Over one billion USD poured into Vietnam’s southern industrial hub in six months
The southern industrial hub of Binh Duong saw 3,428 newly-established companies with total capital of nearly 24.64 trillion VND (1.07 billion USD) in the first half of 2021, a year-on-year rise of 13.6 percent and 36.7 percent, respectively.
So far, Binh Duong has hosted 52,117 operating enterprises with total capital of nearly 495.8 trillion VND (21.5 billion USD).
Binh Duong sees over 3,400 new firms in six months, according to the provincial Department of Planning and Investment, this is a good sign in the locality’s economic situation amid the impacts of COVID-19 pandemic.
In the first six months of 2021, the average capital of a new firm rose 20.33 percent year on year to 7.18 billion VND, reported the Vietnam News.
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So far, the locality has hosted 52,117 operating enterprises with total capital of nearly 495.8 trillion VND (21.5 billion USD).
In the first half of this year, the highest year-on-year rise in investment was seen in information and communications sector at 325 percent, followed by art and entertainment at 283 percent, and water supply and waste treatment at 154 percent.
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Mai Ba Tuoc, Director of the department, said that in order to support new firms during registration process, the locality has strengthened the application of IT and allowed companies to register online.
In the future, the department will continue to apply mechanisms and policies to support local firms to lure more businesses, thus promoting production and controlling COVID-19 at the same time, according to Vietnam News Agency.
For several years, Vietnam has been a destination for foreign investors looking for an alternative destination to China.
Long before the US-China trade war broke out, Vietnam was successful in promoting itself as a new destination for manufacturing activities for export. For example, global apparel manufacturers such as Nike and Adidas moved their production bases to Vietnam in 2009 and 2012, respectively, followed by tech corporations such as Intel, Samsung, Panasonic, Nokia, Microsoft and LG and others in the following years.
The trade war between Washington and Beijing, along with rising labor costs in China, makes Vietnam more attractive to potential investors.
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