Bắc Giang: A safe and trusted hub for many global powerhouses

The confidence of multinational corporations in Bắc Giang Province's potential and secure business environment have helped it emerge as a preferred location for global powerhouses.

Production lines of power steering hoses for motorcycles and automobiles inside Japan-invested Nichirin Vietnam Co Ltd's factory in Quang Châu Industrial Park. — Photo courtesy of the provincial People's Committee

BẮC GIANG — The recent inauguration of a semiconductor packaging and testing plant in Bắc Giang Province has captured the interest of both domestic and foreign businesses, firmly placing Bắc Giang on the radar of investors.

Hana Micron Vina Co Ltd, a subsidiary of the Korean corporation Hana Micron, on September 16 inaugurated the Hana Micron Vina factory 2 project, in the presence of Deputy Prime Minister Trần Lưu Quang.

Situated in Vân Trung Industrial Park, Việt Yên District, the plant spans an extensive area of 66,000 square meters. Hana Micron Vina has already successfully completed and commenced operations at Factory 1 in 2022. The inauguration of Factory 2 signifies the company's expansion and growth in Bắc Giang.

Looking ahead, Hana Micron Vina plans to amplify its investment in the region, with a projected total capital exceeding US$1 billion by 2025. This substantial investment is expected to generate an estimated revenue of $800 million and create employment opportunities for over 4,000 individuals.

Choi Chang Ho, Chairman of Hana Micron Group, said the company aims to establish a new semiconductor industry ecosystem in Việt Nam, thereby contributing to the diversification of innovative technologies and techniques pursued by the country.

The project undertaken by Hana Micron Vina is just one among several large-scale investments made in the province during the first nine months of the year. The confidence of multinational corporations in Bắc Giang Province's potential and secure business environment have helped it emerge as a preferred location for global powerhouses.

According to the data published by Bắc Giang provincial People's Committee, as of September 15, 2023, the total influx of new investment capital in the province has surpassed $2 billion, representing a nearly 2-fold increase compared to the same period last year. Among these investments are 27 domestic projects with a registered capital exceeding VNĐ5.5 trillion ($229.2 million) and 70 foreign direct investment (FDI) projects with a registered capital of nearly $1.4 billion (five times higher than in 2022).

Leaders of the Bắc Giang provincial People's Committee presented a Memorandum of Investment between Yadea Group (China) and Lideco 1 JSC (Investor of Tân Hưng Industrial Park infrastructure in Lạng Giang District). — Photo courtesy of the provincial People's Committee

Furthermore, 24 domestic projects experienced adjustments, leading to an augmented registered capital of over VNĐ1.7 trillion, nearly seven times the initial amount. Additionally, 29 adjusted FDI projects saw a total capital increase of over $321 million. During the first nine months of the year, domestic investment projects realised a capital of approximately VNĐ2.2 trillion, while FDI investment projects reached about $682 million.

With these achievements, Bắc Giang ranked fourth nationwide in attracting FDI investments during the first nine months of the year, following HCM City, Hà Nội and Hải Phòng.

According to Đặng Thành Tâm, Chairman of Kinh Bắc City Development Holding Corporation, the business received a warm welcome and active support from provincial leaders during their investment process in industrial parks in Bắc Giang. The local authorities showed a strong commitment to resolving challenges and addressing issues faced by investors, ensuring smooth and efficient project implementation.

Chairman of the Bắc Giang provincial People's Committee, Lê Ánh Dương, affirmed that the province will continue its efforts to attract new investment capital, aiming for a 19 per cent increase compared to 2022.

Moving forward, Bắc Giang will reinforce measures to enhance the business and investment environment, as well as boost provincial competitiveness.

Bắc Giang will actively support businesses in investment procedures and assist with their production and operations. Strict inspections will be conducted to address violations in investment projects, particularly those deviating from plans, facing delays, not utilising leased land, or lacking completed environmental procedures.

The province will focus on attracting investment from technologically advanced countries with strong supply chain leadership. Partnerships between multinational corporations, particularly from members of multilateral FTA agreements with Việt Nam such as the CPTPP, RCEP and EVFTA, including the United States, European Union, Japan, South Korea and Singapore, will be prioritised to establish and develop industry clusters across various value chains.

Investment in digital economic sectors and industries based on 4.0 technology platforms, including ICT, digital technology, nanotechnology and biotechnology, will be given priority. 

With the current global emphasis on green development, localities are shifting away from pursuing FDI investments at any cost and adopting a sustainable, long-term approach. The focus is now on attracting projects with high scientific and technological content, environmentally friendly practices, and participation in the global value chain. Key investment attraction sectors include electronics, telecommunications, mechanical engineering, construction materials, new materials and supporting industries.

A newly-built road in Băc Giang Province. — Photo courtesy of the provincial People's Committee

According to investors, to implement this selective investment attraction strategy, Bắc Giang needs to invest in and improve general infrastructure, as well as the infrastructure of industrial parks and clusters. Administrative reforms is crucial but the province must also develop a distinct investment attraction strategy and effectively manage investment projects.

In particular, Bắc Giang should prioritise the planning and development of industrial parks and clusters, along with expediting land clearance in these areas to ensure sufficient land reserves to welcome big investors, especially those belonging to the supply chains of major global corporations like Apple, Samsung and Honda. — VNS

Source:https://vietnamnews.vn/society/1595172/bac-giang-a-safe-and-trusted-hub-for-many-global-powerhouses.html

Views: 1