Binh Duong Province Sees Fast Development by Investment
Breakthrough and growth: Like other provinces, the province started from a low-based economy with an annual growth rate of 3.2 percent. In 1975-1985, the industry made up only 9.6 percent of the economic structure. The main products were ceramics and lacquer. State-owned enterprises were inefficient, other economic sectors were underdeveloped. In the period of transformation (1986-1990) from a centrally planned to the market economy, many enterprises could not stand the test and disband. However, with the encouragement of the province, hundreds of private enterprises came into being. Industrial production maintained a growth rate of 8 percent a year and in 1990 accounted for 13 percent of the economic structure.
Between 1990 and 1995, Binh Duong attracted investment from Ho Chi Minh City; and foreign investors started coming to the province. The correct decision was to develop industry in the Southern part of the province with favorable terrain and location. Industrial zones have been established and infrastructure developed attracting important resources from domestic and foreign investors. Regarding administrative reform, the province issued Decision 1965/QD-UB (1995) accelerating the granting of investment licenses. The efforts have increased the industrial growth rate to 35 percent a year and industrial value of VND1,000 billion, ranking 6th in Vietnam. Since 1996, Binh Duong has continued to develop the industry to make the best use of its advantages in resources and location. The province put practical programs in place and solutions to assist enterprises in increasing the industrial value to VND32,044 billion in 1994, making up 63.3 percent of the economic structure.
Advantages and potentials: Binh Duong is also rich in resources for industrial development such as agricultural produce and minerals. The province is also close to Ho Chi Minh City and other provinces most favorable for consumption and export. Therefore the province can develop the processing industry, textile, and garment, footwear, wooden furniture, and mechanics. Meanwhile, the traditional ceramic industry could also increase several times in value. Binh Duong ceramic with new technology has been developed meeting the export demand in volume, quality, and style. In the coming years, the province will develop electronic, mechanic and other hi-tech industries and attract investment to increase the added value of the products.
Binh Duong’s experience: The experiences of Binh Duong can be applied in other provinces. The interests of the investors are secured by law and investment policy. The constraints of enterprises are timely removed by related authorities. Infrastructure is always built ahead of projects and enterprises are facilitated in their activities. In particular, the communication between enterprises and local authorities is maintained to ensure the smooth operation of investment projects.
