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Binh Duong's economy recovered positively in the first 6 months of 2022

In the first 6 months of 2022, difficulties caused by the Covid-19 epidemic and complicated and unpredictable developments of the world economy, especially the war between Russia and Ukraine, had certain negative impacts to most industries and fields such as import and export activities, input material prices in Viet Nam in general and Binh Duong province in particular. Thanks to the direction, guidance and facilitation of the Central Government, Ministries and central agencies, and the drastic direction of the Provincial Party Standing Committee, the Provincial People's Committee, the efforts and the local people and business community, Binh Duong has become province having dynamic economy and flourishing industries, chosen by many domestic and foreign investors as attractive destination for their long-term investment and development. Industrial development results of the first six months of 2022 are as follows:

Industrial production:

According to a latest report of the Binh Duong Statistical Office, the gross regional domestic product (GRDP) increased by 6.84% over the same period in 2021, in which the growth of the construction industry and service sector increased by 7.85%; and by 6.06% respectively. Despite facing many difficulties, the growth rate of industrial production activities still maintains a high growth rate in which: Industrial production index in the first 6 months was estimated to increase by 8.35% over the same period in 2021, in which the manufacturing index of the processing industry increased by 8.4%, contributing to a total revenue of businesses in industrial zones of more than USD 21.3 billion. Production and distribution of electricity, gas and water increased by 5.5%, of which commercial electricity output was estimated at 7.8 billion KWh, increased by 2.6% over the same period in 2021. The percentage of households using electricity per capita in the province reached 99.99%. Difficulties and obstacles of the projects on development of transmission lines and substations have been efficiently addressed and removed resulting in positive changes. Water supply and waste and wastewater treatment increased by 11%. Manufacturing industries such as: textile, construction, wood, electronic components... continued to achieve positive and comprehensive results. To achieve this result, Binh Duong constantly and actively transforms models, adopts new strategies, responds flexibly, implements bold digital transformation plans, cooperates with partners to expand production, ensures sufficient supply of raw materials for productions activities.

Operations of industrial parks and industrial clusters:

The province currently has 31 industrial parks (IZs) with a total area of 12,721 ha, of which 29 industrial zones have been put into operation with a total area of 11,021 ha. Secondary investors have invested in building infrastructure and factories with a total capital of 2,137 billion VND, equal to 63.8% compared to the same period in 2021. Foreign direct investment attraction reached 1,772 million USD. Businesses operated in the industrial park have disbursed 1.3 billion USD. Currently, the industrial zones have attracted 2,965 projects, including 2,309 FDI projects with a total registered investment capital of more than 24.3 billion USD and 656 domestic investment projects with a total registered investment capital of nearly 76,608 billion VND. The occupancy rate reached 90.9 %, in which the occupancy rate of 12 industrial clusters with a total area of 790 ha reached 67.4 %. Most large enterprises investing in Binh Duong choose to invest in concentrated industrial zones. To meet the increasing demand for land lease of domestic and foreign investors, the Provincial People's Committee held the ground-breaking ceremony of the Vietnam - Singapore Industrial Park III, implementing a project to change the infrastructure investment for Bau Bang and Cay Truong Industrial Parks to welcome businesses to establish their production and business facilities.

Trade in services, import and export:

Trade in Services: Total retail sales of goods and services in the first 6 months of the year was estimated at VND 133,300 billion, increased by 12.3% over the same period in 2021. Market surveillance forces regularly check and control the market and prices of essential goods, medical equipment for disease prevention and control. Facing big swings in oil and gas prices, the province has directed the functional agencies to come up with solutions to ensure that the demand for petrol and oil is well met, regularly inspect and punish businesses hoarding goods, increasing prices in violation of regulations to prevent them from taking advantage of the situation to cause extra burden on consumers.

Import and Export: In the past 6 months, production, business activities and global supply chains have been restored, helping the province's import and export activities recover quickly. Specifically, as of June 30, 2022, export turnover of goods was estimated at 19,181 billion USD, increased by 10% over the same period in 2021. Import turnover was estimated at 12.792 billion USD, decreased by 5.8%. The trade surplus reached a record of more than 6 billion USD. Notably, major export markets of Binh Duong have been significantly recovered in recent years resulting in strong growth of the province's export turnover compared to the same period in 2021. Specifically, export turnovers to the US and EU markets reached 6.4 billion USD, more than 2.2 billion USD; Korea, Japan reached more than 1.8 billion USD; Taiwan (China) reached more than 1.4 billion USD and Hong Kong (China) reached nearly 1.4 billion USD.

In the context of the complicated development of the COVIDE 19 pandemic, the world economy and politics is featured with many unpredictable factors, in order to maintain and improve the achieved results, Binh Duong province has set the following goals for the year 2022:

Striving to reach a total retail sales of consumer goods and services at 16%;

The province's GRDP growth in 2022 will reach 8 - 8.3%;

Regarding the economic structure, continue to take industry and service sectors as the key economic engines with the corresponding proportion of industries - services 67.41% - 21.87% respectively;

GRDP per capita at 169.8 million VND/year;

Index of industrial production (IIP) increased by 8.9% compared to 2021.

In order to realize the above objectives, Binh Duong province commands all levels and sectors to: (1) closely monitor the market and commodity prices for timely solutions to balance and stabilize (especially electricity, oil and gas prices); (2) contact and cooperate with business associations, industry associations to help them address difficulties and problems; (3) continue to re-organize the industrial sector towards developing competitive and potential industries based on the adoption of innovative and creative approaches; (4) improve the efficiency of attracting investment capital and applying science and technology, especially green technology, green finance, green governance; (5) develop high-tech agriculture, deep processing, large-scale commodity production, organic agriculture; (6) further improve production chains, processing and consumption of agricultural products; (7) restructure the economy towards a balanced and comprehensive economic development, gradually forming the third layer in the project "Innovation and Creativity Zone in Binh Duong province", focusing on industrial development in association with scientific and technological development; production linked with research and development, high quality education and training ; (8) develop trade and services toward connecting, expanding international partnerships (WTC, Horasis, ICF, ...) to support the current ecosystem, narrowing the gap between industrial and service sectors in the economic structure; (9) continue to promote industrial reforms on the basis of application of technical advances and technological innovation, digital transformation and achievements of the fourth industrial revolution; (10) prioritize the development of spearhead industries, high-tech industries, supporting industries (information, telecommunications, electronics, artificial intelligence, automobile manufacturing, biotechnology, biomedical electronics, software production, clean and renewable energy); (11) promptly establish high-tech industrial parks, specialized industrial parks and gradually form provincial innovation and creativity zones; step up the relocation of production facilities into industrial zones and clusters; (12) expeditiously deploy the approved IPs and review and prepare the necessary conditions to integrate the new IPs into the provincial master planning; (13) take gradual steps to establish Cay Truong - Bau Bang science and technology industrial park; and (14) continue to build a pilot project on "Smart Village" in Bach Dang commune (Tan Uyen town).

Dinh Thi Bich Lien

Department of Information, Library and Trade Promotion - VIOIT