EuroCham delegation visits Dong Nai province

HCMC - On Friday the 4th November, a Delegation from EuroCham visited Dong Nai province. The delegation held an information session and open dialogue with the People's Committee of Dong Nai and later visited the Amata industruial zone and the Clipsal (Schneider Electric) and Robert Bosch Group factories in the province.

 

For European investors, Dong Nai has a favorable geographical location because of its accessibility in relation to both Ho Chi Minh City and some of the biggest seaports in the southern region of Vietnam as well as the future  development of the international airport of Long Thanh that is scheduled to finish its first phase of development in 2020 with a capacity of 25 million passengers and 1.2 million tons of cargo per year.

Dong Nai, Binh Duong and HCMC- are the three powerhouse industrial provinces of the North Southeast, which alone account for a quarter of the non-oil gross domestic product of Vietnam. Already being one of the biggest industrial development centers in Vietnam. Dong Nai has 30 licensed industrial zones, 21 of which have begun production and or trading activities with an average occupancy rate of more than 60 percent.

According to the recent Vietnam Provincial Competitiveness report, the main drivers that attract foreign investors to the province are 1.  Labor costs 2. Tax or land incentives and  3. Infrastructure quality. This shows that despite the sometimes difficult macroeconomic environment, the incentives and development of Dong Nai province are effective and are being recognized by investors.

It is an encouraging sign to see that Dong Nai is focusing on high-tech agricultural and industrial development. It has already built the Long Thanh high-tech park with an area of 500 hectares, the DOFICO agricultural and industrial complex with an area of nearly 2,200 hectares and Dong Nai biotechnology application centre with an area 209 hectares.

The further investment in education and training to develop a highly skilled workforce will further help Dong Nai to fully achieve its true potential in becoming a top location for foreign direct investment, especially in supporting industries and hi-tech production.

Some European investors have already gone ahead. For example, the Robert Bosch Vietnam Co., Ltd, a subsidiary of the German Bosch Group, whose facilities the delegation visited this afternoon, has announced that it will increase investment for its production facility in Vietnam, from 73 million USD to 132.6 million USD.

EuroCham would like to thank the People's Committee of Dong Nai, Amata Industruial Zone, Clipsal (Schneider Electric) and Robert Bosch Group for their kind hosting during the delegation visit.