Becamex Binh Duong: A breakthrough for Nghe An

(Baonghean) - Becamex IDC Binh Duong, a limited liability company specializing in industrial park, residential area, urban development, transportation infrastructure, and other fields, comprises 28 member companies. Following a working visit by provincial leaders to Binh Duong province, Becamex IDC surveyed and invested in Nghe An province in the project "Construction of Industrial Park, Urban and Service Infrastructure in Nghe An," with a total investment of approximately 4,955 billion VND. This project is receiving special attention and promises a breakthrough, contributing to Nghe An's sustainable industrialization...

Up until the days leading up to the Lunar New Year of the Year of the Horse (2014), the leaders of Nghe An province, relevant departments of the Provincial People's Committee, the Department of Science and Technology of Nghe An, and Becamex IDC Corporation along with VSIP (Vietnam-Singapore Industrial Park Joint Venture) were still continuing negotiations and conducting field surveys to finalize calculations, plans, and commitments for a large project called "Construction of infrastructure for a 1000-hectare Nghe An urban service industrial park" in Hung Nguyen and the communes of Nghi Cong Nam, Nghi Van - Nghi Loc, with a total investment of nearly 5,000 billion VND. Comrade Huynh Thanh Dien - Vice Chairman of the Provincial People's Committee, said: "It wasn't until the 28th day of the Lunar New Year that the final commitments between the two sides were finalized. Recognizing this as a major partner with significant importance for Nghe An in attracting investment, the provincial leaders had to set aside many other tasks to work with them, conduct surveys, select locations, and discuss with the partner. Personally, besides the trip I took with the Provincial Party Secretary and the Chairman of the Provincial People's Committee to Binh Duong, I have visited Binh Duong four more times. To date, we can say that we have achieved initial success. The investor has presented an investment plan and requirements to the province."

Becamex IDC Binh Duong, established in 1976, has grown significantly since then, merging with, investing in, and operating in various sectors such as securities, finance, insurance, banking, construction, real estate, telecommunications, information technology, mining, pharmaceuticals, healthcare, and education. The parent company has a charter capital of VND 8,500 billion, total assets exceeding VND 100,000 billion, and a total workforce of 3,922 employees.

Currently, Becamex IDC and its member companies are investing in and managing 8 industrial parks in Binh Duong province and other provinces with a total area of ​​approximately 20,000 hectares, including: My Phuoc Industrial and Urban Area, Bau Bang Industrial and Urban Area, Thoi Hoa Industrial and Urban Area, and Vietnam-Singapore Industrial Park (VSIP). In other provinces, there is Binh Phuoc Industrial Park (4,500 hectares), VSIP Bac Ninh Industrial Park (700 hectares), VSIP Hai Phong Industrial Park (1,600 hectares), and VSIP Quang Ngai Industrial Park (6,000 hectares). The industrial parks invested in or jointly developed by Becamex IDC are model parks with complete infrastructure, built with a focus on environmental protection, creating green and clean industrial parks following the model of modern industrial cities and urban areas, aiming for long-term and sustainable development. To date, Becamex IDC Binh Duong's industrial parks have attracted over 750 investment projects from 24 countries and territories with an estimated total capital of nearly US$6.3 billion, contributing to job creation for nearly 150,000 workers. Countries and territories with high investment rates include South Korea, Japan, Taiwan, and China, focusing on sectors such as: electrical and electronics industries, mechanical engineering, food processing, wood and interior decoration industries, garment manufacturing, and supporting industries.

Following the provincial leaders' working visit to Binh Duong, the Provincial People's Committee held several meetings with the leaders of Becamex Binh Duong Company. Becamex Binh Duong Company also organized delegations to conduct on-site surveys and investigate related issues; the Provincial People's Committee directed relevant departments and agencies to provide documents and information, and established working groups to coordinate with Becamex Binh Duong's working groups in conducting field surveys and jointly calculating and developing investment plans. In December 2013, the Singapore Embassy also visited and worked with the provincial leaders. Through these discussions, the Embassy also supported Becamex Binh Duong Company and the Vietnam-Singapore Industrial Park Joint Venture Company Limited (VSIP) in researching investment projects in Nghe An.

Mr. Nguyen Van Truong - Deputy Head of the Investment and Construction Department of the Provincial People's Committee - one of the people directly working with the partner, said: "After surveying many locations, Becamex Binh Duong Company is currently proposing an investment location at: adjacent to both sides of National Highway 1 (Vinh bypass section) and National Highway 46 (old and new), in the communes of Hung Tay, Hung Chinh, Hung Yen Nam, Hung Yen Bac, Hung Nguyen district and Nghi Cong, Nghi Van communes, Nghi Loc district (bordering the Southeast Economic Zone). The investment area is approximately 1,000 hectares, of which phase 1 is 700 hectares (in the area east of the Vinh bypass, mainly in Hung Tay commune and part of Hung Nguyen town and Hung Chinh commune), phase 2 is 300 hectares (in the area west of the Vinh bypass, in the communes of Nghi Cong, Nghi Van, Nghi Loc district)." Currently, this area is mostly agricultural land; Approximately 80% of the land is rice paddy (low yield), with the remainder being arable land and transportation land; the area has about 490 households with 1,708 inhabitants, and the buildings are mostly single-story houses, with only about 15 houses being two to three stories high (the residents are located in the middle of the area planned for an industrial park, so Becamex Binh Duong Company requires their relocation and clearance).

Becamex Binh Duong Corporation conducts a field survey in the Southeast Economic Zone. Photo: Nguyen Son

After calculations, the investor's (preliminary) investment plan and requirements for the province are: The project location must be included in the Southeast Economic Zone planning. Becamex Binh Duong Corporation proposes that the province be responsible for carrying out the procedures to submit to the Prime Minister for approval to include the project in the Southeast Economic Zone planning so that the industrial park infrastructure construction project and factories within the industrial park can benefit from the economic zone's preferential policies (similar to the Dung Quat Economic Zone, where Quang Ngai province is responsible for submitting the economic zone planning adjustment to the Prime Minister).

Regarding land compensation: According to Decision No. 02/2010/QD-UBND dated January 7, 2010, issued by the People's Committee of Nghe An province, which promulgates several investment incentive policies in the Southeast Economic Zone, the province will allocate cleared land to investors or encourage investors to invest capital in land clearance, and the province will reimburse the land compensation costs to the investor within 5 years after the completion of land clearance. After negotiations and discussions, Becamex Binh Duong Company proposed that Nghe An province be responsible for land compensation; the province will contribute 30% of the total cost (approximately 713 billion VND), and the investor will advance 70% of the total cost (approximately 1,663 billion VND), which the province will have to reimburse within 5 years from the completion of land clearance (the province will not have to pay interest on this amount).

Land clearance is a challenging task in attracting investment. Therefore, Becamex Binh Duong hopes that the province will complete the compensation work for phase 1 (700 hectares) within two years, equivalent to an expenditure of approximately 500 billion VND (about 250 billion VND per year) to hand over the land to the investor for the development of integrated technical infrastructure. The investor will cooperate in the land clearance process. According to the leaders of Nghe An province, Nghe An will meet all of the investor's requirements as soon as possible.

Regarding infrastructure development and investment attraction: The investor is responsible for providing capital to fully and comprehensively develop the industrial park's technical infrastructure, with a total estimated investment of VND 4,955 billion; attracting investors to the industrial park will be undertaken by Becamex Binh Duong Company.

Speaking with a reporter from Nghe An Newspaper, Comrade Huynh Thanh Dien commented: “The project to invest in the construction of industrial park infrastructure (following the VSIP model) in Hung Nguyen, proposed by Becamex Binh Duong Company, is a project that is of particular interest to attract investment (not only for Nghe An province but also for many other provinces that are actively seeking investment). The investor is a large corporation that has invested in many important infrastructure projects in many localities, including many similar projects in other localities (Binh Duong, Quang Ngai, Hai Phong, Bac Ninh) that are operating effectively, contributing a large amount of budget revenue, promoting sustainable development, and creating breakthroughs in socio-economic development; the projects invested in the industrial park are clean, high-tech industrial projects that ensure environmental protection and landscape preservation.”

Regarding the project location proposed by the investor, it has several advantages, including proximity to Vinh City and the planned North-South railway and expressway. The location is adjacent to and close to important transportation routes (National Highway 1 bypassing Vinh, National Highway 46 leading to Thanh Thuy Border Gate and Cua Lo Port, with the Vinh - Cua Lo Boulevard passing through (72m wide, under construction with WB funding), near Vinh Airport; land clearance is easy (mainly agricultural land, few houses and structures, mostly within one district); the embankment height is moderate (average 1.2m); input materials for infrastructure construction are readily available (near quarries, fill soil)... A particularly attractive feature of this large investor is that after working with the investor, alongside the infrastructure construction process, the investor will attract investment projects to the industrial park, and simultaneously develop services (international school, international hospital, integrated data center...). This is "killing many birds with one stone" in attracting investment.

According to preliminary calculations in the plan proposed by Becamex Binh Duong Company, for land clearance costs in the 2014-2015 period, the province must contribute 30% (approximately 500 billion VND) and the investor must contribute 70% (approximately 1,200 billion VND) to complete land clearance for phase 1 (700 hectares). After the land is handed over and the investor completes the construction of the integrated infrastructure, the province must reimburse the investor (without interest) 70% of the land clearance costs incurred by the investor within 5 years (expected to start from 2016), approximately 332 billion VND per year. In addition, the province must also provide financial support for land leveling to investors according to Decision No. 02/2010/QD-UBND dated January 7, 2010, of the Provincial People's Committee promulgating a number of investment incentive policies in the Southeast Economic Zone (expected in 2016 and 2017), approximately 75 billion VND each year.

Mentioning Becamex IDC also means mentioning the Vietnam-Singapore Industrial Park (VSIP), formed on the foundation of friendship and cooperation between Vietnam and Singapore. It is a joint venture between Becamex Binh Duong Investment and Development Corporation and companies of Sembcorp Development Group (Singapore), aiming to implement VSIP projects. Becamex IDC and VSIP are the two companies that came to Nghe An to jointly carry out the project. When investing, these entities will provide investors with the support facilities of a fully developed and convenient industrial park, such as: banks, police stations, post offices, customs, warehousing, logistics, sports facilities, restaurants, food courts, logistics centers, medical centers, commercial centers, residential areas, etc.

With its professionalism, high potential, and decades of experience, Becamex IDC Binh Duong, after investing in the industrial park's infrastructure, will naturally attract foreign investment projects, creating "industrial cities," as seen in industrial parks in Binh Duong and Quang Ngai. Following investments by Becamex IDC and VSIP, most provinces such as Binh Duong, Quang Ngai, and Bac Ninh have experienced a leap forward in development, attracting many foreign investment projects in manufacturing and business. This shows that if Becamex IDC invests, Nghe An will experience a leap forward in attracting investment and easily become an industrial province by 2020.

At the upcoming investor meeting, the investor and the People's Committee of Nghe An province will sign an investment cooperation agreement, followed by a detailed agreement with terms and conditions as requested by both parties...

Chau Lan