I.General information about Binh Phuoc province
Binh Phuoc is a province located in the Southern Key Economic Zone, with an area of 6,873.6 km2, adjacent to Binh Duong, Lam Dong, Dak Nong, Tay Ninh and Kingdom of Cambodia, 120 km from Ho Chi Minh City. The province has 11 administrative units including 01 city, 02 towns, 08 districts, population of 1 million people. Dong Xoai city is the economic, cultural and social center of the province.
During the last term, the province’s average growth rate in the 2016-2020 period reached 7.25%. The economic structure has shifted in the right direction. By 2020, the proportion of agriculture, forestry and fishery will account for 20.5%; industry and construction accounted for 43%; service sector accounted for 36.5%. The scale of the economy is increasingly expanding, reaching 68,000 billion VND by the end of 2020, an increase of 1.64 times compared to 2015. GRDP per capita is higher than the national average, implemented by 2020 will reach 67.3 million VND, equivalent to 3,000 US dollars, 1.54 times higher than 2015.
In 2021 due to the impact of the Covid-19 pandemic, the province’s economic growth will reach 6.32%, which is a decent growth in the condition of the Covid-19 pandemic, being the province with the highest growth in the Southeast region compared to the previous year and ranked 20th in terms of growth compared to the whole country. GRDP per capita reached 74.9 million VND, up 8.1% compared to 2020. Export turnover reached 3 billion 500 million USD, up 17.8% compared to 2020 and reached 112.9% Compared with the plan; import turnover reached USD 2 billion 502 million, up 41.2% compared to 2020 and reached 147.1% compared to the year plan. Attracted 63 projects of foreign investment , with a capital of 514 million USD, equaling 175% of the number of projects and 117% of the registered capital compared to 2020, reaching 128.5% of the plan. Attracting domestic investment in 100 projects, with a capital of 12,700 billion VND, reaching 127% of the plan. The value of agricultural, forestry and fishery production in 2021 will reach VND 29,867 billion, an increase of 3.8% compared to 2020. The province’s IIP industrial production index increased by 17.8% compared to 2020, exceeding the plan. The target is 3.8%, of which the processing and manufacturing industry is the main growth motivation of the province with an increase of 18.59%.
II.Potential and strengths of Binh Phuoc province
1.Location
Binh Phuoc has a strategic geographical position, plays an important role in the new economic corridor, is one of eight provinces of the Southern Key Economic Region, is the gateway for economic, cultural and social exchanges among the Southeast, the Mekong Delta, the Central Highlands and the world, especially with Cambodia, Laos, and Thailand.
Looking to the future, Binh Phuoc has increasingly favorable conditions for the development of the province and the whole region.
2.Infrastructure
The province’s transport infrastructure system is invested synchronously and gradually modernized, the province has arterial traffic routes such as National Highway 13, 14, DT.741 which are convenient in inter-regional traffic connection, connecting with Central Highlands provinces, Binh Duong, Tay Ninh, Ho Chi Minh City, Cambodia through Hoa Lu international border gate.
It is expected that by 2025, the Ho Chi Minh City – Thu Dau Mot – Chon Thanh expressway will be completed; Chon Thanh – Dak Nong expressway, DT753 road and Ma Da bridge upgraded into national highways to connect with Long Thanh international airport in Dong Nai province and Cai Mep – Thi Vai port in Ba Ria – Vung Tau province, shorten the distance and travel time to seaports, airports, better serve the needs of travel, freight is urgently deployed. In the future, there is a trans-Asian railway, create a boost for the province’s socio-economic development.
Binh Phuoc’s electricity and water supply system meets the needs of daily life and production and business of enterprises. The postal and telecommunications network has covered all communes, wards and townships, meeting the needs of international communication and digital information transmission. Mobile phone signal covers the entire province. Fiber optic network is transmitted to most telecommunications stations in communes, districts and cities in the province.
3.Land
Binh Phuoc province has the largest area in the South, with a total area of 687,355 hectares; in which agricultural land 616,307 ha, non-agricultural land 70,975 ha. Binh Phuoc’s land is fertile (mainly basalt red soil), the mild climate is very favorable for the cultivation of long-term industrial crops such as rubber, cashew, pepper, fruit trees and raising cattle, poultry. Binh Phuoc is the centre of rubber and cashew trees, with an area of 247,000 hectares of rubber and 141,595 hectares of cashew.
In addition, the province has the advantage that the fund of large clean land of the Vietnam Rubber Industry Group can be assigned to the locality for the development of industrial, commercial – service and urban parks.
Currently, Binh Phuoc has 13 industrial parks with a total area of 6,061 hectares, the occupancy rate is 53.5%, of which Becamex Binh Phuoc industrial park has an area of 2,450 hectares, the occupancy rate is 11.6% and the industrial park is located on an area of 2,450 hectares. Minh Hung – Sikiko industry has an area of 655 hectares, the occupancy rate is 39.7%. These are two new industrial parks, with a fairly large area, synchronous and modern infrastructure and convenient transportation, very suitable for investors. In the period of 2021-2030, the province will expand 3 more industrial parks with a total area of 2,500 ha, of which North Dong Phu Industrial Park 900 ha, South Dong Phu Industrial Park 600 ha, Minh Hung – Sikiko Industrial Park 1,000 ha; new planning of 5 industrial parks with a total area of 6,800 ha, including 3,300 ha Dong Phu Industrial Park near Binh Duong province, Ho Chi Minh City and Dong Nai province. In addition, the province has Hoa Lu border-gate economic zone with an area of 28,000 hectares ready to meet the needs of investors.
Regarding investment attraction, up to now, the province has 354 FDI projects, with an investment capital of 3 billion 369 million USD. In which, 15 projects are from Singapore investors with an investment capital of 286 million USD, accounting for 8.5% of the province’s total FDI capital, the main field are raising cattle, poultry, and slaughtering cattle, poultry; production of animal feed; manufacture batteries…
Currently, the industrial zones of Dong Nai and Binh Duong provinces in the Southeast have been filled and the rental price is very high 150 USD/m2 for 50 years, so investors have moved to Binh Phuoc province to invest with a large and clean land fund, low land rent, about 80-90 USD/m2.
4.Human resources
Binh Phuoc province has abundant human resources, the province’s population of 1 million people, of which the province’s labor force aged 15 and over is over 617,000 people, accounting for 61% of the population. Urban workers accounted for 18.79% and rural workers accounted for 71.21%. The current population of Binh Phuoc is a golden population, an important resource for socio-economic development. This can be considered as a comparative advantage of Binh Phuoc compared to other localities as well as the general level of the whole country when the population structure is younger.
In recent years, the labor structure has changed, reducing the proportion of laborers working in agriculture, forestry and fishery, increasing the proportion of workers working in industry, construction, services. They are suitable with the current economic restructuring situation of the province. In addition, in the period 2016-2020, vocational education institutions in the province have recruited more than 53,000 workers, the rate of graduates having jobs reached over 95%.
The quality of general education in the province today is very good. The province is having a policy of inviting investors with brands and prestige such as FPT Joint Stock Company to build high-quality inter-schools, universities or university branches; interested in developing vocational education and training institutions to meet the labor needs of investors.
Currently, the province has a policy to attract high-quality human resources from all over the world; planning social housing projects to serve housing needs for workers working in industrial zones; build hospitals, schools and cultural institutions to ensure the material and spiritual life of employees.
5.Business investment environment
5.1. Regarding incentive policy of investment:
Binh Phuoc province has issued policies to encourage, give incentives and support investment in the province. In which, in addition to fully stipulating the preferential content according to the regulations of the Government of Vietnam, the province also stipulates a number of specific preferential policies for socialization in the fields of: Education – training, vocational training, health, culture, sports, tourism; policies to support infrastructure investment for enterprises investing in agriculture and rural areas; support for investment projects in key industrial products of the province; supporting investment in industrial cluster infrastructure.
a) For the field of socialization of education – training, vocational training, health care, culture, sports and tourism:
– Socialization investment projects not in urban areas: To be leased by the State with completed ground clearance for construction of socialized works in the form of land lease free of land rent for the entire lease period.
– Investment projects on socialization in urban areas:
+ For urban areas in Dong Xoai city: 25 years of land rent exemption if it is not on the list of industries eligible for investment incentives; land rent exemption for 30 years if it is on the list of industries eligible for investment incentives; land rent exemption for 35 years if it is on the list of fields of special investment incentives.
+ For urban areas in socio-economic difficulties: Exemption from land rent for 30 years if not on the list of industries eligible for investment incentives; land rent exemption for 35 years if it is on the list of industries eligible for investment incentives; 40 years of land rental exemption if it is on the list of industries with special investment incentives.
+ For urban areas in extremely difficult socio-economic areas: Exemption from land rent for 35 years if it is not on the list of industries eligible for investment incentives; 40 years of land rental exemption if it is on the list of industries eligible for investment incentives; land rent exemption for the entire lease term if it belongs to the list of industries with special investment incentives.
b) For investment projects in agriculture and rural areas:
The project of intensive processing of products along the value chain from wood, processing rubber latex, processing cashew nuts, pepper, and fruit processing is supported by the state budget 10 billion VND/project to build. infrastructure for waste treatment, transportation, electricity, water, factories and equipment purchases in the project fence.
c) For investment projects in key industrial products of the province, including: cashew nut processing, fruit processing, rubber product processing, wood processing; processing food from pork, chicken (which is the final consumer product that does not have to go through other processing stages); mechanical and manufacturing industrial products; supporting industry.
When investors start construction of items in the project implementation land, Binh Phuoc province uses development investment capital from the provincial budget to invest in building essential infrastructure such as electricity system, communication, water supply and drainage, roads to outside the fence of the project site.
5.2. About administrative procedure reform
The province has stepped up administrative procedure reform. Currently, 100% of administrative procedures are handled by online public service level 4 and connected on the National Public Service Portal. When carrying out administrative procedures, investors only need to contact online or directly with a focal point, the Public Administration Service Center to guide the procedures, receive documents and receive settlement results. The time to handle administrative procedures of investment at all stages is shortened to 2/3 of the time compared to the Government’s regulations. The work of digital transformation in enterprises is also concerned by the province, with the goal of supporting people and businesses to apply platforms to improve business efficiency and management efficiency in order to improve capacity, competitiveness, and create new values for businesses.
5.3. About the planning of the province
The planning strategy and development orientation of important sectors and fields of the province have been developed early, in accordance with the national planning and the planning of the Southeast region. It is expected that in the third quarter of 2022, the province will complete and submit to the Prime Minister for approval. On that basis, the province will determine projects and priority order to call for investment attraction in the 2021-2030 period.
III. Orientation to attract investment of the province in the coming time
1.About industry
a) Wood processing industry
The province has the advantage of abundant raw materials from rubber wood with an area of 247,000 hectares. The average annual exploitation area is about 20,000 ha, the output is about 4 million m3/year. There is also an area of melaleuca forest, cashew wood and materials come from provinces such as Dak Lak, Dak Nong and Cambodia. Currently, Binh Phuoc has about 300 wood processing establishments, of which 96 are large-scale enterprises, including 10 FDI enterprises, the remaining wood industry enterprises are small and medium-sized. Leading in the production and export of this item is VRG Dongwha MDF Wood Factory, a joint venture between Vietnam Rubber Industry Group and South Korea’s Dongwha Group, with a capacity of 1,000 m3/day and 300,000 m3/year. Especially recently, Binh Phuoc is being considered by the wood capital of Yoshino, Japan as a destination to receive Yoshino’s raw wood for the production of finished products, assembled for export.
In the coming time, the province will prioritize attracting large-scale wood processing and furniture investment projects to improve the value of local wood materials. Binh Phuoc wishes to promote international cooperation, build a two-way cooperation relationship in the wood industry with Singapore.
b) Food processing industry
– Cultivation: The province has abundant raw materials such as: Cashew tree area 141,595 hectares, pepper 15,000 hectares, fruit trees 12,358 hectares, vegetables of all kinds 27,663 hectares. However, the cultivated products are mainly preliminarily processed, exported raw, and have not been deeply processed, so the added value is low and has not brought into full play the potential and strengths of the locally available raw materials.
– Livestock production: In recent years, the province’s livestock has made a breakthrough, the value of livestock production accounts for 20% of the agricultural structure; especially pig and chicken raising with industrial farm scale has developed strongly in recent times. The province’s total pig herd currently has about 02 million heads, and 9 million poultry heads. Currently, the province has only 1 investment project in processing and preserving meat and meat products of CPV Food Co., Ltd (Thailand) with a total investment capital of 110 million USD.
In the coming time, the province will give priority to attracting investment projects in food processing from cultivation and husbandry products such as cashew nut processing, fruit processing, spice processing, pork, chicken food processing in the direction of deep processing, not attracting projects using old technology, attracting projects with high international competitiveness in terms of scale, productivity, quality, food safety, and environmental protection, social responsibility, saving resources. Priority is given to attracting large-scale enterprises, the FDI sector has financial potential, modern technology, consumer markets and the formation of many serving satellites in order to promote the advantages of available raw materials of locality.
c) Processing industry of rubber products
Binh Phuoc is the locality with the largest area of rubber trees in the country, with more than 247,000 hectares, the output of dried latex reaches 300,000 tons/year. Currently, the province’s latex products are mainly processed and then exported. There is no project on deep processing of rubber products.
In the near future, the province will attract projects to produce automobile tires and tubes, components in the auto industry using raw materials from rubber latex; products from rubber latex for consumption; projects with modern technology and production lines.
d) Electronic industry
Currently, in the province, there are 04 companies producing electronic components, with a total investment capital of 42.6 million USD, accounting for 1.3% of the province’s total FDI, including Sung Ju Co., Ltd is a subsidiary of Samsung Group with an investment capital of US$09 million. Main products are auxiliary raw materials, CDP products, DVDP electronic components, plastic injection and connectors, electronic components for the automotive industry. Investment attraction in the electronic industry of the province is still low, so in the coming time, the province will give priority to attracting investment from large corporations to invest in the electronics industry, manufacturing electronic components for export.
e) Supporting industry
Currently, the province has 13 investment projects in the fields of supporting industry, material industry, mechanical industry with a total investment of about 60 million USD, accounting for 1.8% of the total FDI capital of provice. Main products include: Frame, tires, wheels, car lights, horn and auto parts, high-precision molds, mechanical parts, high-quality standard plastic parts. However, most of the enterprises investing in the province in this field have limited scale and resources, and have not yet brought into full play their potential. Therefore, in the coming time, the province will give priority to inviting large corporations to invest in the development of supporting industries, mechanical industry, and manufacturing machinery and equipment in the field of agriculture and industry.
f) Industrial park infrastructure
Among the current industrial park infrastructure investors in the province, there is only 1 investor with FDI capital from Korea investing in building infrastructure of Minh Hung industrial park – Korea, with an area of 192 ha, investment capital is 13 million USD. This is an industrial park exclusively for Korean investors, which is well-invested and has the fastest filling progress. The province invites Singaporean investors with experience in the field of industrial park infrastructure investment who are interested in learning about investment in infrastructure construction 06 industrial parks in Dong Phu district, each with a scale of about 500 ha, 01 industrial park in Chon Thanh district with a scale of 300 ha and 01 industrial park in Hon Quan district with a scale of 220 ha.
2.Urban development, trade and services
Currently, Binh Phuoc has 11 urban centers that are the administrative, cultural and social centers of the province and 11 districts. Most urban areas in the province are small in size, with few urban populations, creating an unattractive market, making it difficult to promote investment in providing infrastructure, services and utilities. Therefore, in the coming time, the province encourages investors to invest in this field.
The province’s urban development orientation in the coming period is: Developing urban areas combined with trade, services and entertainment, including: resorts, 4-star, 5-star hotels, commercial center, golf course, specifically: the province calls for investment in 04 golf, urban and commercial complex projects at Phuoc Hoa Lake, Chon Thanh district; Suoi Giai lake, Dong Phu district; Bau Lach grassland in Bu Dang district and Thac Mo lakeside in Phuoc Long town.
Regarding commercial centers and supermarkets: The whole province has 03 commercial centers, 05 general supermarkets, 02 specialized supermarkets, the number is still small, not meeting the increasing demands of people and investors. In the coming time, the province calls for investment in building 06 high-class commercial centers in Dong Xoai, Phuoc Long, Binh Long, Chon Thanh, Dong Phu and Phu Rieng; 04 supermarkets in Dong Xoai, Binh Long, Phuoc Long, Chon Thanh. In addition, the province invites investment to build wholesale markets; border trade infrastructure; logistics center system – ICD port.
3.About tourism
The province has a lot of potential for tourism development, but has not been exploited. Up to now, the province only has the historical tourist area of Ta Thiet Regional Command in Loc Ninh district, which has been put into operation, but the scale is still small, there are no 4-star or 5-star hotels.
In the coming time, the province will prioritize attracting investment in tourism projects associated with the construction of 4-star and 5-star hotels at Suoi Cam Lake, Dong Xoai city, Suoi Giai lake tourist area, Dong Phu district, Ba Ra tourist area, Phuoc Long town, Bu Lach grassland tourist area, Bu Dang district, expanding Ta Thiet Regional Command tourist area, Loc Ninh district.
4.About agriculture
With the advantage of a large and open agricultural land fund, the province has a policy of developing high-tech agricultural zones to invite investors, especially Singaporean investors with extensive experience in the field to invest in Binh Phuoc, on the basis of promoting comparative advantages and value chains, focusing on products of high economic value, meeting the export demand to countries in the region and the Europe market, United States.
5.About vocational training
Currently, Binh Phuoc has 23 operating vocational education institutions, including 2 colleges, 3 intermediate schools, 8 vocational education centers – continuing education, 4 vocational education centers, 6 units have registered vocational education activities. In general, vocational schools in the province are small in size, only basically meeting the labor needs of enterprises with low skill levels.
In the coming time, the province will give priority to calling for investment in 02 projects of vocational training schools at intermediate and college levels with a minimum size of 3,000 students/school and 02 investment projects in universities or university branches with minimum scale of 2,000 students/school in Dong Xoai city, Chon Thanh district, Dong Phu district to meet the demand for recruiting managers and training highly skilled workers for enterprises.
6.About the medical field
Binh Phuoc currently has only 01 private hospital with 200 beds, the rest are private clinics with small scale, so patients are very limited in choosing high quality medical examination and treatment facilities.
In the coming time, the province is interested in attracting investment to build private hospitals, specifically: Loc Ninh district, with a minimum size of 100 beds; in Binh Long and Phuoc Long townships, each locality has 01 general hospital, with a minimum size of 150 beds; Dong Xoai city, with a minimum size of 200 hospital beds.
The above are the potentials and strengths of Binh Phuoc province and the province’s investment attraction orientation in the coming time. Binh Phuoc province is always ready to welcome investors, especially investors from Singapore.
Binh Phuoc province is committed to always stand by and accompany businesses and investors, ready to create the most favorable conditions for businesses’ production and business activities.
