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Viet Nam
Industrial Park Situation
Text by Saito Hiroshi
The 15th: Binh Duong Province - A Province Eager to Attract Foreign Direct Investment (FDI)
When entering Vietnam’s manufacturing sector, selecting the right industrial park in the region becomes a crucial decision. There are provinces diligently working to attract foreign direct investment (FDI) across the country, and I would like to highlight a few examples. This time, I will introduce the situation in Binh Duong Province in southeastern Vietnam.
1. Location/Area/Population :
Binh Duong Province is located just north of Ho Chi Minh City in southern Vietnam, forming a triangular shape between the Saigon River and the Dong Nai River. The provincial capital is Thu Dau Mot City. It covers an area of approximately 2,700 square kilometers with a population of around 2.45 million people. To the south, it borders Ho Chi Minh City, and to the east, it borders Dong Nai Province. Binh Duong Province is accessible from the center of Ho Chi Minh City by driving north on National Highway 13 for just under an hour.
2. Industrial parks in Binh Duong Province:
Currently, Binh Duong Province hosts 33 industrial parks, including My Phuoc Industrial Park and Vietnam-Singapore Industrial Park (VSIP). Alongside Dong Nai Province, it has become one of the two major manufacturing hubs in southern Vietnam.
3. Binh Duong Provincial Government Initiatives:
Binh Duong Province is actively engaged in attracting foreign companies and is one of the key provinces in the southern economic zone centered around Ho Chi Minh City. Many Japanese companies, particularly those in manufacturing, have invested in the province.
The government of Binh Duong Province has initiated a smart city project aimed at advancing the region’s economy in the 21st century within the global economic framework. Focusing on people and knowledge, the project aims to gather resources domestically and internationally to create new value.
This project has already made significant contributions to the socio-economic development of Binh Duong Province, enhancing its international relations, attracting investment partners, and elevating its position on the global stage.
This smart city project has attracted major Japanese companies such as Tokyu Corporation and NTT Group (NTT e-Asia), who are contributing significantly to the development of residential areas, transportation infrastructure, and telecommunications environment. Their involvement is crucial in establishing the foundational infrastructure for the smart city initiative in Binh Duong Province.
4. Japanese manufacturing companies operating in Binh Duong Province:
In Binh Duong Province, prominent Japanese manufacturing companies that have established operations include Kubota, King Jim (My Phuoc 3), Yakult, Yokohama Tire (VSIP 1), Kewpie, Plus (VSIP 2), and Generation Pass (Bau Bang). These leading enterprises represent various sectors and have made significant investments in the region.
5. Housing situation in Do Binh Duong Province:
In March 2012, Tokyu Corporation and Vietnam’s government-owned real estate development company, Becamex IDC, jointly established “Becamex Tokyu.” This entity focuses on constructing condominiums and detached houses targeting foreign residents and affluent Vietnamese, particularly catering to many Japanese expatriates commuting to industrial parks in Binh Duong Province. These expatriates often reside in serviced apartments managed by the company. Notably, “SORA Gardens I & II” in Binh Duong New City features Japanese convenience stores and restaurants on the ground floor of the buildings. Adjacent shopping centers include popular Japanese brands like Uniqlo and Nitori, making it highly favored among Japanese expatriates.
6. Restaurant situation in Binh Duong Province:
Currently, Binh Duong Province hosts dozens of Japanese restaurants, including popular establishments from Ho Chi Minh City such as “Wakahiro,” “Kyo,” and “Akatombo,” as well as chain restaurants like “Sukiya” and “Marugame Udon.” Additionally, there are authentic Japanese dining options suitable for entertaining, such as “Ju Go Ya Geihinkan,” known for its high-quality traditional Japanese cuisine, and the highly regarded soba specialty restaurant “Kan’ya Katsu.” This variety ensures a diverse and enjoyable experience of Japanese cuisine in the province.
Furthermore, Binh Duong Province boasts popular Western cuisine restaurants like “Pizza 4P’s,” which is owned by Japanese and widely popular across Vietnam. Additionally, there are restaurants and food courts in AEON Mall and Hikari Commercial Area within the province offering a variety of international cuisines, catering to diverse tastes. This robust dining scene highlights the province’s flourishing food service industry.
7. Summary:
Binh Duong Province is not only focused on developing industrial parks but also spearheading comprehensive development towards becoming a smart city, as previously mentioned. It has formed strong partnerships between the provincial government and private enterprises such as Tokyu and NTT, making it a pioneer in future city development. The province benefits from stable ground conditions, unlike the Mekong Delta to the south of Ho Chi Minh City, which is prone to land subsidence. Additionally, Binh Duong Province rarely experiences natural disasters like typhoons or earthquakes. Its elevated terrain also minimizes risks of flooding and other water-related hazards.
Furthermore, the living environment for expatriates, including residences tailored for assignees, a variety of high-quality Japanese and Western restaurants, and amenities like AEON Mall, is well-developed in Binh Duong Province. Moreover, the local Vietnamese population in this region is known for their gentle demeanor, contributing to fewer worker disputes or labor strikes compared to other areas. With a temperate climate year-round and an annual increase of 3-5% in the labor force, Binh Duong Province provides a conducive environment for manufacturing industry expansion, attracting a high-quality workforce. This makes it a well-suited destination for manufacturing investments.
齊藤公(Saito Hiroshi)
Business Advisor
G.A. Consultants Vietnam Co., Ltd
After graduating from university, he joined a PHP research institute and served as the head of the New York office. He then worked on the “Nagoya Port Redevelopment Project” at a subsidiary of the Chubu Nippon Broadcasting (CBC) company. He later shifted his base to Asia, where he was involved in the launch of “FM96.3” in Singapore, and the creation of “Hello Vietnam” and “Invest Asia” magazines in Vietnam. He then joined BW Industrial Development JSC, Vietnam’s largest rental factory development company, where he was responsible for attracting Japanese manufacturing companies. Currently, he is active as a consultant for the entry of Japanese companies at “G.A. Consultants”, one of the longest-standing Japanese HR consulting firms in Vietnam.
