A growing Mecca for investors

14:19 | 20/09/2010
Bac Ninh province is becoming one of the most attractive places for foreign industrial manufacturers in northern Vietnam.

According to a Bac Ninh People’s Committee report, the province’s foreign-invested enterprises’ industrial production value in the first half of this year reached $395.7 million, three times higher than the same period last year, and accounting for 55 per cent of the local industrial production value.

VSIP is one foreign investor to have prospered in the province

The report also shows that with the advantages of geographical position and improved investment climate, Bac Ninh is growing a good industrial manufacturing base.

Located 30 kilometres northeast of Hanoi, Bac Ninh is easily accessible to seaports in Haiphong city and Noi Bai international airport. The province is also accessible to China via the National Highway 1A.

Bac Ninh’s recent high industrial growth came as a growing number of foreign investors set up manufacturing factories in the province. For example, Taiwanese IT contractor Foxconn is running two factories in Bac Ninh and Japanese office equipment maker Canon has two factories in the province’s Que Vo and Tien Son industrial parks.

Especially, the local industrial production grew more rapidly since Korea’s Samsung started the first production phase of its mobile handset manufacturing facility in  Bac Ninh late last year. The facility’s industrial production value was reported to account for 24 per cent of Bac Ninh’s during the first half of this year. Last week, Samsung Electronics Vietnam announced  to have reached $1.6 billion in export turnover since its inception.

The company’s export value will grow much higher when the facility runs its full capacity in 2012 to provide about 100 million handsets annually.

Vu Duc Quyet, director of Bac Ninh Industrial Zones Management Authority, said industrial sector was the priority of the province in luring foreign investors. By the end of August this year, Bac Ninh licenced 192 foreign invested projects, most of which were in industrial sector.

This week, Singaporean Mapletree starts construction of a large logistics centre in Vietnam-Singapore Industrial Park Bac Ninh, that will contribute to encourage more foreign and domestic manufacturers to set up factories in the province.

The logistics centre, covering 55 hectares, will feature both bonded and non-bonded built-to-suit and multi-tenanted warehouse facilities, as well as an inland container depot. When completed, it will accommodate about 280,000 square metres of modern logistics space.

However, foreign manufacturers said the shortage of electricity and water supply and lack of accommodation for workers, which were their major challenges to do business in Bac Ninh, needed to be timely removed. 

Ngo Sy Bich
Vice director of Bac Ninh Provincial
Department of Planning and Investment

Official statistics shows Bac Ninh’s economy maintained its impressive growth impetus during the first six months of 2010. I believe that our provincial socio-economic picture this year and in the next few years will be bright. Thanks to the global and Vietnam’s economic recovery, foreign and domestic investment inflows in the province, especially in the local  industrial parks, during the first half of this year considerably grew.

During January-June period, Bac Ninh licenced 24 foreign direct investment (FDI) projects worth $159.16 million and 55 domestic projects capitalised at roughly VND6.7 trillion ($353.51 million). Among those, there were 17 FDI projects valued at $97 million and 14 domestic projects worth VND1.25 trillion ($66.34 million) licenced in the local industrial parks.

Thus, by the end of June this year, Bac Ninh is home to  248 FDI projects with the total registered investment capital of $2.75 billion and 422 domestic projects worth VND40.48 trillion ($2.13 billion). Local industrial parks alone accommodated 183 FDI projects worth $2.29 billion and 232 domestic projects capitalised at VND15.54 trillion ($821.2 million).         

We have seen more foreign investors seek investment opportunities in Bac Ninh with most coming from Taiwan, Hong Kong, China, Singapore, South Korea, Canada and Slovakia. This is really a promising signal of Bac Ninh’s improved business climate.

Ha Sy San
Vice director of Bac Ninh Provincial
Department of Industry and Trade

Industrial sector was considered as the brightest point in Bac Ninh’s socio-economic growth during the first half of 2010. The province’s industrial production value between January and June hit VND14.28 trillion ($754.39 million), an on-year increase of 88.7 per cent and reaching 62  per cent of the annual target. Of the total, the  industrial production value of foreign-invested enterprises made up more than VND8 trillion ($424.59 million), or 56.3  per cent of the province’s, a triple rise against the same period last year and reaching 75 per cent of the annual target.

Bac Ninh’s export earnings surged to fetch $835.74 million in the first half of this year, soaring 153.3 per cent on-year and fulfilling 66.86  per cent of the annual target. Of the total, the foreign-invested sector made a contribution of 96 per cent, particularly Canon Vietnam and Samsung Electronics Vietnam.

In the first half of this year, the province’s import turnover was reported to reach $850.83 million, a 144.48 per cent on-year increase and making up 74 per cent of the annual target. Of the total, the foreign-invested sector fetched $739.88 million, a surge of 180.2 per cent on-year.

The province’s total retail sales and services were reported to reach over VND8 trillion ($423 million) between January and June, up 48.6 per cent on-year and fulfilling 61.6 per cent of the annual target.

With the above figures, I firmly believe that Bac Ninh’s economy in general and industrial production and services in particular is on the impetus of strong recovery.

Do Quang Vui
Director of Bac Ninh Provincial Department of Labour-Invalids and Social Affairs

I see that Bac Ninh’s socio-economic situation has quickly recovered in the first half of 2010, with significant growth in almost industries and sectors. Production and business activities of all enterprises in Bac Ninh obtained positive results, creating momentum for fulfilling the province’s socio-economic targets set for this year.

With regard to the employment issue, in the first half of this year, Bac Ninh created new jobs for 12,256 workers, including the export of 1,232 workers, up 26.3 per cent on-year, reaching over 48 per cent of the year’s target.

By the end of June, businesses across the province employed 98,900 labourers, comprising a majority of 66,950 people in private enterprises, 30,600 people in foreign-invested companies and 1,560 people in state-owned ones. The rate of skilled workers in Bac Ninh increased from 29 per cent in 2009 to 30.29 per cent at the end of 2010’s first half. The urban unemployment rate fell to 3.33 per cent.

Only four strikes outbroke across the province in the first six months of this year while there were up to 20 strikes in the corresponding period of 2009.

 

By Nhu Ngoc

vir.com.vn

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