Creating FDI attraction

The Eagle has arrived

In recent years, the world situation has been unstable due to conflicts, while Vietnam's political situation, security and order have always been stable, creating confidence for large enterprises in the region and the world to seek investment. Thanks to that, the economic centers in the South, such as Binh Duong, Dong Nai, Ho Chi Minh City have industrial parks (IPs) with an occupancy rate of over 90%. Some IPs have been supplemented with new planning but need time to complete. On the other hand, the cost of renting industrial land in these areas is quite high, causing many investors to be hesitant, change their perspective, and move to satellite IPs to have land funds, adequate infrastructure, attractive incentive policies and especially enough space for long-term, sustainable development like in Binh Phuoc.

Many FDI enterprises invest in Dong Xoai III Industrial Park (Dong Xoai City)

Binh Phuoc currently has 15 industrial parks with an area of ​​6,061 hectares and Hoa Lu Border Gate Economic Zone with an area of ​​tens of thousands of hectares and many industrial clusters with completed infrastructure, convenient regional traffic and seaports. According to the approved provincial planning, by 2030, the total land area of ​​Binh Phuoc's industrial parks will be 18,105 hectares, ready to meet the needs of domestic and foreign investors. In particular, the land rental price in Binh Phuoc's industrial parks only fluctuates around 80-100 USD/ ^m2 , while neighboring provinces have prices around 130-150 USD/ ^m2 .

This is considered a comparative advantage, converging all factors for a series of "big guys" to come to Binh Phuoc to invest in many large-scale, regional projects. Among them is the project of processing and preserving meat and meat products, with a scale of 170,400 tons/year, with a total investment of 110 million USD of CPV FOOD Company Limited in Becamex - Binh Phuoc Industrial Park (Chon Thanh Town). The project has been operating effectively, providing high-quality, food-safe chicken products for domestic consumers and exporting to Japan, Europe, and the Middle East. At the same time, it contributes to the consumption and improvement of the quality and value of the province's livestock industry; annually creating jobs for about 3,200 workers, contributing about 76 billion VND to the budget.

Notably, recently, another “big guy” in the tire manufacturing industry has spent hundreds of millions of USD to invest in the largest project in Binh Phuoc province. That is the HaoHua Tire Factory project (Vietnam) of investor Shandong HaoHua Tire under HaoHua Group, with an investment capital of 500 million USD, a scale of 14.4 million sets of tires/year. The project has now completed phase 1. When put into operation, it will create jobs for about 1,600 workers annually, with an output value of about 770 million USD, contributing about 200 billion VND to the budget.

A representative of Shandong HaoHua Tire said that since the end of 2022, it has surveyed and researched investment in a number of countries such as Malaysia, Thailand, Cambodia and Indonesia. Through risk assessment, environmental analysis and investment location, the company decided to choose Minh Hung - Sikico Industrial Park, Hon Quan District, Binh Phuoc Province as its destination. To date, after just over 1 year of implementation, the company has completed the items and is preparing to inaugurate phase 1 of the tire factory on December 14.

MDF board production of FSC Vietnam Joint Stock Company, part of Kim Tin Group, in Nam Dong Phu Industrial Park - Photo: Trung Quang

In the coming time, the province will mobilize resources to develop the industrial park network in localities in the southern region and neighboring areas, including Dong Xoai city, Chon Thanh town and Dong Phu and Hon Quan districts. Expand and establish new industrial parks. Strive to develop the industrial park development scale in the province to reach 18,105 hectares by 2030... Continue to invest in developing Hoa Lu Border Gate Economic Zone, Loc Ninh district with a scale of 25,864 hectares.

Along with industrial infrastructure, traffic infrastructure is given due attention. In the photo: The dynamic road in Dong Phu district is being built to welcome investors.

Not only industrial parks, industrial clusters also attract FDI enterprises to invest. In the photo: Tan Tien 1 Industrial Cluster has an occupancy rate of over 90% after only a short time of operation.

Flexible investment appeal

Despite the encouraging results, Binh Phuoc’s FDI attraction is still quite modest compared to other localities in the Southern key economic region. Therefore, in recent times, the province has changed its strategy and policies in attracting FDI capital.

According to Deputy Secretary of the Provincial Party Committee, Chairman of the Provincial People's Committee Tran Tue Hien, in addition to preferential policies according to Government regulations, Binh Phuoc also has a number of incentives on land rent, corporate income tax, import-export tax... to attract investors. Specifically, for land rent outside industrial parks, the highest incentive is full exemption, the lowest is exemption for a maximum of 3 years (depending on the location and investment industry).

Regarding corporate income tax, if investing in an industry in a preferential area, the highest level is exemption for 4 years, 50% reduction for the following years, and a preferential tax rate of 10% for 15 years... Foreign investors will be exempted from import and export tax on raw materials, components, and components to create fixed assets for investors.

In the 2022-2024 period, 35 projects will receive support from the province to exempt or reduce more than 356 billion VND in land rent; 134 enterprises will receive exemption or reduction of more than 125.8 billion VND in corporate income tax; 16 projects will receive import tax exemption of more than 96.5 billion VND; export tax exemption for raw materials and supplies for processing and export production of more than 7,786 billion VND... After only 2 years, Binh Phuoc has attracted 54 projects with a total investment capital of 18,814 billion VND from domestic investment capital; attracted 105 projects with a total investment capital of more than 1.17 billion USD from FDI capital. Also during this period, 3,200 newly established enterprises with a capital of more than 40,600 billion VND.

In 2023 alone, the province attracted 48 FDI projects with a total newly granted and increased capital of 824 million USD, an increase of 32.4% in the number of projects and 5.3 times in capital compared to 2022, reaching 275% of the plan. Binh Phuoc is for the first time in the group of localities attracting large FDI capital in the country, ranking 13/63. Along with investment attraction policies, Binh Phuoc is making efforts to cut administrative procedures on investment at all stages, shortening to only 2/3 of the time prescribed by the Government. At the same time, increasing investment in connecting traffic infrastructure systems, of which the Gia Nghia (Dak Nong) - Chon Thanh (Binh Phuoc) expressway and the Ho Chi Minh City - Thu Dau Mot - Chon Thanh expressway section through Binh Phuoc province are being implemented. This is the basis and premise to soon turn Binh Phuoc into an "attractive destination" of the Southeast region by 2030.

Source: https://baobinhphuoc.com.vn/news/555/166502/tao-suc-hut-dong-von-fdi