Located in the southeast region of Vietnam, Binh Duong is an important investment destination in the Southern Key Economic Zone. In recent years, the province has experienced significant growth in its manufacturing sector. Due to the large number of major roads that run through the province, Binh Duong serves as an important transition point located between Ho Chi Minh City (HCMC) and other regions, such as the Truong Son mountain chain and provinces in the Mekong Delta.
Binh Duong’s economy continues to see strong economic growth, the province’s GDP increased by 13 percent in 2014, and the region attracted US$1.53 billion in foreign direct investment (FDI) – the third highest level of FDI in the country.
In addition to its geographic advantages and economic potential, Binh Duong is steadily improving its labor productivity, infrastructure, and is rapidly urbanizing – achieving Vietnam’s 2nd highest urbanization rate in 2014 (71.6 percent), just behind HCMC (83 percent). Binh Duong is well on its way to achieving long-term sustainable growth.
Binh Duong is located in the southern part of the country, just north of HCMC. The province has a population of around 1,748,001 people, living in an area of 1040.3 square miles (or 2,695 sq. km).
Its flat terrain has made Binh Duong a favorable destination for mass infrastructure and industry. The province’s terrain is suitable for both long-term and short-term cropping; key crops include fruit trees and vegetables. However, the region does face some irrigation difficulties during the dry season.
Binh Duong has a tropical climate which comes with an accompanying high level of humidity and temperature almost year-round. There are essentially just two seasons, raining (May to October) and dry.
There are numerous rivers in the region, the three largest are the Dong Nai, Sai Gon, and Be. The Dong Nai River supplies water for industry, urban areas, and tourism activities. The Sai Gon River is used primarily for transport, agriculture, and fisheries, as well as tourism.
Agriculture, forestry and fishing:
While primarily dedicated to urbanization and industrialization, Binh Duong has a small, but productive, agricultural sector, which accounts for four percent of the regional economy. In 2014, Binh Duong’s agriculture, forestry and fishing sector accounted for VND14,272 billion (US$6,685,000).
The region has a total of 372 hectares using automatic irrigation systems and a total of 126 farms taking advantage of modern technology.
A key tourism sector for Binh Duong is eco-tourism. A popular location for visitors is the Lai Thieu orchards. Additionally, river tours are very popular due to the attractive landscape alongside the waterways.
Tourists are also drawn to towns producing the characteristic traditional handicrafts made in the region. Tuong Binh Hiep is famous for its lacquer painting; Tan Phuoc Khanh and Minh Long are well-known for their porcelain.
During the 2015-2020 period, as a part of its tourism strategic master plan, the province plans to invest US$253 million into a variety of projects, including resorts, eco-tourism areas, and historical areas. During 2015, the government of Binh Duong has set the target of attracting five million local and foreign tourists, for 2020 the target is 6.8 million tourists, and nine million tourists in 2025.
Binh Duong is working hard to grow a number of key industries, including building materials, clothing, food processing and subsidiary industries that are providing product components such as wheels, fasteners, buttons, etc. In 2014, industrial output increased by 8.9 percent, compared to 2013.
Industrial parks (IP) have played an important role in helping to grow the region’s economy. Binh Duong currently has 29 IPs with a total area of 36.390 mi2.
According to the Binh Duong Department of Planning and Investment, as of October 2014, there were 2,317 FDI projects in the region, with a value of nearly US$20 billion in FDI.
|Area||1040.3 sq miles|
|GDP (per capita)||US$2,475 (2013)|
|Principal Languages||Vietnamese, English|
The Southern Power Corporation (SPC), a subsidiary of Vietnam Electricity (EVN), is the main power supplier in the region. It provided Binh Duong a total of 8.13 billion kWh in 2014, a 12 percent increasecompared to 2013. Binh Duong SPC has invested VND580 billion (US$27.17million) in power infrastructure improvements, including the building of new electrical substations.
Thanks to a number of recent Build-Transfer and Build-Operate-Transfer projects, the total length of Binh Duong’s roads in 2014 was extended to 7,244km, including 77.1km of boulevards. My Phuoc-Tan Van expressway has attracted an investment of VND3,500 billion (US$164 million) for infrastructure upgrades, which are now 90 percent complete. This road will serve as the key connection between Tay Nguyen (located in the Central Highlands) and the southeast regions of the country, thus allowing easier access to locations such as international airports and the Thi Vai–Vung Tau seaport.
The southeast region of Vietnam is served by the Tan Son Nhat International Airport, located in Tan Binh District, HCMC. It is the most active airport in Vietnam and handles over half of the country’s air traffic.
Song Than railway station is the key station in Binh Duong province. It is on the North–South Railway (Reunification Express) line. The station serves as an important economic connection in the region.
Binh Duong seaport is the main port in the region; it is capable of handling all kinds of vessels/barges under 5000 Tons DWT. It has a total area of 45,000 m2 and a capacity of 3000 TEUs. In addition to the Binh Duong seaport, the region has the three river ports of Ba Lua, Binh Duong, and Thanh Phuoc.
In late 1996, Binh Duong province, along with Binh Phuoc province, had 2,186 kilometers of roads, with asphalt roads accounting for 25 percent of the total. Recently, thanks to build-operate-transfer projects and development aid for infrastructure projects, Binh Duong now has a total of 5,350 kilometers of roads.
The system of roads and waterways of Binh Duong are very important in connecting regions inside and outside the province. The region’s road system centers on National Highway 13, which runs from HCMC through Binh Duong, across Binh Phuoc province, and connecting Cambodia to Laos.
Additional important roads in the province include, National Highway 1A connecting Thu Dau Mot town to Phuoc Long district (Binh Phuoc province); National Highway 16 connecting Tan Uyen townto Phuoc Vinh; National Highway 14 connecting Ben Cat district to Dau Tieng district; National Highway 1K connecting HCMC with Di An district (Binh Duong); and National Highway 52 (or Hanoi Highway) also connecting HCMC with Di An district.
Binh Duong is well-known for doing its utmost to attract investment. The province’s main business sectors include:
- Industrial sector – worth US$3.58 billion
- Import-export sector - 2014 saw a year on year increase of US$5.8 billion in imports and US$9.841 billion in exports
- Hi-tech industries,with a focus on high added-value products such as electronics, pharmaceuticals, and precision tools
- Service sectors such as banking, healthcare, and education
- Tourism (including eco-tourism)
Key foreign-invested sectors include electronic appliances, timber products, leather and footwear, garments, and textiles
The local authorities pay close attention to creating an attractive investment environment for technology companies, industrial companies, and for those businesses operating in development areas. As a result of the province’s shift from a focus on agriculture to industrial manufacturing, Binh Duong has been able to attract a range of investments. Additionally, the province provides a number of financial incentives aimed at attracting further investment. For example, if a company sets up their operations in VSIP’s Bac Ninh industrial park in Binh Duong, they will receive a two year corporate income tax (CIT) holiday and a 50 percent CIT reduction for a subsequent four years.
Binh Duong attracted an estimated US$1.53 billion in FDI during the first 10 months of 2014, beating its annual target of US$1 billion. Investors into the region come from 33 countries, including Japan, Taiwan, Singapore, Korea, Hong Kong, and the U.S. The region's first industrial park (IP), the Vietnam - Singapore Industrial Park, began operations in 1996. Since then, Binh Duong has seen an impressive rise in the number of its IPs. It currently has 28 IPs and Economic Zones, totaling nearly 12,000 hectares. Approximately 6,552 domestic and foreign enterprises operate in these areas.
Binh Duong’s IPs employ 342,000 of the region’s citizens, with an average monthly labor cost of US$180. The number of IPs is expected to increase to 31 in 2014
Significant IPs include the Vietnam - Singapore Industrial Park (VSIP), Tan Binh Industrial Park, and Song Than Industrial Park.
Vietnam-Singapore Industrial Park (VSIP)
· VSIP I (founded in 1996) – Binh Duong:
Location: Số 8, Đại Lộ Hữu Nghị, Cao Ốc VSIP, Thị xã Thuận An,Tỉnh Bình Dương
Area: 500 ha
· VSIP II – Binh Duong:
Location: Đường Dân Chủ, Phường Hiệp An, Thủ Dầu Một, Bình Dương
Area stage 1(Founded in 2006): 345 ha
Area stage 2(Founded in 2008): 1,700 ha
Tan Binh IP
Address: Đường ĐT741, Xã Tân Bình, Đường tỉnh 741, Tân Bình, Tân Uyên, Bình Dương
Tel: 0650 6566 668
Song Than IP
· Song Than 1
Address: 63 Yersin, Phường Hiệp Thành, Thành phố Thủ Dầu Một, Tỉnh Bình Dương
Tel: (0650) 3 829 535
Fax: (0650) 3 824 112
· Song Than 2
Address: 1765 Đại lộ Bình Dương, Phường Hiệp An, Thành phố Thủ Dầu Một, Tỉnh Bình Dương
Tel: (0650) 3 845 845 – (0650) 3 845 878 – (0650) 3 829 605
Fax: (0650) 3 512 391 – (0650) 3 845 804 – (0650) 3 821 734
American Chamber of Commerce
New World Hotel Suite 323 76 Le Lai Street, District 1 Ho Chi Minh City, Vietnam
Tel: (84-8) 3824 3562
European Chamber of Commerce
15F, The Landmark, Room 2B, 5B Ton Duc Thang, District 1, HCMC
Tel: (84-8) 3827 2715
Fax: (84-8) 3827 2743
The Council of Taiwanese Chambers of Commerce in Vietnam
Song Than Industrial Area 2, 29 Thong Nhat Avenue, Di An Dist., Binh Duong
Tel: (84-650) 3737 599
Fax: (84-650) 3732640
230 Binh Duong Boulevard, Thu Dau Mot, Vietnam
Tel: (84-650) 222 1333 - (84-650) 222 1342
Green Eye Resort
Cay Chanh Hamlet, Xom Ba Da, Vietnam
Hoang Yen Hotel
11/16 Binh Duong Highway, East Quarter, Vinh Phu Ward, Thuan An, Vietnam
Tel: (84-650) 3786243
Fax: (84-650) 3786242
Long Bao Chau Hotel
9 street D10, Chanh Nghia, Thu Dau Mot, Vietnam
Tel: (84-650) 386 6161
Fax: (84-650) 386 6262
Saigon Park Resort
79/28 Halley 28 Binh Phuoc, Thuan An, Binh Duong, Vietnam
Tel: (84-650) 3710082
Fax: (84-650) 3710944
The Mira Hotel
555B Binh Duong Boulevard, Hiep Thanh Ward, Thu Dau Mot City, Binh Duong Province
Binh Duong News
Thanh Nien News
The Business Times
Tuoi Tre News
Vietnam Investment Review