With huge potential development, Binh Dinh is proving its role in pushing economic development in the central region. According to the Binh Dinh People’s Committee, the province’s economic growth in 2009 reached 7.96 per cent.

Of which, the agriculture, forestry and fishery sector grew 7.3 per cent, the industrial and construction sector grew 7.43 per cent and the service sector grew 11 per cent.

“Binh Dinh kept high growth last year amidst the economic difficulties in the country. This implies that our province is emerging as an economic hub in the central region,” said Le Huu Loc, vice chairman of the Binh Dinh People’s Committee.

Binh Dinh is 300 kilometres south of Danang and 600km north of Ho Chi Minh City. The province is said to have huge potential to be a driving force for economic development in the overal central region. According to the annual Provincial Competitiveness Index conducted by the Vietnam Chamber of Commerce and Industry and the United States Agency for International Development, which reflects the quality of provincial investments and their business climate, Binh Dinh was ranked 11th in 63 provinces nationwide in 2008 and it jumped to the 7th position in 2009.

Binh Dinh’s Quy Nhon seaport is one among the busiest ports in Vietnam. Last year, the port was reported to handle about 4 million tonnes of cargo, much higher than Danang port—the existing largest port in the central region. Due to its favourable geographic position, Binh Dinh is on the radar of many domestic and foreign investors.

“With its advantageous geographical position and bright economic oultlook, Binh Dinh is a good place to make investments,” said Nguyen Thanh, director of the An Phu Thinh Joint Stock Company. Thanh’s company is now developing a large commercial centre in Binh Dinh. Furthermore, his company plans to build a multi-million dollar residential and tourism project in the province.

According to the Binh Dinh Planning and Investment Department, the province has so far received 33 foreign invested projects with total registered capital of about $420 million. The projects’ investors are from the United States, Japan, China, Korea, the United Kingdom, Singapore, Malaysia, Germany, Thailand and Australia.

The Hong Kong-based Hong Yeung Company is also developing a $30 million industrial park in Binh Dinh’s Nhon Hoi Economic Zone. So far—although the park is still under construction—four foreign investors have registered to build their factories inside the park, with total investment capital of about $100 million.

Wood processing is an attractive industry in Binh Dinh. The province has 400,000 hectares of forests that can provide materials for wood processing plants. So far, more than 110 enterprises have invested into this industry in Binh Dinh and they can export about 22,000 containers of wood furniture on average each year.

Binh Dinh government announced that it would continue encouraging investors to invest in wood processing industry over the next few years. Loc said that the province was also expanding public investments in infrastructure projects to improve its investment climate.

“Although we have been actively improving the infrastructure network and business climate in Binh Dinh, the quality of licenced projects are still below our expectations and the development of some investment projects remain at slow pace,” Loc said. According to the Binh Dinh Planning and Investment Department, some domestic and foreign investors were delaying construction of their projects due to the impacts of the economic slowdown.

Binh Dinh authorities recently revoked investment certificates of the Gemadept Corporation, which had registered to build Nhon Hoi seaport. “In the future we will be very careful in selecting investors for developing projects in Binh Dinh,” Loc said.