Reasons for Binh Dinh to be investment destination
WVR - Catching up with the new development trend, domestic and foreign businesses flock to Binh Dinh, investing in a series of large-scale projects.
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| Binh Dinh province organized an investment promotion delegation in the Republic of Korea in 2023. (Photo: VNA) |
Binh Dinh is a South Central coastal province, located in the Central key economic region. The province’s territory stretches 110 km in the North-South direction. The province has a crucial economic position, located at the midpoint of the North-South railway and road transport crane.
As the closest and most convenient gateway to the sea in the Central Highlands, Southern Laos, Northeast Cambodia, and Thai Lan through National Highway 19 and Quy Nhon Port, Binh Dinh has opportunities for international trade and integration.
Binh Dinh has been a chosen destination for investors. First, Binh Dinh has a particularly important geo-economic position in regional and international exchanges, located at the midpoint of the North-South railway and road transport crane. At the same time, it is close to the Central Highlands provinces, 300 km from Bo Y International Border Gate - Kon Tum province (through Laos); 280 km from Le Thanh Border Gate - Gia Lai province; stretching along 134 km of coastline.
In addition, Binh Dinh has abundant natural resources, humanistic tourism resources, and human resources. In the Master Plan on Socio-Economic Development of Binh Dinh province up to 2020 approved by the Prime Minister (Decision No.54/2009/QD-TTg dated April 14, 2009), Binh Dinh is determined to become a province with modern industry and one of the centers of socio-economic development, actively contributing to the development of the Central Key Economic Region and the whole country.
Second, Binh Dinh has convenient transportation infrastructure. In particular, National Highway 19 is building a North-South railway passing through Binh Dinh and a highway connecting Binh Dinh with the Central Highlands provinces. Trans-Vietnam Railway, the airport near the city and industrial zones is being upgraded into an international airport. The seaport is located in the city and is being expanded to accommodate ships with a tonnage of over 70.000 DTW.
In particular, Binh Dinh has Quy Nhon Port - one of the 10 major seaports in the country with a sheltered anchorage area, wharves and means of safely welcoming ships with a tonnage of 30.000 tons. With such a transportation system, Binh Dinh is connected and easily trades with the Central Highlands, Northeast Cambodia, Southern Laos provinces, and Thailand.
With a long and beautiful coastline and focused investment in transport infrastructure connecting to the sea, Binh Dinh has created a strong attraction for large investors, especially real estate and resort tourism businesses.
Third, the clear policy of local authorities is one of the important reasons in attracting investment. The Government is actively attracting foreign investors, so it will provide the best support for administrative procedures. Investing in the province, investors can apply the highest investment incentive policies of the Government of Vietnam (CIT rates, corporate income tax exemption - reduction, import tax for assets, land rent exemption - reduction).
In addition, there are also additional incentives from Binh Dinh province. Specifically, support for labor training, trade promotion, support for electricity and water supply, and establish investment procedures. When choosing a location in an industrial cluster, it takes no more than a week to get an investment license, and no more than 120 days to start construction.
Besides, creating an open and quality investment environment is still one of the important solutions that Binh Dinh focuses on in the upcoming year. Coming to Binh Dinh, businesses and investors will be given every advantage to carry out projects successfully and develop sustainably.
Fourth, economic zones and industrial clusters have full infrastructure to meet the investment needs of businesses and infrastructure rental prices are low compared to other places. The rental price for infrastructure in economic zones, industrial clusters is about 25USD-60USD/m2/50 years, cheaper than some other industrial clusters across the country. There are many industrial clusters in every part of the province for businesses to easily choose from.
Binh Dinh has taken advantage of and maximized the province’s potential in various aspects, such as: infrastructure, policies, natural resources, and human resources to attract and support investors.
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| An overview of Quy Nhon city. (Photo: VNA) |
Fifth, Binh Dinh is an economically developing province, so it attracts a skilled workforce moving from large cities and industrial zones. The province has 3 universities, many colleges and vocational schools; can provide 10.000 on-site workers annually; there is a trend of shifting local laborers working far away back to the province. Currently, the biggest advantage of Binh Dinh is its young, abundant, and stable labor force. Binh Dinh’s labor productivity has recently improved significantly in the direction of increasing steadily over the years and is the province with the highest labor productivity growth rate among the Northern and Central Coast provinces.
Furthermore, Binh Dinh is developing strongly and the investment environment is highly competitive. At the same time, local authorities always “roll out the red carpet”, regularly organizing promotional activities to attract domestic and foreign investment, contributing to maintaining high economic growth. It can be said that Binh Dinh is an open province for businesses in all fields.
Sixth, currently there are still few FDI enterprises so labor competition is low. Recruiting workers is not too difficult and labor is stable, workers do not job hopping between factories, and minimizing training costs. Binh Dinh’s population is 1.6 million people, including more than 60% are of working age. The labor source is relatively abundant with a young population, and labor productivity tends to improve over the years.
Seventh, labor costs are low compared to many other localities. Minimum salary from 135 USD-152 USD/person/month, which is lower than Da Nang, Ha Noi, Ho Chi Minh City, Binh Duong, and Dong Nai (173 USD-195 USD/person/month).
Eight, there is a huge amount of potential labor locally. In particular, a large number of workers graduate every year from high schools, colleges, and universities in Binh Dinh with good English skills and the ability to learn and absorb advanced and modern technology much faster than some other countries (assessed by foreign investors).
In addition, green and digital transformation create strong changes in economic restructuring and improve the investment and business environment, enhancing local competitiveness. Training and improving the quality of human resources according to the province’s development orientation, especially human resources in information technology, technology engineering, tourism, high-tech industry, and high-tech agriculture.
Ninth, a clean living environment, security, and political stability. As a province located along the coast, the living environment is fresh and less polluted. The stable social order and security situation will create peace of mind for investors when investing in Binh Dinh. Medical, educational, entertainment, shopping, and banking services are of international standards. In addition, Binh Dinh has now become a safe and friendly tourist destination, attracting the attention of domestic and international tourists.
Tenth, Binh Dinh is the center of the raw material area. The province is neighboring Quang Ngai, Phu Yen provinces, and the entire Central Highlands region, so most raw material areas are within close distance if a factory is located here.
The unity of policies, synchronous solutions and the consensus and determination of the entire province opens up expectations that in the upcoming years, Binh Dinh’s promotion and investment attraction activities will continue to achieve important results, serving as one of the breakthrough stages to create motivation for socio-economic development.
