Binh Duong is the pioneer locality in coordinating with the Institute of Policy Management to conduct a comprehensive survey of foreign-invested enterprises (FDI) to develop a strategy to attract FDI in the context of global minimum tax rates.
The 2023 Investment Promotion Conference is expected to be held by Binh Duong province in early July 2023. (Source: Department of Planning and Investment of Binh Duong province)
The global minimum tax policy is required to be applied from January 1, 2024. The global minimum corporate tax rate of 15% is tending to disrupt investment location strategies. The way multinational companies operate and Vietnam's FDI attraction strategy also need to change when the global minimum tax rate is applied. The global minimum tax rate not only affects affected businesses but also poses new requirements for the business community in general and requires investment attraction policies to adapt quickly, promptly, and proactively develop new strategic policies in the context of the global minimum tax rate. In the first 5 months of 2023, according to the Foreign Investment Agency, Ministry of Planning and Investment, 82 countries and territories invested in Vietnam, led by Singapore with more than 2.53 billion USD, accounting for more than 23.3% of total investment capital, down 14.3% over the same period last year. In terms of the number of projects, Korea leads in both the number of new projects (accounting for 17.4%), the number of capital adjustments (accounting for 25.2%) and capital contributions to buy shares (accounting for 28.5%). Foreign investors have invested in 50 provinces and cities across the country. The growth rate of the number of new projects is greater than the growth rate of total investment capital, which shows that small and medium-sized foreign investors continue to be interested in and confident in Vietnam's investment environment and have made new investment decisions. Projects with investment capital of less than 1 million USD account for nearly 70% of new projects, but the total investment capital only accounts for nearly 2.2% of the total newly registered investment capital in 5 months. New investment projects are still focused on provinces and cities with many advantages in attracting foreign investment (favorable location, good infrastructure, stable human resources, efforts to reform administrative procedures and dynamism in investment promotion...) such as Hanoi, Ho Chi Minh City, Binh Duong, Dong Nai, Bac Ninh, Hai Phong, Bac Giang ... The Institute for Policy Management and Development Strategy, the unit promoting the policy on global minimum tax rates, is developing phase 3 of the research, coordinating with local provinces and cities to study and evaluate the impact of global minimum tax rates on attracting foreign investment. Binh Duong province is a pioneer in conducting a comprehensive survey of foreign direct investment (FDI) enterprises in the area to develop a strategy to attract FDI in the context of global minimum tax rates. Business support activities in the province are implemented by the Binh Duong Investment Promotion and Enterprise Support Center, a specialized focal point for supporting enterprises, attracting investment, increasing FDI attraction, etc., and at the same time advising and supporting the development of state management policies on enterprises in Binh Duong.The 2023 Investment Promotion Conference is expected to be held by Binh Duong province in early July 2023, aiming to create practical effects and develop connections for the business community to participate in the expert - entrepreneur - media ecosystem in the Vietnam Development Strategy to share information, increase policy comments, and link databases to create the most favorable environment for businesses.
Over the years, Binh Duong has always been among the leading localities in attracting FDI capital. The province has attracted many FDI enterprises, large global corporations and large Vietnamese corporations to invest in the province.
As of May 31, 2023, the total newly registered, adjusted and contributed foreign investment capital for share purchase in the whole province reached 914.5 million USD, reaching 50.8% of the target set for 2023. Of which, 382.4 million USD was attracted in industrial parks, and 532.1 million USD was attracted outside industrial parks.
From the beginning of the year to May 31, 2023, the processing and manufacturing industry attracted 24 newly registered investment projects, 10 capital adjustment projects and 42 projects registered to contribute capital and purchase shares with a total investment capital of 410 million USD, accounting for 44.88% of the total registered capital.
The real estate business sector attracted 01 new investment project, 05 registrations for capital contribution and share purchase with a total registered capital of about 468.9 million USD, accounting for 51.33% of the total registered investment capital. Next are the construction sectors accounting for 3.21%; wholesale and retail accounting for 1.1%...
As of May 31, 2023, the province has 4,109 registered foreign investment projects with a total registered investment capital of 40 billion USD. Of the 64 countries and territories with FDI capital in Binh Duong, Taiwan (China) has 869 projects with a total registered capital of 6 billion 285 million USD; Japan has 344 projects with a total registered capital of 5 billion 898 million USD; Singapore has 280 projects with a total registered capital of 5 billion 535 million USD, Samoa has 140 projects with a total registered capital of 3 billion 429 million USD, South Korea has 763 projects with a total registered capital of 3 billion 304 million USD.
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