An industrial park (IP) specializing in mechanical support will be built in Vietnam’s southern Binh Duong Province by a leading domestic investor to facilitate local enterprises and international cooperation, local authorities reported.

Such an IP will cost around VND26 trillion (US$1.04 billion) under a memorandum of understanding (MoU) signed between the Binh Duong administration and Dong Nai Province-based Truong Hai Group Corporation (THACO), the provincial government told Tuoi Tre (Youth) newspaper on Sunday.

Under the MoU, THACO will proceed from early next year with the research and building of the project and the provincial People’s Committee will provide the group with all necessary support in terms of investment procedures.

Binh Duong authorities have introduced to THACO a number of potential locations to build a mechanical support industrial park and the group has been surveying them before coming to an official decision on the site of construction.

Binh Duong now has 29 industrial parks operational and five others being planned, said Vo Van Minh, chairman of the Binh Duong administration.

All these parks have high occupancy rates, making the province among the localities attracting the highest foreign direct investment (FDI) in the country.

However, despite overall strong growth after nearly 30 years of industrial development, many local enterprises are still mainly in labor-intensive industries with low added value, Minh said.

The province’s government therefore plans to attract more high-tech investment to accelerate the development of the Binh Duong Smart City Project, which was launched in 2016 to gradually shift the local economy to high-tech services and build a green, smart, and modern Binh Duong City.

In order to meet the goals, local authorities said they have taken many solutions in which the formation of a mechanical support IP is of great significance, as it helps the domestic business community develop stronger and more competitive, thereby participating more deeply in the global production chain.

Do Minh Tam, general director of the group’s THACO Industries, said that Binh Duong and the southern key economic region in general have many strengths to build supporting industrial parks. 

These advantages include a large and strong business community, appropriate technical infrastructure, abundant land funds, and effective support from local authorities, Tam elaborated.  

The future supporting IP will not only be focused on the automotive industry, THACO’s main business line, it will also cover many other industries, the general director said.  

He emphasized that the park will open up doors to all partners, especially small- and medium-sized enterprises, on the basis of mutual support for the common development of Binh Duong’s business communities. 

According to data from the Ministry of Planning and Investment, Binh Duong is always in the top of localities leading the country in terms of FDI attraction.

The province is home to 4,079 FDI projects in operation with a total registered capital of nearly $40 billion.

Since the beginning of this year, Binh Duong has attracted more than $2.8 billion in FDI from 64 new projects and 20 existing ones that have made investment increases.

Recently, a number of large projects have been kicked off in the province, including the Vietnam - Singapore IP III with a total cost of around VND6.4 trillion ($257.3 million), and a $1 billion factory of Danish toy manufacturer LEGO Group, among others.

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