Binh Duong lures foreign investors with special care
Thousands of workers of Yazaki EDS Vietnam, which manufactures car parts in Di An City, are now very busy fulfilling orders.
Yazaki EDS struggled to survive from the pandemic. When the first Covid-19 cases were discovered at its factory on July 7, 2021, it had to suspend operation immediately.
To keep production uninterrupted, Yazaki applied the ‘three on-site’ model for three months, with resources equal to 20 percent of its current capacity. At that time, it operated modestly to ensure delivery to partners.
Besides paying higher production costs under the conditions of lockdown, it also had to pay many other expenses to ensure production, including salaries for 11,000 workers within three months, though they were not working.
When Vietnam began returning to its new normal, Yazaki resumed production quickly. With many orders coming, it has had to recruit 1,000 more workers.
Sang Ban Mai JSC, which manufactures electricity generators in Ben Cat town of BinhDuong province, also suffered from the pandemic.
According to CEO Tran Thanh Trong, the company also operated under the ‘three on-site’ model for three months. Affected by the pandemic, its revenue and profit in 2021 dropped by 30 percent.
In early 2022 the company began recovering production to fulfill the orders of 2021. As of August 2022, its revenue increased by 10 percent year on year.
In January-May 2022, Binh Duong obtained important achievements in socio-economic development, with registered domestic investment capital of VND30.997 trillion and registered FDI of $2.5 billion, turning it into the top FDI attractor in the country. Lego and Pandora are among its investors.
To date, Binh Duong has 4,000 valid foreign-invested projects totaling over $38 billion and 29 industrial zones (IZs) totaling 13,000ha.
The increased FDI and expansion of IZs have given Binh Duong opportunities for socio-economic development and made it the favorite destination of migrant workers.
Binh Duong chair Vo Van Minh said the province pursued the government policy of fighting the pandemic and maintaining production in a safe and effective manner.
The ‘three on-site’ helped avoid production disruption and prevent the spread of Covid-19.
“There were difficult decisions that we had to make, hanging by a thread. But now we can say for sure that the decisions were absolutely right,” Minh said.
He emphasized that Binh Duong always pays high attention to attracting investments, both domestic and foreign. The province has organized investment promotion conferences to understand investors’ problems and help solve them. Local officials have also gone abroad to meet with investors.