FDI firms eye central Vietnam province for billion-dollar projects

The central Vietnam province of Binh Dinh is emerging as a key destination for foreign direct investment (FDI), with many companies exploring large-scale, high-tech projects that will drive sustainable economic growth in the locality.

A surge in investment interest

Binh Dinh, which aims to attract over 100 projects in 2025, has seen a surge in interest from global corporations across various sectors. One of the most significant proposals is a high-tech polyester fiber recycling plant, worth between $700 million and $1 billion, proposed by Swedish textile producer Syre.

At a meeting with the Ministry of Industry and Trade and the provincial People's Committee on February 19, Tim King, operations director at Syre, committed to applying modern technology to the polyester recycling project to meet world-leading environmental protection standards, while also adhering to Vietnam's environmental regulations.

The group has prepared financial plans for the project and hopes to receive support from Vietnamese authorities to finalize it, he added.

Environmental Landscape Pte Ltd (EL) from Singapore has proposed five projects in Binh Dinh, involving land reclamation and fertilizer production, solar energy combined with shrimp farming and seafood processing, wood pellet and biochar production, development of multifunctional industrial clusters, and solar energy industrial zones (including a solar-water farm).

Nguyen Tuan Thanh, standing Vice Chairman of the provincial People's Committee, has assigned relevant departments to introduce local partners capable of producing organic fertilizers for cooperation with EL on the land reclamation and fertilizer project.

Other departments were tasked with introducing suitable industrial zones or clusters for the wood pellet and biochar project.

The departments will also assist EL in implementing the multifunctional industrial cluster project at the Cat Hanh Industrial Cluster in Cat Hanh commune, Phu Cat district, once the Saigon-Nhon Hoi Industrial Park’s infrastructure is completed.

For the solar energy-shrimp farming and seafood processing project and the solar energy industrial zone project, Thanh suggested the investor continue their surveys, prepare detailed plans, and propose suitable land areas based on current land resources of the province.

Samsung E&A Vietnam Co., Ltd. (SE&A) is seeking investment opportunities in Binh Dinh for clean water supply, wastewater treatment, and urban solid waste treatment (waste-to-energy) projects, acting as an investor and provider of technical solutions, EPC contractor, and project operator under the public-private partnership (PPP) model.

In response to SE&A’s proposal, Binh Dinh leaders introduced the Hoai Nhon Waste Incineration Plant project with a capacity of 250 tons per day, which can be raised to approximately 500 tons, for SE&A to consider investing in.

Binh Dinh has also proposed wastewater treatment projects in three localities with official development assistance (ODA) funding, including Hoai Nhon township with a capacity of 7,000 cubic meters per day, An Nhon township (10,000), and Tay Son district (5,000).

Currently, the districts and industrial zones (IZs) and industrial clusters (ICs) in Binh Dinh province need wastewater treatment infrastructure investments. If SE&A provides suitable technology and reasonable pricing, the province will allocate funds for cooperation with the company to implement these projects and introduce the company to infrastructure developers of IZ and IC projects.

Infrastructure development to support growth

At a meeting with investors from Ho Chi Minh City earlier this year, Binh Dinh Chairman Pham Anh Tuan introduced the province's infrastructure projects inviting investments.

These include a semiconductor AI high-tech park and a 700-hectare cultural industrial park. Investors have committed to developing several industrial clusters in the locality.

Tuan emphasized the importance of connecting industrial zones with urban areas to improve living conditions for workers. The Becamex VSIP Binh Dinh service-urban-industrial complex, covering 1,000 hectares, is one such example, with four accompanying urban areas planned for development.

He also noted that the Quy Nhon-Pleiku Expressway, slated for completion in 2027, will significantly improve connectivity, while the expansion of Phu Cat Airport, starting in August, is expected to increase accessibility to the province.

Binh Dinh is also set to develop a deep-water port in Phu My, expected to be operational by 2028, which will serve as a hub for industrial activities, while Quy Nhon Port will transition to serving tourism.

Despite the positive outlook, Tuan acknowledged several challenges, particularly in terms of human resources and the region's slower pace of attracting investment. However, he reassured potential investors that the provincial government is committed to completing critical infrastructure projects to create a conducive environment for business.

"We are committed to investing in infrastructure up to the boundary of the industrial zones. For instance, for Phu My Industrial Park, we are investing approximately VND2 trillion ($78.3 million) in connecting roads to the expressway. Once the industrial park’s infrastructure is completed, we will ensure the roads are fully integrated," he added.