Binh Phuoc's attraction through FDI flow

In recent years, Binh Phuoc has consistently ranked among the provinces and cities with the greatest appeal for foreign direct investment (FDI), thanks to its open and welcoming policies. The province has effectively leveraged its advantages, proactively and flexibly managing its resources while unblocking FDI capital flows. Tran Tue Hien, Deputy Secretary of the Provincial Party Committee and Chairwoman of the Provincial People's Committee affirmed that investors coming to Binh Phuoc would find land in the midst of dynamic change, aligned with development and global integration, a friendly destination offering safe and promising investment opportunities.

ATTRACT INVESTMENT FROM A GOOD FOUNDATION

One of the "keys" to opening the door and unblocking resources from foreign investors to Binh Phuoc is the strategy of developing synchronous, interconnected, comprehensive infrastructure, in harmony between traffic infrastructure, urban areas, agriculture, and industrial parks. In developing inter-regional transport infrastructure, the province has started construction of the Ho Chi Minh City - Thu Dau Mot - Chon Thanh expressway, the section passing through Binh Phuoc province. The project is an important part of the North-South traffic axis, connecting Binh Duong and Binh Phuoc with major routes such as Ring Roads 2, 3, and 4 of Ho Chi Minh City, Gia Nghia (Dak Nong) - Chon Thanh (Binh Phuoc) expressway, major airports, and seaports. Additionally, the province's transportation infrastructure has been fully developed, featuring roads with 6 to 8 lanes, ensuring convenience for both travel and the transportation of goods.

Deputy Prime Minister Tran Hong Ha and delegates perform the groundbreaking ceremony for the Ho Chi Minh City - Thu Dau Mot - Chon Thanh Expressway project, passing through Binh Phuoc province

A solid foundation for establishing a position in attracting investment is also the determination to reform administrative procedures in all fields, shortening the time to handle administrative procedures to only 2/3 of the prescribed time. With a favorable investment and business environment, Binh Phuoc attracts increasing FDI capital every year. In 2023, Binh Phuoc attracted 48 FDI projects, with a total capital of 830 million USD, marking its first appearance among the top localities in the country for the largest FDI capital inflows.

Building on this growth momentum, Binh Phuoc has continued to innovate since the beginning of 2024, diversifying its investment promotion activities. The province has proactively pursued investment opportunities by directly engaging with major FDI investors and focusing on key markets. Notably, the EuroCham - Binh Phuoc Province Forum on Connecting Industrial, Commercial, and High-Tech Agricultural Enterprises was successfully held, attracting more than 300 delegates. These included economic experts, business associations, and leaders of global corporations and prominent brands from 27 European Union countries. During the event, corporate leaders visited industrial parks and signed memorandums of understanding for investment cooperation with the province.

Deputy Prime Minister Tran Hong Ha and delegates listen to an introduction to the second phase of Becamex - Binh Phuoc Industrial Park, Chon Thanh town

Gabor Fluit, Chairman of the European Chamber of Commerce in Vietnam (EuroCham), stated that EuroCham member companies are already present in Binh Phuoc, including Hung Nhon Group and other European firms such as Nedspice. He highlighted that these companies emphasized the importance of engaging with Binh Phuoc due to the many investment opportunities available, such as large land areas suitable for building high-tech livestock farms, which could support supply chains for foreign enterprises. Additionally, the province offers a skilled workforce in the agricultural sector, including young workers with strong foreign language skills. The EuroCham business community expressed strong confidence in the province's infrastructure development plans, including the Ho Chi Minh City - Thu Dau Mot - Chon Thanh expressway, which passes through Binh Phuoc.

Binh Phuoc consistently upheld the motto "Government accompanies businesses". In addition to the preferential policies outlined by the Government, the province offered additional incentives on land rent, corporate income tax, and import-export taxes. From 2022 to 2024, it was expected that 35 projects received support in the form of land rent exemptions or reductions totaling over 356 billion VND. Meanwhile, 134 enterprises were granted exemptions or reductions amounting to more than 125.8 billion VND in corporate income tax. Additionally, 16 projects benefited from import tax exemptions worth over 96.5 billion VND, while export tax exemptions for raw materials and supplies used in processing and export production exceeded 7,786 billion VND. These incentives were considered a significant competitive advantage in attracting investment, particularly in comparison to neighboring provinces and cities.

Nguyen Minh Chien, Head of the Provincial Economic Zone Management Board, said: Binh Phuoc is focusing on improving the investment environment to be favorable, equal, open, transparent, and friendly. In particular, the focus is on drastically substantively implementing administrative reforms. Planning and investing in industrial park infrastructure is one step ahead and ensures synchronization and ready land funds to attract investment. In particular, The province is actively enhancing its investment promotion efforts, focusing on attracting large corporations and enterprises. Priority is given to projects that make significant contributions to the budget, require fewer labor resources, utilize advanced technologies, offer high investment rates, and minimize environmental impact.

“ATTRACTIVE DESTINATION” FOR FDI CAPITAL

With effective investment attraction strategies, Binh Phuoc is projected to see the establishment of 1,246 new enterprises in 2024. The province is expected to attract 35 FDI projects, with newly registered investments totaling over 639 million USD, achieving 159.7% of the planned target. As of now, Binh Phuoc has 432 FDI projects with a total investment capital of 4.515 billion USD, sourced from various countries and territories, including major projects from China, Taiwan, the US, Turkey, and others.

Among them, we must mention the HaoHua Automobile Tire Factory project of investor Shandong HaoHua Tire under HaoHua Group (China), with an investment capital of 500 million USD. The factory is built on an area of 43 hectares in Minh Hung - Sikico Industrial Park (Hon Quan district), with a production capacity of 14.4 million tires per year, bringing in a minimum revenue of 770 million USD. Along with the completion of phase 1 in November 2024, HaoHua Group (China) continued to invest 280 million USD to expand the factory by 31 hectares of land. This expansion project is expected to reach a capacity of 10 million tires per year, equivalent to a revenue of 322 million USD. When both phases are completed, the total capacity of the project will reach 24.4 million tires per year, bringing in a minimum revenue of 1.092 billion USD. Thus, HaoHua Vietnam has increased its total investment capital to 780 million USD, becoming the largest tire manufacturing enterprise in Vietnam.

Deputy Prime Minister Tran Hong Ha, leaders of central ministries, departments and agencies and leaders of Binh Duong and Binh Phuoc provinces attended the inauguration ceremony of phase 1 of the automobile tire factory of HaoHua Company Limited (Vietnam) - photo: Truong Hien

Vuong Khac Cuong, Chairman of HaoHua Group (China), shared: "Although we have surveyed and researched several countries, after analyzing the environment and investment locations, we decided to choose Minh Hung - Sikico Industrial Park as our destination. Binh Phuoc is the center of Vietnam's rubber industry, offering advantages in labor resources, a supportive government, efficient procedures, and is very suitable for the company's investment criteria."

The battery production line of GPPD Energy Company Limited, Becamex - Binh Phuoc Industrial Park (Chon Thanh Town) is fully automated, the most advanced in the world, ensuring green production requirements for sustainable development

The continued expansion and investment in new projects by enterprises involved in production and business is a testament to the efficiency of operations in a healthy and transparent investment environment. Among these, Jason Furniture Vietnam Company Limited (Kuka Home Group) and Dong Xoai III Industrial Park (Dong Xoai City), both operating in the province since 2020 in the field of sofa production, have shown notable growth. Due to effective production and business operations, the company has consistently increased its capital and expanded its production area to 38 hectares, growing its workforce from 4,000 to 6,000 employees. Wu Bin, General Director of Jason Furniture Vietnam Co., Ltd., stated: "Although the global economic situation is in recession, business activities in Binh Phuoc are quite favorable, with stable output. We are increasing capital to boost production for both domestic and export markets. The provincial government has also been proactive in reducing processing times and simplifying administrative procedures directly related to investment and business activities, thereby fostering strong trust within the business community operating in the province."

With effective business operations, Kuka Home Vietnam Company, Dong Xoai III Industrial Park, Dong Xoai City has expanded production, increasing the workforce from 4,000 to 6,000 workers

Consumers worldwide are increasingly prioritizing manufacturing plants that adhere to a circular model, reduce emissions, and produce green, environmentally friendly products. As a result, leading FDI investors are particularly focused on adopting modern technologies to support green and circular production, in line with sustainable development goals. For instance, GPPD Energy Company Limited, located in Becamex - Binh Phuoc Industrial Park (Chon Thanh Town), employs fully automated battery production lines using the most advanced technology globally, ensuring compliance with green production standards for sustainable development. Zhao Jian Chao, General Director of GPPD Energy Company Limited, stated: "The factory's production lines are fully integrated with digital transformation to reduce emissions, save energy, and produce according to a circular model. These efforts contribute to environmental protection and address climate change. As a result, the company's products are exported to numerous countries worldwide."

The number of FDI investors interested in registering investments in Binh Phuoc has consistently increased year after year. This growth is the result of ongoing efforts to innovate and improve economic management, enhance the investment and business environment, and build strong trust among the business community and investors in Binh Phuoc.