Bac Ninh lures European investors to its industrial hub

August 31, 2023 | 12:50
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The northern province of Bac Ninh is striving to entice more European investors, further expanding opportunities in the area.
Bac Ninh lures European investors to its industrial hub

A delegation from Bac Ninh province, led by Deputy Chairman of Bac Ninh People's Committee Dao Quang Khai, introduced the province's industrial infrastructure and vision for foreign investment at the Bac Ninh – Where to base your production in Vietnam business seminar held on August 29 in Zurich, Switzerland.

The seminar, organised by Bac Ninh People's Committee, the Embassy of Vietnam in Switzerland, the Swiss-Vietnamese Business Gateway, and the Swiss-Asian Chamber of Commerce, attracted attendees representing more than 30 companies from Switzerland, as well as neighbouring countries such as Austria, Belgium, Germany, and Italy. It also drew the participation of business associations and universities in Switzerland.

Addressing the event, Ambassador of Vietnam to Switzerland Phung The Long said, “The seminar is an opportunity for leaders of Bac Ninh province – one of Vietnam's leading localities in terms of foreign investment – and local businesspeople to exchange information and share experiences to further promote trade and investment cooperation.”

Over the last 25 years, Bac Ninh’s economy has achieved an average growth of 13.9 per cent on-year. It has become a high-tech industrial centre, with industry and construction accounting for 76.5 per cent of its economy.

By July, Bac Ninh had granted investment registrations to 1,975 valid projects from 39 countries and territories, with the total registered capital of $24.44 billion. This places it seventh in the country in terms of accumulated foreign direct investment.

Large corporations that have built factories in the province include Samsung, Foxconn, Canon, PepsiCo, Amkor, GoerTek,and Vietnam-Singapore Industrial Park.

There are four Swiss projects in the province, with a total investment of $109.34 million, namely ABB, which manufactures electricity distribution equipment and solutions, Sika, which produces additives for use in construction, and Oerlikon, which specialises in metal engineering and coating.

Speaking about his company’s investment in Bac Ninh, Petr Valenta, global product line manager for Compact Secondary Substations and Electrification Distribution Solutions at ABB, said, "ABB chose to build its first factory in Bac Ninh in 2010, and expanded it further in 2022, due to its geographical position, good infrastructure, supplier base, supportive local authorities, and strong education system."

Meanwhile, Marco Freidl, head of Group Strategy and Business Development at Oerlikon Group, which opened a representative office in Hanoi in 2017 and built its first factory in Bac Ninh in 2019, has seen a strong production ecosystem in Bac Ninh that has also supported the group’s connections with partners and customers.

A number of participants also outlined their companies’ successful operations in Vietnam, particularly in the north thanks to the proximity to global seaports, such as Belgium's DEEP C Industrial Zones Vietnam that operates industrial infrastructure, and Denmark's DSV Air and Sea that is active in the transport and logistics sector.

Khai said, "We are continuing to call for investments from Europe to turn Bac Ninh into a leading electronics manufacturing centre in Vietnam. We want to ensure it becomes the main driving force for economic growth in Industrial and Hi-Tech Development Zone that encompasses Yen Phong, Que Vo, Luong Tai, Thuan Thanh, and Tien Du districts."

Bac Ninh province currently has 16 industrial parks (IPs) under 24 ventures that build and develop industrial infrastructure covering a total area of 6,398 hectares.

The 16 projects have been put into operation have secured an occupancy rate of 58.6 per cent, and a further eight are under construction. The IPs are equipped with synchronised and modern infrastructure, and social welfare has also been strengthened, ensuring the security of both residents and employees.

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By Thanh Van

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