Binh Duong chiefs embrace investment projects

15:10 | 29/03/2013
Binh Duong chiefs last week presented investment certificates to 17 new foreign-backed projects and 12 operational ones in the southern province.

The new projects are worth $376 million, while the existing ones will add $171 million to muscle-up their capital.

The largest of the new projects is the $199.6 million VSIP Binh Hoa complex, which will cover 7 hectares inside Vietnam-Singapore Industrial Park 1. Construction is set to start late this year and the developer is Vietnam-Singapore Industrial Park Company.  Meanwhile, the British Virgin Islands’ URC will add $50 million to its capital to expand its food and beverage manufacturing business.

Other big names among the investors receiving the investment certificates last week were Panasonic, PepsiCo and giant Japanese pharmaceutical company Rohto-Mentholatum. A majority of the investors are from Japan, Singapore, Thailand, South Korea and Taiwan.

In January and February 2013, Binh Duong attracted $365 million in foreign direct investment (FDI), a golden figure in the context of global economic difficulties, said provincial people’s committee Chairman Le Thanh Cung. He added the province expected to attract $1 billion of FDI for 2013.

Last year, Binh Duong reportedly led Vietnam in luring FDI with a 253 per cent rise against 2011 to more than $2.8 billion, equal to more than 17 per cent of total national FDI inflows. The investment focussed on real estate, services and trading, instead of industrial manufacturing as in the past.

Notably, under construction Binh Duong New City will house a $1.2 billion township developed by Becamex Tokyu, a joint venture between Vietnam’s Becamex and Tokyo-based Tokyu, a leading Japanese developer of privately built towns. It was the biggest FDI project licenced in Vietnam in 2012. The venture expects to start earning a profit as early as 2014 from the township by selling as many as 1,000 residences that year. It has plans to eventually build 7,500 residences and commercial facilities in Binh Duong New City, and intends to complete the project by 2022.

Becamex Tokyu, 65 per cent owned by Tokyu and 35 per cent by Becamex, would target to have 1.6 million people living in the Binh Duong area and multinational companies that have set up operations there, said Becamex Tokyu president Hoshino Toshiyuki.

In 2013, Binh Duong province continues to call for investment in the high-tech sector to create high value-added products. Provincial officials said they would encourage investment from diverse sectors to develop the province’s socio-economic infrastructure through varied investment forms, especially public-private partnerships.

By Tuong Thuy

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