Han Hwang Ind. Co., Ltd. and Shin Shin Machinery Co., Ltd. of South Korea plan to invest $5.1 million in a project to manufacture spare and auxiliary parts for cars and other motor vehicles in the south-central province of Binh Dinh.
Nguyen Bay, director of the provincial Investment Promotion Center, said the Binh Dinh Economic Zone Administration has granted an investment registration certificate to the investors.
The project will cover 30,000 square meters in the Becamex Binh Dinh Industrial Park, which is part of the Nhon Hoi Economic Zone in Van Canh district.
Once operational, it is expected to produce 6.5 tons of auto, engine and brake parts, and 4.5 tons of heavy machinery and equipment spare parts per year.
The project is scheduled for completion and trial production in the first to third quarters of 2026 before going into official operation.
"The project comes after a year of negotiations since a delegation of officials from Binh Dinh province visited South Korea to promote investment and work directly with Han Hwang Ind. Co., Ltd. in September 2022," Bay said.
According to the official, this year the province has faced many difficulties in foreign direct investment (FDI) attraction as markets in Europe have been greatly affected by the global economic downturn.
"From now until the year-end, provincial leaders will promote investment in Israel, the U.S. and Canada," Bay noted.
Since the beginning of this year, Binh Dinh province has attracted three new FDI projects worth over $5.2 million.
The coastal province has so far lured 88 FDI projects with total registered capital of over $1.15 billion. Of which, there are 49 projects outside economic and industrial zones capitalized at $255.88 million, and 39 in the zones worth $897.92 million. Notably, South Korean investors have poured $76.6 million into the province.