(VEN) - More than 74 percent of the US$40.6 billion worth of foreign direct investment (FDI) in the southern province of Binh Duong is found in the processing and manufacturing sector, while FDI in high technology and supporting industries (SI) remains modest.Lack of supporting industry industrial parkBinh Duong has become a top-five province in Vietnam in terms of supporting industry development.Nguyen Thanh Ha, Deputy Director of the Binh Duong Provincial Department of Industry and Trade, said Binh Duong has been developing industries producing materials and accessories for textile-garment, leather and footwear, mechanical engineering, and electrical-electronics sectors. Although they have significantly improved, these supporting industries just meet 40-45 percent of domestic textile-garment and leather and footwear manufacturers’ demand for production materials and accessories, 10-20 percent of the demand by less-than-nine-seater automobile producers/assemblers, and 15 percent of the demand by electronics and other information and communication technology (ICT) enterprises.Binh Duong has prioritized and encouraged supporting industry development to attract investment in the field. A problem is that the province hasn’t had an industrial park specifically designed for supporting industries.Thaco Industries General Director Do Minh Tam believes that Binh Duong has advantages to build a supporting industry industrial park, including a strong business community, infrastructure advantages, land resources, and the support of local authorities.Investment attractionThe Binh Duong Industrial Zones Authority’s data show that as of the end of May 2024, the province-based industrial parks attracted 2,453 effective FDI projects totaling US$29.74 billion in registered capital, more than half of which is found in supporting industries. The number of major supporting industry enterprises/projects in the province has increased, while the sector’s businesses currently total nearly 2,300, including 442 textile and garment enterprises, 172 leather and footwear companies, 593 wood processing enterprises, and 710 mechanical engineering companies.Large supporting industry enterprises in the province include the US$1-billion, 42-hectare automobile tire and airbag project by Kolon Group (the Republic of Korea); the US$1-billion-plus synthetic fiber production project of Polytex Far Eastern (Vietnam); and the US$186.2-million project of the Nitto Denko Company.Many supporting industry projects have increased investment capital and expanded production in the province. Recently, the Panasonic Electric Works Co., Ltd. officially put into operation a wire connection device manufacturing plant in the Vietnam-Singapore Industrial Park 2 (VSIP 2).Nagato Takahiko, Head of the Japanese Business Association in Binh Duong, said the province is a preferred destination for Japanese supporting industry investors. (ICE HO CHI MINH CITY)

Fonte notizia: Vietnam Economic News