- Binh Phuoc Province, one of the main industrial hubs in the key economic region of southern Vietnam, is known for its industrial, agricultural, commercial and service investments.
- Following the successful model of Binh Duong Province, Binh Phuoc has increasingly attracted new investment in industrial park infrastructure.
- Vietnam Briefing highlights the province as well as three localities ripe for investment.
Vietnam’s Binh Phuoc Province, which is part of the Southern Key Economic Region (SKER), is the largest of the nineteen provinces in southern Vietnam.
Binh Phuoc is of significant geographical importance as the province is not only a key connection between the southern highland provinces and the commercial center of Ho Chi Minh City via National Road 13, but is also adjacent to Cambodia via the border. International of Hoa Lu.
Specifically, it only takes about 1.5 hours to get from Tan Son Nhat International Airport in Ho Chi Minh City to Binh Phuoc province. Although it does not have a major seaport, Binh Phuoc does have a river port at Song Be. Such a favorable location makes Binh Phuoc Province an attractive destination for investment flows.
In 2021, according to the Binh Phuoc Statistics Department, Binh Phuoc’s Gross Domestic Product (GRDP) reached VND 46.2 trillion (US$2 billion), up more than 6.3% from that of Binh Phuoc. of 2020. This makes Binh Phuoc the locality with the strongest growth. rate in the Southeast zone and ranks 12th in the country for 2021.
FDI and business environment
For 2021, industry and construction dominated Binh Phuoc’s economy, followed by services at 30.44% and the remaining 23.33% occupied by agriculture, forestry and fishing. Moreover, the per capita income in Binh Phuoc reached 76 million VND or 3304 USD/person/year, up 9.51% from that of 2020.
Along with impressive growth in the industrial sector, export turnover and FDI also showed better performance in 2021 despite the pandemic. According to the Binh Phuoc Statistics Department, in 2021 the export turnover reached 3.5 billion dollars, up 17.8% from 2020, exceeding 12.9% of what was expected. .
On the other hand, the turnover of imports reached nearly 2.2 million dollars, up 32.73% compared to 2020, exceeding more than a quarter of what was expected. This means that in 2021, the province recorded a trade surplus of US$1.3 billion.
In 2021, there were 66 new FDI projects in Binh Phuoc with a registered capital of about 600 million USD, an increase of 88.5% in the number of projects and a three times increase in the capital volume. Sources of FDI inflows in 2021 were mainly from China, South Korea and Hong Kong.
Opportunities in industrial real estate
The opportunities for industrial real estate in Binh Phuoc can be attributed to three factors.
First, the prerequisite is government policies and guidelines. As stated in Decision 518/QDTTG, Binh Phuoc is expected to become a modern industrial province by 2050, which means the government will prioritize industrial expansion. This should stimulate demand for industrial real estate, aided by government incentives.
Secondly, land ready for investment and development in Binh Phuoc is abundant with around 60,000 km2 of the surface of the area. Compared to the northern provinces where a plot of land is usually owned by multiple owners, a plot of land in Binh Phuoc is usually owned by one owner and therefore easier to buy. The land is also flat and therefore easier to build.
Finally, labor recruitment is easier in Binh Phuoc, as the province is adjacent to Vietnam’s major population centers, including Dong Nai and Binh Duong provinces, as well as Ho Chi Minh City.
Opportunities in Binh Phuoc: 3 locations for your investment
Dong Phu District – A Potential Place for Industrial Growth
Dong Phu district of Binh Phuoc has a natural area of more than 93,445 hectares, which is 13.63% of the total area of Binh Phuoc and 0.28% of the total area of Vietnam. Dong Phu has an important geographical location with access to National Road 14 and DT741 Road.
The district connects Tay Nguyen Province with Ho Chi Minh City and enables Dong Phu, along with Chon Thanh District and Dong Xoai City to become a leading industrial, service and commercial triangle in the province.
Dong Phu has two industrial parks and four industrial clusters. Taking advantage of its natural landscape with a 420-hectare freshwater lake, the district also plans to prioritize the development of ecotourism.
Dong Xoai City – The Key Driver of Binh Phuoc Real Estate Growth
The provincial capital of Binh Phuoc, Dong Xoai Town, is located at the intersection of National Road 14 and DT741 Road, 101 km from Ho Chi Minh City. Dong Xoai has a total area of 16,771 hectares with a population of 120,000, making it a large city ripe for investment and development.
Dong Xoai also connects Tay Nguyen to the Mekong Delta provinces. In the future, there will be a direct railway connecting Dak Nong province via Dong Xoai town to Ba Ria – Thi Vai port of Vung Tau. These connections and transport accessibility would facilitate Dong Xoai’s trade with other parts of the country, making it attractive for investors.
There are four industrial zones in Dong Xoai, all with an area of more than 500 hectares attracting manufacturing enterprises. It has also created a ripple effect with flows of migrant workers driving demand for housing and infrastructure. In fact, many Vietnamese real estate giants have joined the market, including Vingroup, Becamex IDC, FLC and Dai Nam Corporation.
Phuoc Long town – promising tourist prospects
Similar to Dong Phu District and Dong Xoai Town, Phuoc Long Town occupies an important geographical position. Phuoc Long is located on two highways: DT741 connecting Dong Xoai town to Bu Gia Map district, and DT759 connecting National Road 14 to Binh Duong and Dak Nong provinces and Cambodia.
In particular, the province is now prioritizing the transformation of Phuoc Long town into a new tourist center of the province, especially ecotourism due to Thac Mo Lake and Ba Ra Mountain as they are tourist attractions. .
Industrial Park Spot – Viet Kieu IP
Along with several other industrial parks, Viet Kieu Industrial Park (IP) has become a competitive IP in Binh Phuoc with its accessibility and product diversity.
The Viet Kieu IP, developed by Minh Khang Investment and Development JSC, offers a wide range of services, including 103 hectares of ready-to-use land, covering up to eight industries, from electronics to food processing. It also means that investors have full autonomy to opt for the lot size and rental model they prefer.
The Viet Kieu IP caters to all the necessary support throughout the investment process, ranging from legal, construction and recruitment services to day-to-day public services, including a shopping center with a total area of 12,800 m2. The industrial park is also technology-driven and environment-oriented.
Viet Kieu IP companies are offered two years of tax exemption, 50% tax reduction for the next four years and other incentives including preferential import tax and investment procedure favorable.
Moreover, with good infrastructure connectivity with Ho Chi Minh City, National Highway 13, Hoa Lu to Binh Duong border and Cat Lai Port, IP has a significant advantage in terms of location and attraction for investors.
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