Industry Recovers and Develops Steadily

Binh Duong province issued many effective socioeconomic development policies, including the sustainable industrial development strategy. The province is currently among the leaders of industrial production in the country.

According to Binh Duong Industrial Zones Authority, Binh Duong province currently has 33 planned industrial zones with a total area of 14,800 ha. The province already established 29 of them, covering nearly 12,700 ha of land, including 27 in operation (nearly 10,970 ha) and two approved by the Prime Minister for formation (1,700 ha). Their occupancy rate is over 80%.

In the first six months of 2022, tenants in industrial parks made revenue of US$21.3 billion, up 26.35% year on year, fetched an export value of US$14.2 billion, up nearly 27.3%, and spent US$13.8 billion on imports, up 28.82%.

They paid US$282 million of tax to the State Budget in the reported period, up 23.34% over the same period of 2021. Of the sum, foreign invested companies paid US$246 million or 87% of the total and 24.26% more than a year earlier. Domestic companies paid US$36 million or 13% of the total and 17.45% higher than a year-ago period.

Also in the first six months of 2022, industrial zones in Binh Duong attracted US$2.3 billion of foreign direct investment (FDI), fulfilling 192% of the full-year plan, and nearly VND9,940 billion of domestic direct investment (DDI), equal to 903% of the yearly plan.

Therefore, industry remained a driving force of economic growth of the province. In the first nine months of 2022, the Index of Industrial Production (IIP) rose by 8.7% year on year, boosted by the processing and manufacturing sector that expanded by 8.6% and played an important part in overall growth.

Together with its focus on drawing investment funds for the high-tech sector, Binh Duong province is making every effort to develop supporting industries to control its domestic input supplies. According to statistics, the province currently had 2,277 supporting enterprises, including 442 companies active in the textile and garment industry, 172 companies in the leather and footwear sector, 953 wood processors, and 710 mechanical engineering companies.

Speaking at the Workshop on "Supply Chain Shift - Opportunities for Vietnamese Enterprises" organized by Binh Duong Provincial People’s Committee in collaboration with the Department of Technology (Ministry of Industry and Trade) and Tuoi Tre Newspaper in September 2022, Chairman of Binh Duong Provincial People's Committee Vo Van Minh said, to develop supporting industries a rapid and sustainable manner, especially in the face of the wave of redirected investment flows, Binh Duong is resolved to boost industrial restructuring; and attract and expand potential industries with high science and technology content.

Accordingly, the province has focused on carrying out the Binh Duong Smart City Project, aiming to draw high-tech industries and consider forming smart industrial - urban centers to woo high-tech firms.

Madam Nguyen Thanh Ha, Deputy Director of Binh Duong Department of Industry and Trade, said that the province approved the development of supporting industry complexes. Accordingly, it will invest in four supporting industry complexes, 75 ha each, with one for mechanical engineering.

“The province will robustly develop domestic enterprises in order to form a strong business community in tandem with FDI enterprises," said Chairman Vo Van Minh.

Hien Luong (Vietnam Business Forum)