The allure of Binh Dinh

Anticipating new development trends, many domestic and foreign businesses are flocking to Binh Dinh, investing in a series of large-scale projects.

Binh Dinh province organized an investment promotion delegation to South Korea in 2023. (Source: VNA)

Binh Dinh is a coastal province in the South Central region of Vietnam, located within the Central Vietnam key economic zone. The province's territory stretches 110 km from North to South. It holds a strategically important economic position, situated at the midpoint of the North-South railway and road transport axis.

As the closest and most convenient gateway to the sea for the Central Highlands, Southern Laos, Northeastern Cambodia, and Thailand via National Highway 19 and Quy Nhon seaport, Binh Dinh has many opportunities for trade and international integration.

Binh Dinh has been and continues to be a preferred destination for investors. Firstly, Binh Dinh has a particularly important geoeconomic position in regional and international exchange, situated at the midpoint of the North-South railway and road transport axis.

As the closest and most convenient gateway to the sea for the Central Highlands, Southern Laos, Northeastern Cambodia, and Thailand via National Highway 19 and the Quy Nhon international seaport, Binh Dinh is very close to the Central Highlands provinces, 300km from the Bo Y international border gate in Kon Tum province (towards Laos), 280km from the Le Thanh border gate in Gia Lai province (towards Cambodia), and stretches along 134km of coastline.

Besides this advantage, Binh Dinh also possesses abundant natural and human resources, as well as a relatively large workforce. In the overall socio-economic development plan for Binh Dinh province until 2020, approved by the Prime Minister (Decision No. 54/2009/QD-TTg dated April 14, 2009), Binh Dinh is identified as a province with a modern industrial base and one of the centers for socio-economic development, making a positive contribution to the development of the Central Vietnam key economic region and the whole country.

Secondly, Binh Dinh has favorable transportation infrastructure. This includes National Highway 1A, the ongoing construction of the North-South expressway passing through Binh Dinh province, and an expressway connecting Binh Dinh with the Central Highlands provinces; the Trans-Vietnam railway; an airport near the city and industrial zones, currently being upgraded to an international airport; and a seaport located within the city, undergoing upgrades and expansion to accommodate ships with a tonnage exceeding 70,000 DTW.

In particular, Binh Dinh has Quy Nhon seaport – one of the 10 largest seaports in the country, with a sheltered anchorage area, piers, and facilities to safely accommodate ships with a tonnage of 30,000 tons. With such a transportation system, Binh Dinh is easily connected and trades with the Central Highlands provinces, Northeast Cambodia, Southern Laos, and Thailand.

With its long and beautiful coastline and well-invested transportation infrastructure connecting to the sea, Binh Dinh has created a strong attraction for major investors, especially real estate and resort tourism businesses.

Thirdly, the open and liberal policies of the local government are one of the important reasons for attracting investment. The government is actively attracting foreign investors, so it will provide the best support in terms of administrative procedures. Investors in the province will benefit from the highest investment incentives of the Vietnamese Government (corporate income tax rates, corporate income tax exemptions and reductions, import tax on assets, land lease fee exemptions and reductions).

In addition, there are several supplementary incentives from the province. Specifically, support for labor training, trade promotion, assistance with electricity and water supply, and investment procedure processing. Once a location is selected within an industrial park or cluster, it takes no more than one week to obtain an investment license and no more than 120 days to begin construction.

In addition, creating a transparent and high-quality investment environment remains one of the key solutions that Binh Dinh will focus on in the coming year. Businesses and investors coming to Binh Dinh will be provided with every convenience to successfully implement their projects and achieve sustainable development.

Fourth, economic zones, industrial parks, and industrial clusters have complete infrastructure to meet the investment needs of businesses, and infrastructure rental costs are low. Infrastructure rental prices in economic zones, industrial parks, and industrial clusters range from approximately 25 USD to 60 USD/m2/50 years, which is cheaper than some other industrial parks nationwide. There are many industrial parks and clusters throughout the province, making it easy for businesses to choose.

Binh Dinh has leveraged and maximized the province's potential in many aspects such as infrastructure, policies, natural resources, and human resources to attract and support investors.

Panoramic view of Quy Nhon city. (Source: VNA)

Fifth, Binh Dinh is a developing province, attracting skilled labor migrating from major cities and industrial zones. The province has three universities, numerous colleges, and vocational schools; it can supply 10,000 local workers annually; and there is a growing trend of local workers returning to the province from working far away. Currently, Binh Dinh's biggest advantage is its young, abundant, and stable workforce. Labor productivity has significantly improved over the years, showing a steady increase, and it boasts a high labor productivity growth rate among the Northern and Central Coastal provinces.

Furthermore, Binh Dinh is developing rapidly, and its investment environment is highly competitive. At the same time, the local government consistently "rolls out the red carpet," regularly organizing activities to promote and attract domestic and foreign investment, contributing to maintaining high economic growth. It can be said that Binh Dinh is a province open to businesses in all sectors.

Sixth, there are still few FDI enterprises, so competition for labor is low. There is a large local labor supply. Recruiting workers is not too difficult, and the workforce is stable; workers do not switch jobs between factories, minimizing training costs. Binh Dinh's population is 1.6 million, of which over 60% are of working age. The labor force is relatively abundant with a young population, and labor productivity is improving year after year.

Seventh, labor costs are low compared to many other localities. The minimum wage ranges from 135 USD to 152 USD per person per month; lower than Da Nang, Hanoi, Ho Chi Minh City, Binh Duong, and Dong Nai: 173 USD to 195 USD per person per month.

Eighth, there is a huge potential workforce in the locality. This includes a large number of graduates annually from high schools, colleges, and universities in Binh Dinh with good English skills and the ability to learn and adapt to advanced and modern technologies much faster than in some other countries (as assessed by foreign investors).

In addition, green transformation and digital transformation will create a strong shift in restructuring the economy and improving the investment and business environment, enhancing local competitiveness. Training and improving the quality of human resources in line with the province's development orientation, especially human resources in information technology, engineering technology, tourism, high-tech industry, and high-tech agriculture.

Ninth, a clean living environment and stable political security. As a province stretching along the coast, it boasts a very clean living environment with minimal pollution. The stable social security and order provide reassurance to investors when investing in Binh Dinh. Healthcare, education, entertainment, shopping, and banking services meet international standards. Furthermore, Binh Dinh has become a safe and friendly tourist destination, attracting the attention of many domestic and international visitors.

Tenth, Binh Dinh is the center of the raw material region. The province is adjacent to Quang Ngai, Phu Yen, and the vast Central Highlands region, so most raw material sources are close enough to locate factories here.

The unified policies, synchronized solutions, and the consensus and determination of the entire province create expectations that in the coming years, Binh Dinh's investment promotion and attraction activities will continue to achieve important results, playing a key role as a breakthrough to create momentum for socio-economic development.

Source: https://baoquocte.vn/suc-hut-tu-binh-dinh-250846.html