set new goals to choose the right partners and improve the quality of FDI projects into the province.
New approach to FDI inflows
The “direction to perfect institutions and policies and improve quality and effect of foreign investment cooperation to 2030” as per Resolution 50-NQ/TW of the Politburo dated August 20, 2019, underlines selective foreign investment attraction and cooperation where quality, efficiency, technology and environmental protection are used as main evaluation criteria and priority is given to advanced technology, new technology, high technology, clean technology, modern management, high added value, ripple effect and connectivity to global production and supply chains.
In Decision 667/QD-TTg of the Prime Minister dated June 2, 2022 on approval of Foreign Investment Cooperation Strategy for the 2021-2030 period, defined directions are: “…Focusing on attracting selective foreign investment; selecting fields, markets and partners to foster development cooperation amid current global and regional context; repositioning investment flows, reducing dependence on risky and potentially disputed markets; prioritizing connectivity with global production and supply chains; attracting green investment, high technology, supporting technology, advanced management and administration methods; building and forming the awareness of "cooperation for development", strengthening domestic production cooperation with production chains of multinational corporations to elevate Vietnam's position in production chains; raising localization rate and value-added content of domestic companies, organizations and individuals; promoting social responsibility and environmental protection in order to enhance the effect of foreign investment cooperation.”
In order to effectively implement the above resolutions and decisions, Bac Ninh province needs to simultaneously select partners and projects in line with the FDI development plan in the provincial and regional socioeconomic development plan. Accordingly, the province will draw investment capital for electronics technology valley - Yen Phong district, Industrial corridor - Que Vo district, and IT and high-tech park - Tien Du district to focus on manufacturing electronic components, aerospace, high-tech products, semiconductors and microchips. From master plans, the province will devise an investment market research strategy, evaluate and classify investors to match local industries that need to call for FDI and specific needs of foreign investors.
Especially given current development trends, Bac Ninh can focus on attracting FDI circular projects to create sustainable growth in the future. Besides, FDI projects with Economy 4.0 are also a good choice to create development momentum for the province.
Last but not least, Bac Ninh also needs to develop strong Vietnamese enterprises that can compete on par with foreign investors.
By Vietnam Business Forum