Note: This article looks broadly at the business environment in Binh Duong. For specific details on setting up a company in Vietnam see: How to Start a Business in Vietnam.
Binh Duong province has emerged as a dynamic economic hub in Vietnam, attracting significant foreign direct investment. Its strategic location, coupled with a well-developed infrastructure and a relatively supportive government, has made it a prime destination for manufacturing and industrial operations. The province boasts a large concentration of industrial parks, offering ready-made facilities and utilities for businesses.
Binh Duong’s skilled workforce, particularly in manufacturing and technical fields, is a key advantage for companies seeking to establish operations in the region. The province has invested heavily in education and training to meet the growing demand for skilled labour. Additionally, the government has implemented various incentives to encourage foreign investment, including tax breaks, land lease concessions, and streamlined administrative procedures.
While Binh Duong offers numerous opportunities, businesses should also be aware of potential challenges such as traffic congestion, environmental concerns, and competition from other provinces. Nevertheless, with careful planning and a strong understanding of the local market, companies can successfully establish and grow their operations in Binh Duong.
Key Economic Sectors in Binh Duong
Binh Duong has emerged as a manufacturing powerhouse in Vietnam, with several key economic sectors driving its growth:
- Manufacturing: As the cornerstone of the province’s economy, manufacturing accounts for a significant portion of its GDP. Key industries include electronics, textiles, footwear, and automotive components. Binh Duong boasts numerous industrial parks, attracting both domestic and foreign investors.
- Supporting Industries: To support the manufacturing sector, Binh Duong has developed a robust ecosystem of supporting industries, including logistics, transportation, packaging, and materials supply.
- Real Estate: The rapid industrialization and urbanisation of Binh Duong have led to a growing real estate sector. Industrial parks, warehouses, and residential developments are key areas of focus.
- Services: The service sector is gradually expanding, with a focus on finance, banking, insurance, and business support services.
Binh Duong’s strategic location, coupled with a skilled workforce and supportive government policies, has made it a preferred destination for businesses operating in these sectors.
Public Administration Performance Index
The Public Administration Performance Index (PAPI) measures the efficiency and quality of public administration services provided by a government. In the context of Binh Duong, the PAPI provides insights into the city’s governance effectiveness.
PAPI, Binh Duong, 2019 to 2023
Note that missing data from 2023 has been attributed to ‘data noise’. It’s not clear what this means.
| 2023 | 2022 | 2021 | 2020 | 2019 | |
| Participation | 0 | 5.95 | 5.28 | 4.29 | 4.80 |
| Transparency of Local Decision-making | 0 | 6.21 | 6.25 | 5.09 | 5.65 |
| Vertical Accountability | 0 | 4.54 | 4.72 | 4.65 | 4.58 |
| Control of Corruption in the Public Sector | 0 | 7.94 | 8.15 | 6.60 | 6.90 |
| Public Administrative Procedures | 0 | 7.48 | 7.63 | 7.52 | 7.26 |
| Public Service Delivery | 0 | 8.21 | 8.07 | 6.74 | 7.19 |
| Environmental Governance | 0 | 3.47 | 3.67 | 3.07 | 3.28 |
| E-Governance | 0 | 3.66 | 3.40 | 2.80 | 4.31 |
| Unweighted PAPI Score | 0 | 47.45 | 47.18 | 40.76 | 43.97 |
Source: The Viet Nam Provincial Governance and Public Administration Performance Index
Provincial Competitiveness Index
The Provincial Competitiveness Index (PCI) is a key tool for evaluating the business environment in Vietnam’s provinces. Binh Duong, as Vietnam’s economic hub, is always a focal point in PCI reports.
PCI, Binh Duong, 2019 to 2023
| 2023 | 2022 | 2021 | 2020 | 2019 | |
| Entry Costs | 6.65 | 6.32 | 6.38 | 8.05 | 6.83 |
| Access to land | 6.75 | 7.06 | 7.21 | 6.92 | 7.67 |
| Transparency | 6.45 | 6.67 | 6.98 | 6.4 | 6.68 |
| Time Costs | 7.71 | 7.35 | 8.01 | 7.76 | 6.89 |
| Informal Charges | 6.86 | 6.92 | 7.06 | 6.98 | 6.11 |
| Policy Bias | 5.31 | 6.07 | 6.36 | 6.69 | 5.78 |
| Proactivity | 6.44 | 6.32 | 6.74 | 7.09 | 6.56 |
| Business Support Policy | 6.67 | 6.13 | 7.64 | 7.48 | 6.57 |
| Labor Policy | 6.46 | 5.93 | 6.37 | 6.92 | 7.41 |
| Law & Order | 7.13 | 6.84 | 6.47 | 6.63 | 6.14 |
| PCI Scores | 66.43 | 65.13 | 69.61 | 70.16 | 67.38 |
| Ranking | N/A | 36 | 6 | 4 | 13 |
Note: As of 2023 PCI only publishes rankings for the top 30.
Source: Provincial Competitiveness Index 2023
Foreign direct investment in Binh Duong
Binh Duong has emerged as a magnet for foreign direct investment in Vietnam. Its strategic location, well-developed infrastructure, and supportive business environment have made it a prime destination for global investors. The province has consistently ranked among the top FDI recipients in the country, attracting billions of dollars in investment annually.
Of note, in 2024, up to the end of July, a total of 108 foreign direct invested projects had been initiated in Binh Duong. These projects saw commitments of a combined US$1.13 billion in registered capital. This was a slight improvement over the first seven months of 2023 during which Binh Duong recorded an US$1.08 billion of newly registered capital.
Entertainment and Nightlife in Binh Duong
Binh Duong, while primarily an industrial hub, is gradually developing its entertainment and nightlife scene to cater to the growing population of both locals and expats.
While not as vibrant as Ho Chi Minh City or Hanoi, Binh Duong offers a more relaxed atmosphere with a mix of local and international entertainment options. You can find a variety of bars, pubs, and karaoke establishments, especially in the city centres of Thuận An and Di An. These venues often feature live music performances, creating a lively ambiance.
For those seeking outdoor activities, Binh Duong has several parks and recreational areas where you can enjoy picnics, cycling, or simply relax. Additionally, the province is home to a growing number of shopping malls and entertainment complexes offering various activities for families and individuals.
While the entertainment scene in Binh Duong may not be as extensive as in larger cities, it is steadily improving to meet the evolving needs of its residents and visitors.
What’s next?
Binh Duong has emerged as a dynamic industrial hub in Vietnam, offering attractive opportunities for foreign investors. Its strategic location, well-developed infrastructure, and supportive business environment have contributed to its status as a top FDI destination. The province’s focus on manufacturing, coupled with a growing service sector, presents a favourable landscape for businesses seeking to establish a presence in Vietnam.
However, like any investment location, Binh Duong has its challenges. Traffic congestion, environmental concerns, and competition from other provinces are factors that businesses need to consider. Nevertheless, with careful planning, strategic partnerships, and a deep understanding of the local market, companies can successfully tap into the potential of Binh Duong and achieve their business objectives.
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