The Ministry of Planning and Investment has held a meeting on 20 years of foreign investment in Vietnam. Binh Dinh Province People's Committee also held a meeting summarizing foreign investment activities in Binh Dinh.
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The ground breaking ceremony of cattle-feed processing plant in Long My industrial zone. Photo C.H
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Slow attraction, small-scaled projects
Vietnam's investment environment and policies were not synchronous in the 1987-1997 period. Binh Dinh was a central province having difficulties in attracting foreign direct investment (FDI) project owing to its limitations such as infrastructure or distance at that time.
It got the first FDI project in 1992 and during this time there were only seven projects worth US$30.5 million, of which four projects were revoked licenses.
Together with Vietnam's development, Binh Dinh has gradually improved its investment environment since 1998, attracting 31 FDI projects with the capital of $385 million.
Of FDI projects, there are not any large scaled ones with advanced technologies. Most focus on industrial production sector. Their positive effect on Binh Dinh's socio-economic development is, therefore, limited.
The foreign-invested sector accounted for below one percent and the industrial production value only surged by 2 percent.
Initial effects
FDI enterprises have created jobs for nearly 1,000 local people. Most enterprises effectively operate, particularly in afforestation and aquiculture, such as Quy Nhon Afforestation Co., Ltd or Vietnam-Malaysia Binh Dinh Minerals Joint Stock Company.
Initially, FDI projects have positively influenced the provincial economic structure. They contribute to the trade promotion, introducing Binh Dinh's potential abroad.
FDI projects are always considered as an important role in Binh Dinh's socio-economic development despite their limited contributions. They have advantages of capital, technologies, and experiences, promoting the development of both domestic and foreign sectors.
At present, some large-scaled projects have been attracted. When being conducted, they are expected to further social and economic activities.
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