Top Vietnam Southern Industrial Park
Vietnam developed industrial zones to further boost foreign investment into the country.
Long Hau Industrial Park (LHC – investor of Long Hau Industrial Park) explains the industrial park system, how a businessperson can evaluate industrial zones, and some of the advantages of setting up in an industrial zone.
Accordingly, industrial zones are a popular investment destination for foreign businesses. The number of industrial zones in Vietnam continues to rise as foreign investment pours in. As of December 2018, there were 326 industrial zones set up countrywide, with 249 already in operation. The occupancy rate reached 73 percent, according to the Ministry of Planning and Investment.
While industrial zones work well for many businesses in the country, investors should take the time to learn more before creating a shortlist of locations to visit. Here, we highlight the most important considerations for your business to consider.
Industrial zone locations
Vietnam’s industrial zones are spread out across the country, and are concentrated within three administrative regions – the Northern, Central and Southern regions. Each region has its own characteristics, as well as unique incentive programs.
The Northern region comprises of 25 provinces, with the North Key Economic Zone (NKEZ) making up seven several cities and provinces, including Hanoi, Hai Phong, Bac Ninh, Hai Duong, Hung Yen, Vinh Phuc, and Quang Ninh. This proximity of this area to China is particularly suitable for companies that want to move manufacturing operations to Vietnam but continue operating in China. This is also part of the China plus one strategy.
The Central Key Economic Zone (CKEZ) compromises of five provinces – Thua Thien Hue, Da Nang, Quang Nam, Quang Ngai, and Binh Danh, with the major of activity occurring around Da Nang. Key industries include light industry projects such as food processing.
The Southern Key Economic Zone (SKEZ) is made up mainly eight cities and provinces, including Ho Chi Minh City, Binh Duong, Dong Nai, Long An, Ba Ria-Vung Tau, Binh Phuoc, Tay Ninh and Tien Giang.
Location considerations for industrial zones
According to the 2018 Provincial Competitiveness Index, the top ranked provinces in 2018 were Quang Ninh (North), Dong Thap (South), Long An (South), Ben Tre (South), and Da Nang (Central); representative of all different regions of Vietnam.
Options can be narrowed down by geographical concentration of industries as some regions host more enterprises from a specific industry than others do (see infographic above). Representing some of Vietnam’s main export sectors, garment and textile manufacturing are concentrated in both north and south Vietnam, while footwear and furniture manufacturing are both concentrated in south Vietnam. In which, the Southern Key Economic Zone (SKEZ) has developed the most strongly in recent years.
How to pick a location for your business?
There are many factors to consider about industrial parks, such as location, labor force, the cost of labor, infrastructure development, types of industries, corporate incentives…
Vietnam-Singapore Industrial Park (VSIP): Located in Binh Duong province’s Thuan An district, VSIP is a good opportunity for those looking to establish themselves in the heart of Vietnam’s economic core. Specializing in mechanical, electric, and medical equipment, the park has been a massive success in recent years – attracting 238 individual projects.
Amata City Bien Hoa Industrial Park Vietnam: The park is also the good choice for new facilities in Vietnam; especially those that need easy access to shipping, reliable power and water supplies, and a quality environment to attract and retain high quality employees.
Long Hau Industrial Park: With a total area of nearly 500 hectares, the park offers 5 main products: industrial land, ready-built factory for lease, built-to-suit factory, high-rise factory, high-tech factory, trading center and a wide range of services throughout the operation of investors.
See more: The ready-built factory vietnam for rent models and get the latest updates on rental prices for ready-built factories with Long Hau Corporation
Known as “logistic hub” with an advantage of great infrastructure connectivity, Long Hau Industrial Park has attracted many domestic and foreign enterprises in logistics, eCommerce, automobile… such as Fujitrans Vietnam, Lotte Logistics, "K" Line – Gemardept, Lock&Lock…
Long Hau Industrial Park owns a strategic location near Ben Luc – Long Thanh Highway, Saigon – Hiep Phuoc port and SPCT port… As government plan of infrastructre invesment close to Long Hau Industrial Park: Nguyen Van Linh – Nguyen Huu Tho intersection; expanding national highway 50 into 6 lanes and a project of national highway 50; project of Metro Line 4, it has huge positive effects to the investors operating in those fields.
Lock&Lock in Long Hau Industrial Park
