Leading Vietnamese automaker Truong Hai Group Corporation (Thaco) and Binh Duong authorities signed Sunday an agreement on building a VND26,000 billion ($1.05 billion) industrial park in the southern province.
The signing was part of a conference on investment for the southeastern region chaired by Prime Minister Pham Minh Chinh. Under the agreement, both sides will work to start the project next year. The province has suggested suitable locations for the investor to study.
The industrial park will further the province’s hi-tech development aims and help businesses ensure supply of input materials, a Binh Duong official said.
It will not only lease land to the automobile industry but also other sectors, said Do Minh Tam, CEO of Thaco Industries. The automaker runs 14 factories manufacturing automobile parts at present.
Binh Duong has established 29 out of the 34 industrial parks it has planned, according to the province's Chairman Vo Van Minh. He said the high occupation rate at the industrial parks indicated Binh Duong’s attractiveness as an investment destination.
So far, Binh Duong has lured 4,079 foreign direct investment (FDI) projects with the registered capital of $40 billion. Notable projects include a $1 billion facility of Danish toymaker Lego and a $163 million factory of jewelry maker Pandora.
The province, a manufacturing hub in southern Vietnam, is home to three industrial parks developed by the Singapore-backed VSIP joint venture.