Major Investment Recipient in Southern Central Coast

With available local advantages, good infrastructure preparations in industrial zones, smooth traffic connectivity and abundant human resources, Binh Dinh province is considered a top destination for companies and investors.

Impressive investment results

In 2022, Binh Dinh province attracted 81 new projects (80 domestic projects and one foreign project) with a total investment capital of VND19,644.61 billion (US$852 million) and allowed 17 existing projects to add VND19,475.5 billion to their registered capital. With 81 new projects licensed, the province achieved 135% of the target of 60 projects set at the beginning of the year.

As for domestic investment, 33 projects were located in small industrial complexes with a total investment capital of VND2,110.61 billion; 21 projects in economic zones and industrial parks with VND3,310.46 billion of investment capital; and 26 projects outside economic zones and industrial zones, with VND14,123.53 billion of investment capital.

By sector, 56 projects were involved in industry; 11 projects in trade, service and tourism; nine projects in real estate, construction and infrastructure; two projects in agriculture; one project in information technology; and one project in education.

By location, Tay Son District drew 15 projects (14 projects in industrial complexes); Quy Nhon City, 14 projects (one project in an industrial complex); An Nhon Town, nine projects (six in industrial complexes); Hoai Nhon Town, six projects (three in industrial complexes); An Lao District, four projects (all in industrial complexes); Tuy Phuoc district, three projects (one in an industrial complex); and Phu Cat district, three projects.

In addition, Vinh Thanh district has two projects (all in industrial complexes); Hoai An and Van Canh districts, one project each (all in industrial complexes); and Phu My district, one project. 21 projects were in economic industrial zones.

As for foreign direct investment (FDI), the province licensed one new investment project with US$4 million, granted the investment registration certificate to one project, and allowed five existing projects to increase their investment capital by US$16.04 million. To date, Binh Dinh has 87 FDI projects with US$1.11 billion of investment capital. Although the number of licensed projects was small, the province welcomed and worked with a lot of foreign investors from leading economies such as Germany, South Korea, Japan, Singapore, Israel, Australia, New Zealand and Thailand. The province is expected to receive foreign capital flows from these investors in the following years.

In 2022, investment projects disbursed VND53,522.11 billion (equal to 89.20% of the plan of VND60,000 billion). The province licensed 1,203 new companies with a total registered capital of VND10,118.99 billion, up 28.39% in companies but down 20.4% in capital from a year earlier.

To draw more investment fund, in 2022, the province effectively carried out some key programs, including: (1) Organizing auctions and bids to pick up investors for various large key projects; (2) Promoting and supporting investment in Quy Hoa Science City; (3) Signing cooperation agreements on communication and investment promotion between Binh Dinh province and Vietnam Airlines, Bamboo Airways and Vietjet Air, Vietravel Airlines; (4) Opening investment promotion conference in South Korea; (5) Organizing business promotion conferences with German, Thai and South Korean companies in Binh Dinh; (6) Supporting investors to deal with their obstacles and difficulties through the Investment Promotion and Support Working Group of the Chairman of the Provincial People's Committee; (7) Updating, adjusting and supplementing the list of prioritized investment projects in Binh Dinh province in 2021 - 2025; (8) and Developing the District and Department Competitiveness Index (DDCI).

However, the province also confronted shortcomings and limitations such as underperformance of some local enterprises; falling or slowing growth of some key industries; and input shortages. Besides, both domestic and international demand for some products declined, especially in large markets (China, South Korea, Japan, the United States, and the European Union). As local available advantages are not brought into full play, investment inflows fail to meet expectations.

Prime Minister Pham Minh Chinh attends the ribbon-cutting ceremony to inaugurate the coastal road project DT 639 in Binh Dinh province

Solutions for better investment environment

Defining private investment as an important factor for socioeconomic development and a catalyst for successful implementation of the resolution of the 20th Provincial Party Congress (2020 - 2025 term), in 2023, Binh Dinh province will continue to organize many investment promotion conferences with other countries, actively expand cooperation relations and establish bilateral cooperation with foreign provinces and cities. The province also introduced some specific key tasks:

First, concentrating investment resources to complete traffic infrastructure systems and industrial zone infrastructure; training human resources, attracting industrial investment projects, building social housing and worker housing; providing adequate and timely labor resources for businesses and investors.

Second, speeding up administrative procedure reform, focusing on digital transformation, developing high-quality services to meet production and business requirements of enterprises and industrial and urban development needs to facilitate investment by businesses.

Third, particularly attracting investment fund for five main pillars: Industry, tourism, high-tech agriculture, port and logistics services, and urban economy with urbanization; and selectively attracting projects that economically use land and energy, use high technology, environmentally friendly technology, have high added value, pay large budgets, and promote rapid and sustainable economic development.

Actively monitoring and assessing the shifting trend of foreign investment flows into Vietnam from some countries in the region to select and attract quality investment projects; preparing the land fund, human resources and necessary technical infrastructure to receive shifted FDI inflows, reinvesting in strong post-pandemic economic recovery.

Fourth, stepping up investment promotion and management; further supporting and creating a favorable, open and attractive investment environment.

Fifth, building a list of investment projects for the 2023 - 2025 period to unlock local potential advantages; quickly completing investment procedures in industrial zones with local advantages.

Sixth, attracting more than 60 investment projects each year (including foreign investment capital) and increasing investment projects by 10% annually; drawing over VND20,000 billion of investment capital each year (including foreign investment capital) and increasing the investment value by 10% annually; bringing the disbursed investment value of over VND20,000 billion per year, including foreign capital.

Seventh, further fostering cooperation with Vietnamese localities like Binh Duong, Ha Tinh, Gia Lai, Hanoi and Ho Chi Minh City; foreign cities like Izumisano (Japan), Yongsan and Incheon (South Korea); and universities like FPT University, Hanoi University of Technology and Ton Duc Thang University under joint cooperation programs between Binh Dinh province; and deploying cooperation agreements with Vietnam Airlines, Vietjet, Bamboo Airways and Vietravel Airlines.

Eighth, regularly holding dialogues with businesses and investors, thus promptly listening to opinions, offering solutions to remove difficulties and obstacles for business development. The province always appreciates and recognizes contributions of the business community from business activities to social activities.

2023 is forecasted to be a difficult and challenging year for the economic growth of Vietnam as well as Binh Dinh province. Sticking to the consistent view of respecting the position and role of the business community and investors and the motto of “placing people and businesses at the center of service,” Binh Dinh province is committed to providing maximum support for investors and businesses to find different, successful and sustainable investment opportunities in the locality.

By Duy Binh, Vietnam Business Forum