Binh Duong (VNA) 🎀- Authorities of the southern industrial hub of Binh Duong held a meeting with two major foreign direct investment (FDI) enterprises -Polytex Far Eastern Vietnam Co., Ltd. and Kumho Tire Vietnam Co., Ltd.- to address challenges facing the firms in production and business operations while encouraging their further expansion.
Polytex Far Eastern Vietnam, a subsidiary of the Taiwan (China)-based Far Eastern Group, currently holds a total investment capital of 1.62 billion USD. The parent group ranks among Taiwan’s top five conglomerates, operating in 10 business sectors with 247 subsidiaries, including nine publicly traded companies.
The company is currently implementing phase two of its project in Binh Duong, while phase three awaits environmental impact assessment approval. Construction is scheduled to commence in the third quarter of 2024, with completion expected by 2027.
Polytex Far Eastern Vietnam asked for the locality's support to finalise land-use rights certification for its 2.63-hectare dormitory, and assistance in more convenient power supply.
The company proposed updating the province’s power planning to increase its gas power plant’s capacity from 30MW to 40MW to optimise operations. Furthermore, it aims to develop a 15MW self-consumption solar power project in two phases: 10MW in 2025 and 5MW in 2028.
Concerns were also raised regarding value-added tax (VAT) policies and the impact of global minimum tax regulations. Regarding customs procedures, it sought flexibility in invoicing to avoid delays in declarations and logistics operations.
Kumho Tire Vietnam, a subsidiary of the Republic of Korea’s Kumho Tire Group, plans to invest nearly 300 million USD in its phase three expansion starting in early 2025, increasing its total investment in Vietnam to 970 million USD. Upon completion, the factory’s annual production capacity will rise from 13.5 million to 17 million tyres, with a revenue target of 800 million USD in 2024.
The company sought the province’s guidance to complete legal procedures for the acceptance of its phase two expansion. Additionally, it expressed concerns over the US bilateral tax policies and called for local government support.
At the meeting, Binh Duong leaders acknowledged the concerns and committed to directing relevant agencies to swiftly resolve issues, ensuring a conducive business environment for continued growth.
Bui Minh Thanh, Vice Chairman of the provincial People’s Committee, emphasised the province’s high evaluation of FDI enterprises and pledged to address obstacles promptly. Binh Duong will also petition central government ministries for appropriate policies to support businesses, particularly amid growing global investment competition, he pledged.
Regarding fire safety regulations, the province will guide companies in compliance and relay difficulties to the central government for potential resolution, said the official. Concerning building density regulations, Binh Duong will review and provide timely feedback to enterprises, he said.
In 2025, Binh Duong aims to attract a new wave of investment, targeting 23 domestic projects worth 42 trillion VND (1.7 billion USD) and over 1 billion USD in foreign investment. With a focus on sustainable and green development, the province is seeking to maintain double-digit economic growth and reinforce its status as a premier investment destination for both domestic and international businesses./.
