- Binh Phuoc province, one of many main industrial hubs in Vietnam’s Southern Key Financial Area, is understood for its industrial, agricultural, business, and repair funding.
- Following the profitable mannequin of Binh Duong province, Binh Phuoc has more and more attracted new funding in infrastructure in industrial parks.
- Vietnam Briefing highlights the province together with three localities ripe for funding.
Vietnam’s Binh Phuoc province, a part of the Southern Key Financial Area (SKER) is the most important amongst nineteen provinces in Southern Vietnam.
Binh Phuoc holds important geographic significance because the province isn’t solely a key connection between the Southern Highland provinces and business middle Ho Chi Minh Metropolis via Nationwide Freeway 13 however can also be adjoining to Cambodia via the Hoa Lu worldwide border.
Particularly, it solely takes round one and a half hours to journey from Ho Chi Minh Metropolis’s Tan Son Nhat Worldwide Airport to Binh Phuoc province. Regardless of not having a significant seaport, Binh Phuoc does have a river port at Track Be. Such a positive location makes Binh Phuoc province a sexy vacation spot for funding circulation.
In 2021, as per the Binh Phuoc Division of Statistics, Binh Phuoc’s gross home product (GRDP) reached VND 46,200 billion (US$2 billion), up over 6.3 p.c in comparison with that of 2020. This makes Binh Phuoc the locality with the very best development charge within the Southeast space and ranks twelfth within the nation for 2021.
FDI and enterprise setting
For 2021, trade and development dominated Binh Phuoc’s economic system, adopted by companies at 30.44 p.c and the remaining 23.33 p.c taken up by agriculture, forestry, and fishery. Moreover, per capita earnings in Binh Phuoc has reached VND 76 million or US$3304/particular person/12 months, up 9.51 p.c in comparison with that of 2020.
Together with spectacular development within the trade sector, export turnover and FDI additionally confirmed improved efficiency in 2021 regardless of the pandemic. In line with the Binh Phuoc Division of Statistics, in 2021, export turnover hit US$3.5 billion, up 17.8 p.c in comparison with 2020, exceeding 12.9 p.c of what has been deliberate.
In distinction, import turnover reached virtually US$2.2 million, up 32.73 p.c in comparison with 2020, exceeding greater than 1 / 4 of what was deliberate. This implies, in 2021, the province noticed a commerce surplus of US$1.3 billion.
In 2021, there have been 66 new FDI initiatives in Binh Phuoc with a registered capital of round US$600 million, which is 88.5 p.c up within the variety of initiatives and thrice up in capital quantity. Sources of FDI inflows throughout 2021 primarily got here from China, South Korea, and Hong Kong.
Alternatives in industrial actual property
Alternatives for industrial actual property in Binh Phuoc could be attributed to 3 components.
Firstly, the prerequisite lies within the authorities insurance policies and pointers. As acknowledged in Choice 518/QDTTG, Binh Phuoc is predicted to turn out to be a contemporary industrial province by 2050, which implies the federal government will prioritize industrial enlargement. That is prone to push demand for industrial actual property, aided by authorities incentives.
Secondly, land prepared for funding and growth in Binh Phuoc is considerable with round 60,000 km2 of space floor. If in comparison with the Northern provinces the place one plot of land normally belongs to a number of homeowners, a plot of land in Binh Phuoc is usually owned by a single proprietor and thus simpler to purchase. The land can also be flat and due to this fact simpler for development.
Final however not least, recruiting for labor is simpler in Binh Phuoc, because the province is adjoining to Vietnam’s main inhabitants hubs together with Dong Nai and Binh Duong provinces, in addition to Ho Chi Minh Metropolis.
Alternatives in Binh Phuoc: 3 areas in your funding
Dong Phu District – A possible spot for industrial development
Binh Phuoc’s Dong Phu district has a pure space floor of over 93,445 hectares, equal to 13.63 p.c of the entire space of Binh Phuoc and 0.28 p.c of the entire space of Vietnam. Dong Phu has an essential geographical location with entry to Nationwide Freeway 14 and freeway DT741.
The district connects Tay Nguyen province with Ho Chi Minh Metropolis in addition to permits Dong Phu, together with Chon Thanh district and Dong Xoai Metropolis to turn out to be a number one industrial, service, and business triangle of the province.
Dong Phu has two industrial parks and 4 industrial clusters. Making the most of its pure panorama with a 420-hectare freshwater lake, the district additionally has plans to prioritize ecotourism growth.
Dong Xoai Metropolis – The important thing engine for Binh Phuoc’s actual property development
Binh Phuoc’s provincial capital Dong Xoai metropolis is situated on the intersection of Nationwide Freeway 14 and freeway DT741, 101km from Ho Chi Minh Metropolis. Dong Xoai has a complete space of 16,771 hectares with a inhabitants of 120,000, making it a big metropolis ripe for funding and growth.
Dong Xoai additionally connects Tay Nguyen with the Mekong Delta provinces. Sooner or later, there shall be a direct railway linking Dak Nong province via Dong Xoai metropolis to Ba Ria – Vung Tau’s Thi Vai port. These connections and transportation accessibility would facilitate Dong Xoai commerce with different components of the nation making it engaging for traders.
There are 4 industrial zones in Dong Xoai, all with a land dimension of over 500 hectares attracting manufacturing companies. This has additionally created a knock-on impact with flows of migrant employees ensuing within the demand for housing and infrastructure. In reality, lots of Vietnam’s actual property giants have joined the market together with Vingroup, Becamex IDC, FLC, and Dai Nam Company.
Phuoc Lengthy city – a promising outlook for tourism
Much like Dong Phu District and Dong Xoai Metropolis, Phuoc Lengthy city holds a big geographical location. Phuoc Lengthy is situated on two highways: DT741 connecting Dong Xoai Metropolis with Bu Gia Map district, and DT759 linking Nationwide Freeway 14 with Binh Duong and Dak Nong provinces, and Cambodia.
Significantly, the province is now prioritizing turning Phuoc Lengthy city into a brand new tourism hub of the province, particularly ecotourism as a result of Thac Mo lake and the Ba Ra mountain as they’re vacationer points of interest.
Industrial park highlight – Viet Kieu IP
Together with different a number of industrial parks, the Viet Kieu industrial park (IP) has emerged as a aggressive IP in Binh Phuoc with its accessibility and product range.
The Viet Kieu IP, developed by Minh Khang Funding and Growth JSC, presents a variety of companies together with 103 hectares of land prepared to be used, overlaying as much as eight industries from electronics to meals processing. That additionally means the traders have full autonomy to go for any lot dimension and renting mannequin they favor.
The Viet Kieu IP caters to all of the assist wanted all through the funding course of starting from authorized, development, and recruitment companies to the each day utilities together with a business middle with a complete space of 12.800 m2. The commercial park can also be technology-driven, and green-oriented.
Companies on the Viet Kieu IP are supplied with two years of tax exemption, 50 p.c tax discount for the following 4 years in addition to different incentives together with preferential import tax and favorable funding process.
Moreover, with good infrastructure connectivity with Ho Chi Minh Metropolis, Nationwide Freeway 13, Hoa Lu border in Binh Duong, and Cat Lai Port, the IP has a big benefit in location and attraction to traders.
Vietnam Briefing is produced by Dezan Shira & Associates. The agency assists overseas traders all through Asia from workplaces internationally, together with in Hanoi, Ho Chi Minh Metropolis, and Da Nang. Readers might write to firstname.lastname@example.org for extra assist on doing enterprise in Vietnam.
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