The northern province of Bac Giang has changed its policies on foreign direct investment (FDI) until 2025.
The new policies aim to encourage high-tech projects using locally-produced components and materials, undertaking to transfer technology and employing local workers.
They are also expected to promote FDI in key industries including electronic components, computers, and electric appliances.
Electronic projects are aimed to cluster around industrial zones in Viet Yen, Tan Yen, Hiep Hoa, Yen Dung districts and Bac Giang city. Apparel industries are expected to centre around Son Dong, Luc Ngan, Luc Nam and Yen The districts.
These industries will shift their focus from production to model design and distribution to add more value to products.
Mechanical industries are going to be located in Hiep Hoa and Yen Dung, whereas agro-forestry processing and food industries are situated in Hiep Hoa, Luc Ngan and Luc Nam, with priority given to vegetables and fruits processing projects that are export-oriented.
To meet the new policies’ target, the province has been taking various measures in favour of FDI including upgrading infrastructure, accelerating administrative reforms, improving provincial competitive index, and enhancing local human resources.
Additionally, six dormitories have been under construction in new industrial zones with an expected capacity for 80,000 workers.
In January, total FDI poured into the province was around 67.5 million USD, of which 2.5 million USD was the registered capital of two new projects and 65 million USD was the additional investments of seven adjusted projects.
In 2021, Bac Giang was among the 10 most FDI-attractive provinces nationwide.
The province granted investment approvals to 23 new projects with total registered capital of 645 million USD and adjustment approvals to 51 projects with additional investments of 686 million USD.
Notably, Fukang Technology Factory, a project with registered capital of 453 million USD, has come into phase-1 operation with around 300 million USD disbursed. The phase-2 operation will kick in from the second quarter of 2022 and Phase-3 from the second of 2023.
Meanwhile, a photovoltaic cell technology project invested by JA Solar Investment (Hong Kong) Limited with registered capital of 200 million USD is set to begin operation in first quarter of this year.