Welcoming the wave of German investment into Binh Dinh

(KTSG Online) – After the first 4 projects invested by German companies and the potential ahead, Binh Dinh’s leaders see this as a good time to launch investment – trade relations between Binh Dinh and the Federal Republic of Germany.

The investment promotion conference for German companies in Binh Dinh, together with the signing of cooperation between the German Chamber of Commerce and Industry (AHK) in Vietnam and the Binh Dinh Provincial People’s Committee, held today, 21-11, is seen as an opportunity to attract higher-quality and more sustainable first waves of investment from Germany.

Expectations for the USD 4.6 billion wind power project

Speaking at the event, Mr. Pham Anh Tuan, Chairman of the Binh Dinh Provincial People’s Committee, said that one of the priority areas for attracting German investors is projects related to industry and renewable energy.

He said that Binh Dinh province has always encouraged and created every favorable condition for investors to survey and study renewable energy projects.

Binh Dinh currently has 7 solar power projects with a total capacity of 529.5 MWp (Megawatt-peak – the rated capacity of a solar power system), of which 415.5 MWp are already operating and generating power.

In addition, this central province has 4 wind power projects with a total capacity of 111 MW, of which 81 MW are already operating and generating power.

“Binh Dinh has strengths in wind power, especially offshore, but at present there are very few projects and they are small in scale, not yet matching the province’s potential,” he said, adding that the Binh Dinh Provincial People’s Committee is proposing to add 18 solar power projects (total capacity 1,169 MWp) and 11 wind power projects (total capacity 6,174.5 MW) to Power Development Plan VIII (the national power development plan for 2021–2030, with a vision to 2050).

Mr. Tuan said that Germany’s PNE AG is studying an offshore wind investment with an expected capacity of 2,000 MW and investment capital of USD 4.6 billion. If this project is implemented, it will contribute greatly to the electricity output of the country and the region, and make a positive contribution to Binh Dinh’s socio-economic development.

“At present, the energy used by businesses mainly comes from the national grid, in which the share of clean energy is increasing year by year. If renewable energy projects are implemented quickly, the share of clean energy in Binh Dinh will rise rapidly,” Mr. Tuan added.

Information at the event: Mr. Thorsten Fastenau, representing PNE AG, said that if approved, PNE will build 154–166 wind turbines in three phases. Phase 1 would have a capacity of about 700 MW with investment capital of USD 1.6 billion, in waters 60–100 m deep in the 2 districts of Phu Cat and Phu My, with a commitment to carry out the project’s related technical surveys rigorously. Mr. Fastenau hopes a complete plan will be in place soon so that the group can plan its capital investment in the offshore wind project in Binh Dinh province and prepare its human resources.

Prioritizing green projects that serve the green economy

According to Mr. Simon Kreye, Deputy Ambassador of the Embassy of the Federal Republic of Germany in Vietnam, renewable energy projects like PNE AG’s are typical of German companies’ current investment trend. “At present, German companies’ investment priorities are projects related to the green economy and using alternative energy,” he said, and assessed that Vietnam in general and Binh Dinh province have much potential to attract German companies.

On this trend, Mr. Pham Anh Tuan, Chairman of the Binh Dinh Provincial People’s Committee, said that Binh Dinh has enough potential and capacity to meet these priorities according to its set plans.

Specifically, the German investors attending this conference are investing in electronics, high-tech metals, logistics, renewable energy, information technology, hi-tech and textiles. These fields fit the province’s investment attraction orientation very well, including industry, tourism, high-tech agriculture, port services and logistics, alongside urban economic development tied to urbanization, clean water, waste and wastewater treatment.

Mr. Tuan added that, in terms of development strategy, Binh Dinh is finalizing its provincial plan, with the goal of becoming a developed province among the leading group in the Central region by 2030; with an economy that grows quickly, sustainably and greener based on 5 growth pillars: manufacturing and processing industry, tourism services, logistics and transport, high-tech agriculture, and urbanization.

Answering questions from AHK and representatives of German companies about foreign investment attraction policies, a representative of the Binh Dinh Department of Planning and Investment said that Binh Dinh focuses on attracting high-tech, future-technology and modern service projects, and pays attention to meeting large corporations’ requirements for human resources and raw materials. The province prioritizes strategic investors, creating global production chains, and prioritizes high-tech enterprises and enterprises using clean-energy technology.

“We strongly commit to supporting investors from forming ideas and finding investment opportunities to implementing projects and quickly putting them into operation, whether the project is inside or outside the economic zone, industrial park or industrial cluster,” said Mr. Nguyen Thanh Hai, Director of the Binh Dinh Department of Planning and Investment. He added that if enterprises in general and German enterprises in particular invest in Nhon Hoi Economic Zone, including the Becamex VSIP Binh Dinh Industrial – Urban and Service Park, investors will receive the highest investment incentives of the Government of Vietnam as well as additional incentives from Binh Dinh province.

Specifically, enterprises will enjoy a 10% corporate income tax rate for the first 15 years, a 4-year exemption from the time they have taxable income, and a 50% reduction in tax payable for the following 9 years. The normal corporate income tax rate is currently 20%. Investors will be exempt from import duty for the first 5 years of production on raw materials and semi-finished products that Vietnam cannot yet produce or produces but not up to quality standards.

Currently the province has 4 projects by German companies under way, with total registered capital of more than USD 55 million. The largest is the high-tech foil and thin-film factory of Kurz Group, with total registered investment of USD 40 million. Binh Dinh’s exports reach 116 countries and territories across 5 continents. Of these, exports to Europe reach USD 273.3 million, or 21.6%, and exports to Germany specifically reach USD 71 million, or 5.6% of total export turnover.

Source: Welcoming the wave of German investment into Binh Dinh – The Saigon Times (thesaigontimes.vn)