Attracting investment to build factories in Quang Ninh: Economic Potential and Incentive Policies for FDI Enterprises

Quang Ninh is one of the leading provinces in terms of speed of development and comprehensive, modern socio-economic infrastructure system. It is also the most important trading gateway between Vietnam, China and ASEAN. Due to its prime location, this is a destination that attracts many FDI investors to build factories in major industrial parks in Quang Ninh.

Economic Development Potential of Quang Ninh

Quang Ninh is located within the economic triangle of Hanoi – Hai Phong – Quang Ninh, which is one of the two largest economic triangles in Vietnam.

quang ninh map ban do 2023

– Prime Location: Quảng Ninh shares borders with Hai Duong, Hai Phong, Bac Giang, Lang Son, and is only a 3-hour drive from Hanoi,.. This enhances Quang Ninh’s connectivity and attracts commercial activities, transportation of goods and services, as well as economic cooperation with neighboring provinces. The location also easily attracts the labor from northern provinces, providing a rich workforce to serve FDI investors when building factories in major industrial parks in Quang Ninh province. Additionally, Quang Ninh is the only province that shares land, sea, and air borders with China, offering favorable conditions for international trade and import-export goods.

– Developed Infrastructure: Quang Ninh is currently leading in terms of development and completion of a synchronized and modern economic-social infrastructure system: Including strategic transportation infrastructure, information technology and telecommunications infrastructure, airports, seaports and port services, logistics infrastructure, and infrastructure in industrial parks and economic zones. According to reports from the Quang Ninh Economic Zone Management Board, currently 100% industrial parks in the province have invested in good infrastructure, including centralized wastewater treatment systems that meet environmental standards. Quang Ninh is among the top provinces in the country in terms of the Provincial Competitiveness Index (PCI).

hinh 1 anh quang ninh

The outstanding advantages in infrastructure are the reasons why many investors choose Quang Ninh as the location to build factories.

– Transportation Infrastructure: With a focus on prioritizing transportation infrastructure, Quang Ninh has fully invested in Ha Long – Hai Phong expressways, Ha Long – Van Don Expressways, Van Don International Airport, Hon Gai International Passenger Port and a series of transportation infrastructure projects connecting seaports, industrial parks, and economic zones across the province.  Quang Ninh has also inaugurated the Van Don – Mong Cai expressway with nearly 13,000 billion VND (as of September 2022), which is the longest highway in Vietnam and connects to 3 international border gates of Lao Cai, Huu Nghi and Mong Cai. Additionally, it serves as a transshipment hub within the East Asia – Southeast Asia region, ASEAN – China, the “two corridors, one economic belt” cooperation between Vietnam and China, and the expanded regional cooperation in the Gulf of Tonkin, creating a strong driving force to promote the economy of the Northern Key Economic region and the Red River Delta region

In addition, Quang Ninh has 4 seaports: Cai Lan, Cua Ong, Van Gia, Mui Chua, Yen Hung wharf area… These seaports serve as crucial transportation infrastructure linking Quang Ninh with both domestic and international regions, significantly boosting trade activities and optimizing the logistics sector.

Policies to attract investment in building factories in Quang Ninh

To attract FDI into industrial zones in Quang Ninh, the province has made significant changes in implementing policies that are flexible and favorable to promote investment in the region.

Continuing to develop transportation infrastructure and planning additional key arterial roads:

In recent times, the province has implemented various measures to promote infrastructure development and transportation connectivity, ensuring convenience for investors in building factories in Quang Ninh:

chinh sach phat trien ha tang giao thong tieng anh

– Focusing on utilizing diverse resources to invest in modern and synchronized transportation infrastructure, aiming to connect economic zones, industrial parks, and economic centers across the region.

– Many roads have been completed, including the Ha Long – Hai Phong expressway to Dong Trieu town; road connection to Lang Son and Bac Giang, the coastal road Ha Long – Cam Pha connecting to Van Don; infrastructure such as border gates and border areas…

– Investing in Van Ninh – Mong Cai port and the construction of an air cargo route between Van Don Airport and Can Tho Airport, facilitating the fastest connection to the Mekong Delta region. This enhances the transportation of goods from the south to the north, serving investors when building factories in Quang Ninh.

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Developing a high-quality workforce

To develop a high-quality labor force to serve industrial parks in the area, Quang Ninh province has implemented a number of policies such as:

  • Expanding high-quality educational and vocational training institutions.
  • Implementing cooperative training programs with domestic and international universities to train a workforce with a desire to work in the province…
  • Allocating reasonable capital to increase the effectiveness of the labor force through training, ensuring the supply of high-quality human resources for investors when building factories in Quang Ninh.
  • Implementing the construction of housing for workers to serve industrial parks, ensuring that laborers have stable accommodation and a peaceful working environment.

hinh 2 nha may foxconn quang ninh

Foxconn factory in Dong Mai Industrial Park, Quang Ninh

In 2022, the province has a workforce of over 780,000 people, and the quality of the workforce has significantly improved. The proportion of trained laborers reaches over 85%, of which nearly 50% possess degrees and certificates.

Investment incentives

In order to enhance investment attraction in industrial parks, Quang Ninh Provincial People’s Committee has issued Decision No. 386/2012/QD-UBND, which stipulates policies to support investment in industrial parks within Quang Ninh province:

  •  Incentive policies such as land policies (land rental exemption, reduced land rental fees), income tax incentives (2-year tax exemption, 50% reduction in tax payment for the next 4 years for income generated from new investment projects in industrial parks, except for Cai Lan and Viet Hung Industrial Parks), import-export tax incentives (import tax exemption for raw materials, supplies; imported goods for processing, and export of processed products,..), support for land clearance costs, support for constructing wastewater treatment systems in industrial parks, support for businesses in implementing technology application in production and business; and credit support.
  • Secondary investors will also benefit from certain support policies when investing in building factories in Quang Ninh.
  • Creating the most favorable conditions regarding administrative procedures, land, and ensuring an open, favorable, equal, transparent investment & business environment.

hinh 3 foxconn kcn song khoai

Foxconn invested in building 2 new factories with more than 246 million USD in Quang Ninh province, Vietnam (in Song Khoai Industrial Park – Quang Yen coastal economic zone)

2023 summary, Quang Ninh province ranked 3rd in attracting FDI in Vietnam (after Ho Chi Minh City and Hanoi) with a total registered FDI capital of 3,110.57 million USD, increasing 31.3% compared to 2022. In the first 2 months of 2024, Quang Ninh continues to attract 471.12 million USD, an increase of 41.8% over the same period last year, promising to realize the goal of attracting 1 billion USD of FDI capital in the first quarter of this year.

List of Industrial Parks

danh sach kcn quang ninh vn 2024 en

1- Cai Lan Industrial Park

– Area: 78 hectares

– Location: Gieng Day and Bai Chay Ward, Ha Long City, Quang Ninh Province

– Anticipated investment-attracting industries: Heavy industries: Shipbuilding, construction materials manufacturing, metallurgy, chemicals, electricity, electronics, mechanics; Light industries: Food and beverage production, garment and footwear manufacturing; Services: Logistics, warehousing, commerce, etc.

2- Viet Hung Industrial Park

– Area: 301 hectares

– Location: Viet Hung Ward, Ha Long City, Quang Ninh Province

– Anticipated investment-attracting industries: Environmentally friendly automobile manufacturing and various types of clean industries that do not cause environmental pollution, along with supporting services for the operations of the industrial park.

3- Hai Yen Industrial Park

– Area: 182.42 hectares

– Location: Hai Yen Ward, Mong Cai City, Quang Ninh Province

– Anticipated investment-attracting industries: Industries that are non-polluting, including consumer goods manufacturing, textile and garment, machinery assembly, precision mechanics, agricultural and forestry processing, construction materials production, consumer goods manufacturing, and food processing.

4- Dong Mai Industrial Park

– Area: 167.86 hectares

– Location: Dong Mai Ward, Quang Yen Town, Quang Ninh Province

– Anticipated investment-attracting industries: High-tech applications, clean and environmentally friendly industries.

5- Hai Ha Seaport Industrial Park

– Area: 4,988 hectares (Phase 1: 660 hectares)

– Location: Located within the administrative boundaries of 5 communes: Quang Dien, Quang Phong, Phu Hai, Quang Trung, and Cai Chien, Hai Ha District, Quang Ninh Province

– Anticipated investment-attracting industries: Developing a diverse range of sectors, including heavy industries and light industries such as thermal power, mechanical engineering, textile and its supporting industries etc

6- Song Khoai Industrial Park

– Area: 714 hectares

– Location: Song Khoai, Dong Mai, Cong Hoa, Minh Thanh – Quang Yen Town, Quang Ninh Province

– Anticipated investment-attracting industries: Construction materials manufacturing, including cement production, bricks, stones, concrete, and other building materials.

7- Dam Nha Mac Industrial Park

– Area: 3,710 hectares

– Location: Quang Yen Town, Quang Ninh Province

– Anticipated investment-attracting industries: Industries related to the port, including port services, logistics, consumer goods industries, and seafood processing.

Bac Tien Phong Industrial Park (part of Dam Nha Mac Service Industrial Park)

– Area: 1,192 hectares

– Location: Quang Yen Town, Quang Ninh Province

Nam Tien Phong Industrial Park (part of Dam Nha Mac Service Industrial Park)

– Area: 487.4 hectares

– Location: Southern area of Tien Phong Commune, Quang Yen Town, Quang Ninh Province

Bach Dang Industrial Park (part of Dam Nha Mac Service Industrial Park)

– Area: 176.45 hectares

– Location: Lien Vi Commune, Quang Yen Town, Quang Ninh Province

8- Hoanh Bo Industrial Park

– Area: 681 hectares

– Location: Hoanh Bo Ward, Ha Long City, Quang Ninh Province

– Anticipated investment-attracting industries: Heavy industries: Shipbuilding, construction materials manufacturing, metallurgy, chemicals, electricity, electronics, mechanics; Light industries: Food and beverage production, garment and footwear manufacturing; Services: Logistics, warehousing, commerce, etc

9- Dong Trieu Industrial Park

– Area: 150 hectares

– Location: Hong Thai Dong Commune, Dong Trieu Town, Quang Ninh Province

– Anticipated investment-attracting industries: Production of construction materials; agricultural and seafood processing; manufacturing electronic components; logistics; warehousing; commerce, etc.

10- Cam Pha Industrial Park 1

– Area: 400 hectares

– Location: Mong Duong Ward, Cam Pha City, Quang Ninh Province

– Anticipated investment-attracting industries: Mechanical engineering for manufacturing and repairing equipment in the coal industry; mechanical engineering for manufacturing equipment serving the construction industry.

11- Tien Yen Industrial Park

– Area: 150 hectares

– Location: Dong Ngu Commune, Tien Yen District, Quang Ninh Province

– Anticipated investment-attracting industries: Agricultural and seafood processing; construction materials; electricity, electronics; warehousing; commerce; logistics.

12- Bac Cai Bau Industrial Park

– Area: 550 hectares

– Location: Van Don district, located in Van Don coastal economic zone

13- Bac San Bay Industrial Park

– Area: 450 hectares

– Location: Van Don district, located in Van Don coastal economic zone

14- Van Ninh industrial and logistics service Park

– Area: 2000 hectares

– Location: Mong Cai City, located in Mong Cai Border Gate Economic Zone

15- Hai Ha Industrial Park 1

– Area: 713.8 hectares

– Location: Hai Ha district, located in Mong Cai Border Gate Economic Zone

16- Hai Ha Industrial Park 2

– Area: 743.5 hectares

– Location: Hai Ha district, located in Mong Cai Border Gate Economic Zone

As the design-build contractor for numerous major projects in almost all provinces and cities in the northern region so that DELCO is confident in consulting and designing for all stages of projects when investors intend to build factories in Quang Ninh.

References: Quang Ninh Provincial Industrial Park Management Board, Quang Ninh Provincial Promotion and Investment Support Board, Investment Newspaper, Quang Ninh Newspaper, Nhan Dan Newspaper, etc.

See more: Quang Ninh expects FDI inflows of nearly 1.7 billion USD

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