Bắc Giang aims to attract South Korean FDI for robust development

The overview of the Vietnam-Korea College of Technology in Bắc Giang Province, built with a total investment of $16 million, including $10 million in non-refundable ODA funding from the South Korean Government. — VNS Photo

BẮC GIANG — Positioning industry as the cornerstone of its development, Bắc Giang Province has actively promoted and attracted foreign direct investment (FDI), notably from South Korea.

Bắc Giang’s FDI has consistently ranked among the top 10 provinces and cities nationwide, underscoring its status as a prime destination for numerous enterprises and major corporations.

On September 16, 2023, Hana Micron Vina Co Ltd from South Korea inaugurated the semiconductor production plant project in the Vân Trung Industrial Zone. This marks the first semiconductor production project in Northern Vietnam.

Covering a total area of 66,000 square metres, the company completed and put Factory 1 into operation in 2022. On September 16, 2023, Hana Micron Vina officially inaugurated and commenced operations at Factory 2. By 2025, the company plans to increase total investment to over US$1 billion, with projected revenue reaching $800 million and providing employment for around 4,000 workers.

Phan Thế Tuấn, Vice Chairman of the provincial People’s Committee, said that South Korea currently leads in both the number of FDI projects implemented in Bắc Giang and the total registered capital. Korean enterprises contribute approximately 25 per cent to the total industrial production value of the province, 30 per cent to the value of import and export, and 21.3 per cent to the local budget.

In recent times, the province’s leaders, along with departments and agencies in Bắc Giang, have collaborated with international organisations in Việt Nam, including the Korea Trade-Investment Promotion Agency (KOTRA), and the country’s diplomatic representatives abroad in information exchange and investment promotion efforts to showcase the province’s strengths and attract investment.

Tuấn shared that Bắc Giang’s development direction aligns with the green growth trend. To this end, the province has already issued the Green Growth Action Plan for the 2021-30 period. The plan aims to develop crucial economic sectors towards greening, enhance the production and use of renewable energy, focus on investing in the development of sectors to address environmental issues, and contribute to economic restructuring, aligned with a sustainable development model. Additionally, the province prioritises the establishment of smart urban models as a central solution to drive socio-economic development.

Expressing his hope for future cooperation, Tuấn emphasised the potential collaboration between Bắc Giang and capable, experienced South Korean partners in developing smart cities, green growth, and sustainable investments. He believes this partnership will be mutually beneficial, offering investment opportunities for Korean enterprises in Bắc Giang.

Bắc Giang City and Seo District of Daejeon City, South Korea, signed a cooperation agreement. — VNS Photo

According to the provincial People’s Committee, by 2030, Bắc Giang plans to develop 29 industrial zones covering 7,840 hectares and 65 industrial clusters covering 3,164 hectares. The province aims to achieve a total actual investment of VNĐ246 trillion (US$10.3 billion) during the 2021-25 period and VNĐ613 trillion during the 2026-30 period, accounting for 47-48 per cent of the total social investment.

Efforts to enhance land use efficiency for investment projects are targeted to increase by an average of 6 per cent per year, reaching VNĐ800 million per hectare in 2025 and VNĐ1.1 billion per hectare by 2030. It is envisioned that all investment projects will complete environmental protection procedures before commencing operations. By 2025, 45 per cent of projects are expected to use advanced technology, increasing to 55-60 per cent by 2030.

Bắc Giang encourages and attracts globally renowned partners with significant financial capabilities, stable, long-term investment potential, and the ability to invest in the production of supporting products. The province discourages foreign investment projects without a commitment to long-term investment in the region (small projects that lease factories). The focus is on attracting investments based on the global development of specific industries, without being limited to any particular country or partner.

Vice Chairman of the People’s Committee of Bắc Giang Province, Phan Thế Tuấn (centre), attends a meeting with South Korea. — VNS Photo

In October 2023, Bắc Giang attracted a total converted investment capital of $161 million, 3.4 times higher than October 2022. Consequently, in the first 10 months of 2023, the province attracted a total investment of $2.2 billion, doubling the figure from the same period last year.

Trần Hải Linh, Chairman of the Vietnam-Korea Business and Investment Association, affirmed the association’s readiness to accompany Bắc Giang in promoting and attracting investment with Korean partners. This includes supporting export activities, collaborating on high-quality human resource development, and recruiting labor for Korean enterprises in Việt Nam. — VNS