From 2021 to 2023, Vinh Phuc province has attracted a total of 1.9 billion USD in foreign direct investment (FDI). It is estimated that by the end of 2023, the province will have 468 active FDI projects with a total registered capital of 7.9 billion USD. This demonstrates the investment activities and building factories in Vinh Phuc have shown high and stable growth, effectively meeting the demands of investors.
Advantages of choosing to build factories in Vinh Phuc for investors
Prime geographical location
Vinh Phuc is a key region in the North of Vietnam, serving as a gateway to the capital city of Hanoi. It is located on National Highway 2, the Hanoi – Lao Cai railway, and the Noi Bai – Lao Cai – Yunnan (China) expressway. It acts as a bridge connecting the Northwest provinces with Hanoi and the Red River Delta.
Furthermore, Vinh Phuc is in close proximity to Noi Bai International Airport and has direct access to the Hai Phong port and the deep-water port of Cai Lan. With its advantageous geological features, Vinh Phuc has become a promising location for economic development in the region and is suitable for investors when it comes to building factories.
Diverse topography
Vinh Phuc province is divided into three distinct ecological regions: the Delta, the Midland, and the Mountainous areas. With diverse terrains and development potentials in each region, Vinh Phuc is confident in building a multi-sector, multi-field economic model.
- Delta region: This area has low and flat terrain, mainly consisting of alluvial soil deposited by large river systems such as the Red River, Lo River, and Day River, which have the fertile alluvial soil that is favorable for agricultural cultivation and suitable for industrial production and processing of agricultural products. Additionally, this region is a major supplier of construction materials such as granite (around 50 million cubic meters), kaolin, sand, and clay,…
- Midland region: This region features a mixture of hills and valleys from east to west. It has abundant land resources, particularly suitable for the development of concentrated industrial parks and resorts.
- Mountainous region: With extensive land area, low population density, low land clearance costs, and abundant labor force, the mountainous districts in Vinh Phuc hold attractive potentials for investors to build factories in the area.
Connected and Convenient Transportation Network
The transportation system in Vinh Phuc province consists of roadways, railways, and waterways:
- Roadways: Vinh Phuc has a system of Hanoi – Lao Cai highways, as well as several national highways that run through the province. This facilitates trade with major economic centers in the northern region, as well as border gates, seaports, and airports,..
- Railways: Vinh Phuc has the Hanoi – Lao Cai railway, which serves as a bridge between the capital city of Hanoi and the northern midland and mountainous provinces, leading to Yunnan, China. The section passing through Vinh Phuc province spans 41 kilometers, connecting important areas such as Phuc Yen city, Vinh Yen city, Binh Xuyen district, Tam Duong district, and Vinh Tuong district.
- Waterways: Along the Red River and the Lo River, Vinh Phuc has national-level river ports such as Vinh Thinh, Duc Bac, and Nhu Thuy.
Furthermore, Vinh Phuc has a well-planned distribution of transportation routes, and the transportation network has been invested in and upgraded. In addition, the province focuses on investing in interprovincial and national highways., creating a convenient and interconnected transportation system.
See more: Map of Vietnam’s key industrial zones
Policies to attract FDI
Policies for development and incentives have been implemented to attract and enhance the effectiveness of promoting FDI investment in Vinh Phuc. These policies prioritize selective investment, focusing on quality, efficiency, technology, and environmental protection as priority criteria:
Infrastructure development policies for industrial parks
With a development vision for the period from 2021 to 2030, Vinh Phuc province will implement Infrastructure development policies in order to attract domestic and FDI investors to build factories in major industrial parks, some notable examples include:
- Planned to develop 27 industrial parks with a land area of approximately 6,200-7,000 hectares.
- The infrastructure planning for the Phuc Yen industrial park project (2023) with a total investment of nearly 2,000 billion Vietnamese Dong.
- Accelerating the progress of compensation and land clearance for 6 industrial parks including Son Loi, Song Lo I, Song Lo II, Tam Duong I – Area 2, Thai Hoa – Lien Son – Area 2 (Phase 1), and Nam Binh Xuyen.
- Completing the infrastructure of industrial parks and accelerating the progress of project implementation to create clean land for infrastructure investment and attract new investment projects.
- Focusing on investing in infrastructure up to the perimeter of industrial parks boundaries.
Human resource development policies
The province also places special emphasis on training a high-quality and skilled workforce to meet the needs of businesses when building factories in Vinh Phuc.
- To promote high-quality vocational training, Vinh Phuc province is actively collaborating with both local and external businesses to organize training programs that meet the demands of the industry. With a vision towards 2025, Vinh Phuc aims to achieve a labor training rate of 82%, of which 40% will receive certificates or diplomas
- The quality of vocational education is being enhanced, and the scale of training is being expanded, focusing on key economic sectors and important fields within the province.. As of May 2023, there are 33 vocational education institutions in the province with nearly 2,000 staff, teachers, and instructors. In 2022, the employment rate of graduates in their trained field exceeds 80%, with the key professions reaching over 90%.
- Enhancing the management, inspection, and monitoring of vocational education institutions and businesses within the province
- Providing cost support and financial assistance to address employment issues for workers; Providing support in addressing labor-related issues for businesses, such as training and labor recruitment
Encouragement of investment policies.
According to Decision No. 822/QD-UBND, the province has approved the Project to attract investment in building factories in Vinh Phuc province:
- Attracting additional investment capital from the FDI sector, ranging from 2.0 to 2.5 billion USD.
- Supporting businesses in accessing land in the fastest possible time in accordance with the provisions of the law.
- Supporting essential input conditions for business production and operation.
- Implementing the issuance of new investment certificates for 6 FDI projects with a total registered capital of 65.21 million USD and carrying out procedures for increasing investment capital for 11 projects, including 10 FDI projects.
In the second quarter of 2023, Vinh Phuc is projected to attract an additional 3-5 FDI projects with a registered capital of 60-70 million USD, along with 2-3 domestic projects with a registered capital of approximately 500-700 billion Vietnamese dong
List of industrial parks in Vinh Phuc province
Vinh Phuc has been approved by the Prime Minister for the planning of 20 large industrial parks in the province as part of the industrial development plan until 2020 and the vision towards 2030.
Kim Hoa Industrial Park
Main industries: manufacturing construction materials; manufacturing and repairing motorcycles and equipment; processing industrial and food products; manufacturing and processing mechanical products, machinery, equipment, and steel; and other non-polluting industries.
Location: Phuc Yen town, adjacent to National Highway 2A, 10km from Noi Bai International Airport, 35 km from the center of Hanoi, and 152 km from Cai Lan Port (Quang Ninh); located near the Hanoi – Lao Cai railway line.
Scale: 105 hectares
Khai Quang Industrial Park
Main industries: precision engineering and manufacturing; electronics and refrigeration production; manufacturing electronic and refrigeration equipment; manufacturing automotive and motorcycle parts; manufacturing metal and non-metallic molds..
Location: Vinh Yen city, Vinh Phuc province.
Scale: 221.46 hectares.
Binh Xuyen I Industrial Park
Main industries: manufacturing automotive and motorcycle parts; electrical equipment production; chemical and construction material manufacturing; high-tech investment projects with low environmental impact.
Location: Binh Xuyen district, Vinh Phuc province.
Scale: 287 hectares.
Binh Xuyen II Industrial Park
Main industries include: mobile phone manufacturing, electronic components, liquid crystal displays, electronic audio equipment; semiconductor and high-tech electronic component production; software product manufacturing; electronic product manufacturing.
Location: Binh Xuyen district, Vinh Phuc province.
Scale: 481.1 hectares.
The construction project of the third GS Vietnam Battery Plant, with DELCO as the Design – Build contractor in Binh Xuyen Industrial Park – Vinh Phuc province.
Ba Thien I Industrial Park
Main industries: electronics industry; mechanical engineering and manufacturing; consumer goods manufacturing; building materials, chemicals, pharmaceuticals, and logistics.
Location: Ba Hien commune and Thien Ke commune, Binh Xuyen district, Vinh Phuc province.
Scale: 327 hectares.
Ba Thien II Industrial Park
Main industries: light industry; high-tech industry; telecommunications and electronic components; assembly and production of automotive and motorcycle parts; logistics and other supporting industries; industrial equipment manufacturing.
Location: Thien Ke, Ba Hien, and Trung My communes, Binh Xuyen district, Vinh Phuc province.
Scale: 308.83 hectares.
Son Loi Industrial Park
Main industries: mechanical engineering, manufacturing of agricultural mechanization equipment and spare parts, machinery manufacturing, electrical and electronic industries, rubber, cosmetics, chemicals, packaging production, sports equipment,..
Location: Son Loi, Tam Hop, Ba Hien communes, Huong Canh town, Binh Xuyen district, Vinh Phuc province.
Scale: 264.52 hectares.
Chan Hung Industrial Park
Main industries: production of construction materials; mechanical assembly; power electronics; textile; processing agricultural products, forest products, food and other industries
Location: Chan Hung commune, Vinh Tuong district, adjacent to Vinh Yen city, Vinh Phuc province
Scale: 129.75 hectares
Phuc Yen Industrial Park
Main industries: equipment for the aviation industry, precision mechanical and optical equipment manufacturing, medical equipment, electrical and refrigeration equipment, automotive and motorcycle parts.
Location: Phuc Yen town, Vinh Phuc province
Scale: 127.74 hectares
Phuc Yen II Industrial Park
Main industries: equipment for the aviation industry, precision mechanical and optical equipment manufacturing, medical equipment, electrical and refrigeration equipment, automotive and motorcycle parts.
Location: Phuc Thang and Nam Viem wards, Phuc Yen City.
Scale: 111 hectares.
Thang Long Industrial Park (Vinh Phuc)
Main industries: non-polluting industries; high-tech projects such as engine production, supporting industries, production of spare parts and components for motorcycles; electronic accessories, and precision mechanical products.
Location: Binh Xuyen District, Vinh Phuc Province.
Scale: 213 hectares.
Vinh Tuong Industrial Park
Main industries: production of automotive and motorcycle parts; supporting industries; food and beverage; agricultural and food processing; textile and consumer goods.
Location: Vinh Tuong District, Vinh Phuc Province.
Scale: 200 hectares.
Tam Duong I Industrial Park
Main industries: precision mechanical engineering, manufacturing and assembly of agricultural machinery, tooling, electrical and electronic components, electrical and refrigeration equipment,..
Location: Huong Dao and Dao Tu Communes, Tam Duong District, Vinh Phuc Province.
Scale: 750 hectares.
Tam Duong II Industrial Park
Main industries: production and manufacturing of precision mechanical equipment, electrical equipment, agricultural machinery manufacturing; electronic and refrigeration equipment, automotive and motorcycle parts; production of metal and non-metallic molds.
Location: Kim Long Commune, Tam Duong District, and Hop Chau, Ho Son, Tam Quan Communes, Tam Dao District, Vinh Phuc Province.
Scale: 176.53 hectares.
Song Lo I Industrial Park
Main industries: high-tech industry; precision mechanical engineering; production of consumer goods, textile and garment leather and footwear; processing of agricultural and forestry products; other light industrial production with minimal environmental impact.
Location: Song Lo District, Vinh Phuc Province.
Scale: 177.7 hectares.
Song Lo II Industrial Park
Main industries: mechanical engineering; automobile production and assembly; production of components and parts for automobiles and motorcycles; production of precision mechanical components; electronic industry; electrical equipment industry; high-quality construction materials; plastic packaging and products.
Location: Dong Thinh and Yen Thach communes, Song Lo District, Vinh Phuc Province.
Scale: 165.66 hectares.
Lap Thach I Industrial Park
Main industries: production of consumer goods, food processing, construction materials, precision mechanical engineering, construction components, medical equipment, pharmaceuticals.
Location: Lap Thach town, Xuan Loi commune, Lap Thach district, Vinh Phuc province.
Scale: 128.46 hectares.
Lap Thach II Industrial Park
Main industries: production of construction materials, precision mechanical engineering, automotive and motorcycle parts, electronic and refrigeration equipment, machinery and equipment serving the construction industry, food, textile, and leather goods, medical equipment, pharmaceuticals.
Location: Lap Thach district, Vinh Phuc province.
Scale: 250 hectares.
Thai Hoa – Lien Son – Lien Hoa Industrial Park
Main industries: production of construction materials; precision mechanical engineering; consumer goods, textile and garment (excluding dyeing and bleaching), leather and footwear; agricultural and forestry processing.
Location: Lap Thach district, Vinh Phuc province, 25 km away from Vinh Yen city.
Scale: 578.43 hectares.
Nam Binh Xuyen Industrial Park
Main industries: software production, information technology, telecommunications and electronics, assembly of machinery components; mechanical production, household appliances, consumer goods; production of industrial aviation accessories.
Location: Binh Xuyen district, Vinh Phuc province.
Scale: 295 hectares.
Vinh Thinh Industrial Park
Vinh Thinh Industrial Park has been adjusted to be removed from the industrial park planning in Vinh Phuc and replaced by the development of an eco-tourism area with a scale of 250 hectares at the same location according to Decision No. 2323/QD-UBND.
Scale: 270 hectares
Location: Vinh Thinh Commune and An Tuong Commune, Vinh Tuong District, Vinh Phuc Province
The UTECH Vietnam project, with DELCO as the Design-Build contractor to build the factory in Binh Xuyen Industrial Park, Huong Canh, Vinh Phuc
See more: Vietnam continue being bright spot in FDI attraction in the midst of the COVID-19 pandemic
References: Nhip song Kinh doanh newspaper, Economic and Forecast magazine, Ministry of Industry and Trade newspaper, Capital Education newspaper, Government electronic newspaper.
