Nguyen Van Danh, Director of Binh Duong Industry and Trade Department, Executive of the People’s Committee of Binh Duong Province, and Congressman of Vietnam
Driven by pro-business policies, Vietnam’s south has, for years, attracted foreign direct investments, transforming sleepy towns into industrial powerhouses. Binh Duong is one such manufacturing cluster.
Yet years of development have not seen growth plateau; in fact, it is expected to accelerate in future as the province commits to fast and sustainable economic development.
Since 2016, the government has launched initiatives to create a more attractive investment environment. The relocation of all administrative functions to the provincial administrative centre in Binh Duong New City has made it convenient for investors to handle all paperwork at a ‘one-stop shop’, quickly and efficiently.
“Provincial leaders are also [keen] to support enterprises. They regularly contact them to help solve problems or listen to their suggestions,” said Nguyen Van Danh, director of the Binh Duong Industry and Trade Department. “For Binh Duong to be a choice destination for investors, we would also need to improve the quality of our workforce and transport infrastructure.”
The province is also inviting investors to develop public utilities and infrastructure. It is encouraging new high-tech industries, technology upgrades, staff training and ecological protection.
The efforts have paid off: Binh Duong is one of Vietnam’s top three provinces in terms of FDI value. The province’s average GDP growth was an annual 8.6 per cent during the period 2013-2017, higher than the national average of 6.2 per cent.
Binh Duong now has 28 industrial parks and 12 industrial clusters, most of them with modern facilities such as the Vietnam – Singapore Industrial Park (VSIP).
The wood-based products industry accounts for a significant proportion of Binh Duong’s export turnover—over 14 per cent. It is one of the province’s highest income earners and generates about US$4 billion, half of Vietnam’s total wood export turnover.
Mr Danh, who is also an executive of the People’s Committee of Binh Duong Province and a congressman of Vietnam, said, “The next step [for us] is to prepare funds so we can respond quickly to investors executing their projects.”
AN ECONOMIC MIRACLE
Binh Duong is a success story because it opened its doors and investors, attracted by the perks, came in droves.
But for the latter, thriving in new territory is not without its challenges. In order to succeed, they must know how to navigate the market. They need to expend substantial energy to understand consumer tastes and preferences, and local customs. They must focus on training so that local staff are capable of raising product quality levels.
With Binh Duong’s commitment to expand international trade relations, it is no wonder that BIFA Wood Vietnam 2018 has the support of the provincial government.
Mr Danh has promised to “create the best conditions for the show” so that the wood processing industry in Binh Duong and elsewhere in the country has access to modern technology to meet their business needs.
He said, “BIFA Wood Vietnam 2018 is one of the trade promotion activities that will push the province’s economic development. The fair’s participants will benefit directly, but so will peripheral sectors such as tourism, mechanical engineering and logistics. I am sure it will also promote further investment here.”