Vietnam’s Binh Dinh Industrial Zone: Opportunities for Foreign Investors
The local government in Vietnam’s Bin Dinh province approved the construction of an industrial zone (IZ) in 2020. The industrial zone will be known as the Becamex Binh Dinh Industrial Zone Project.
The project will be based in Qui Nhon city, with a total capital of more than US$143 million (3,333 trillion VND) with around US$21 million (500 billion VND) contributed capital from investors.
The IZ will be spread out over 1,000 hectares in the Canh Vinh commune and will be constructed within 10 years.
Vietnam’s IZs are locations that are earmarked by the government for the production of industrial goods and services. Typically, IZs complement certain activities – such as production, export, or high-tech – and have incentives for businesses that set up there.
Binh Dinh is located in the Central Region and is surrounded by Quang Ngai province to the north, Gia Lai province to the east, and Phu Yen province to the south. As the provinces around major economic centers such as Hanoi in the north and Ho Chi Minh City to the south became more expensive and crowded, economic growth is likely to flow into the Central Region.
The government remains committed to developing the Central Region to further propel Vietnam’s economy as it expands.
Binh Dinh’s strong business environment
Binh Dinh ranks 20th out of 63 provinces and cities in Provincial Competitive Index (PCI) 2018. It scored 64.04. The PCI looks at several criteria including informal costs, administrative procedures, and infrastructure related to the business environment of Vietnam. It looks at reforms made by provincial and city governments that promote the private sector.
Binh Dinh particularly ranked well for the streamlining of administrative procedures for investment, land, and construction. The province is also home to Qui Nhon – a tourist, coastal city known for its relaxed atmosphere and pristine beaches.
Binh Dinh industries
Existing industries in the province include agriculture, forestry and fishery product processing, furniture, consumer goods, construction materials, mineral processing as well as exports of garments and footwear.
Most recently, FICO corporation will invest in two wind farms in Binh Dinh to prevent grid overload issues. The two wind warms are expected to commence operation in September 2021.
FDI in Binh Dinh
In the first half of 2019, the province had 78 FDI projects with a total capital of US$724.3 million with tourism seeing annual growth of over 20 percent in the past three years.
Investors from Canada, South Korea, Japan, and China to name a few have invested in projects in the province.
The government has encouraged investment in the tourism industry such as hotels and also supporting industries related to wood processing, textiles, and garments.
Most recently a delegation went to the US to seek ways to boost trade and investment ties with US businesses and Binh Dinh.
In addition, Binh Dinh authorities have launched a portal for foreign investors showing step-by-step procedures for setting up a business in the province. The portal provides up-to-date and comprehensive information on overall guidance when setting up in Binh Dinh.
Binh Dinh consists of 37 small-scale IZs out of which 19 are operational.
The upcoming IZ will help boost Binh Dinh’s profile in the international market and further help propels investment as manufacturers look to diversify their operations from the northern and southern areas of Vietnam. Binh Dinh is therefore placed well for future growth.
This article was originally published on Vietnam Briefing and has been republished on ASEAN Briefing.
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