In the past 5 years, Bac Giang has been continuously ranked in the top provinces attracting the most FDI in Vietnam.
The advantages of Bac Giang province
Bac Giang’s geographical position is considered a “diamond” position – less than 50 minutes far from the center of Hanoi city, is the central of the East – North economic corridor including 6 localities: Lang Son, Hanoi, Bac Ninh, Bac Giang, Hai Phong and Quang Ninh.
Located on the arterial traffic route connecting Hanoi with Lang Son city and Dong Dang international border gate, Bac Giang is also known as one of the distribution and transshipment centers for goods and materials imported from China and vice versa.
Factors that make up Bac Giang’s FDI attraction
Policies to attract investment, especially FDI in Bac Giang province in recent years are quite openly, the administrative reform and improvement of the investment environment have always been focused, create an open mechanism to encourage businesses to invest.
Administrative reforms
In 2016, the Provincial Public Administration Center was put into operation, making administrative procedures more convenient, faster and transparent. In June 2020, Bac Giang established a Task Force to receive and process information, in order to promptly solve difficulties and problems for businesses and investors.
Improving the investment environment
Bac Giang actively prepares infrastructure, especially transport infrastructure for connected routes, as well as accelerates site clearance, completes planning and creates raw material areas to be ready to welcome investors.
With the strong deployment of solutions in education, the quality and quantity of trained workers in Bac Giang are gradually approaching regional and international levels. Each year, the province provides vocational training for about 41,275 students, with over 80 occupations and fields, contributing a high quality workforce to meet the recruitment demand of investors.
Over the past 5 years, Bac Giang has been continuously ranked in the top provinces attracting the most FDI in Vietnam. Particularly in the first 9 months of 2020, Bac Giang has recorded 22 foreign investment projects with registered capital of 307.9 million USD.
Limitations need to be overcome in FDI investment in Bac Giang
Economic experts said that FDI inflows into Bac Giang focus mainly on outsourcing and assembly, and very few projects focus on processing, manufacturing or agriculture. This is the first limitation that needs to be overcome, while Bac Giang has advantages in agriculture, with an outstanding specialty of lychee.
The FDI projects here mainly use medium and outdated technology, there are very few projects using high technology. The linkage between domestic enterprises and FDI enterprises is still limited, so the access to and transfer of technology is ineffective.
When the industrial land fund is increasingly limited, Bac Giang tends to give priority to investment projects, especially FDI investment using land efficiently, using less labor, using advanced and modern technology; having ability to invest in a stable and long term. With the available advantages and well-prepared investment attraction conditions, Bac Giang is optimistic that it can fulfill its target of 1 billion USD of FDI investment in 2020.
Source: Bac Giang information portal; Industry and Trade Newspaper, Labor Society Online Magazine
