Bac Ninh converges all factors attracting foreign direct investment

Bac Ninh converges all factors attracting foreign direct investment

Having the smallest area in Vietnam – only 822.68 km2, Bac Ninh province is still known as the “FDI center” of the whole country, chosen by many investors to build a factory.

Favorable geographical location

Bac Ninh is located in the key economic triangle Hanoi – Hai Phong – Quang Ninh, adjacent to major economic centers of the North. It takes only 40 minutes to travel from Bac Ninh to Hanoi, 30 minutes to Noi Bai airport, and about 2 hours to Hai Phong port. Its favorable geographical location is very helpful in economic exchange and goods rotation; thus extremely suitable for large factory construction projects in Bac Ninh.

Bắc Ninh nằm trong tam giác kinh tế trọng điểm Hà Nội – Hải Phòng – Quảng Ninh

Bac Ninh is located in the key economic triangle Hanoi – Hai Phong – Quang Ninh

Flat terrain, stable geology

Many investors choose factory construction in Bac Ninh because of the flat terrain and stable geology here. The area of hills and mountains in Bac Ninh accounts for a very small proportion (0.53%) compared to the total natural area of the province. With relatively flat terrain, investors do not need to spend a lot of time and money on surveying, leveling, etc. before building the factory.
Soil geology is equally important. Compared with other factory projects that DELCO has built in industrial parks of Bac Giang, Hung Yen, Ha Nam, Vinh Phuc, Binh Duong, etc. Bac Ninh is one of the places where the ground has good bearing strength. The average depth of the pile foundation to reach a good soil layer is only from 16 to 22m underneath, so it does not cost much to press pile, build the factory foundation or improve and reinforce the foundation.

Read more: 3 reasons for investor to choose factory construction in Bac Ninh

Transportation network

Not only has a favorable geographical location, but Bac Ninh also has a development network of transportation and various types of traffic such as roads, railways, and waterways, which is convenient for inter-regional transport and export of goods to markets such as China, the USA, Europe, etc.

Bắc Ninh là một trong những tỉnh có nhiều khu công nghiệp nhất cả nước

For road traffic, there are National Highway 1A, Highway 18, and National Highway 38, connecting Bac Ninh with regional provinces such as Hanoi, Lang Son, Ha Long, Hai Phong, Hai Duong, etc. helping the logistics process, transporting goods in the region take place quickly and easily.

Giao thông Bắc Ninh
Bac Ninh traffic is also convenient for the import and export process to large export markets of Vietnam such as China, the USA, Europe, etc. Goods are shipped to China through the railway across Vietnam connecting Bac Ninh with the Lang Son border gate. Bac Ninh center is only 2 hours from Hai Phong seaport; as a result, maritime transport from Bac Ninh to the US and Europe is extremely convenient. Not to mention, Bac Ninh is located very close to Noi Bai airport – one of the two greatest and biggest locations for goods transporting in the country.

Cảng Hải Phòng

In addition, the river network connects to the northern river and seaport system, giving Bac Ninh an open terrain, ready for waterway exchanges – helping investors to transport large quantities of goods at a lower cost compared to aviation shipping.

FDI attraction policies

Bac Ninh leads in industrial production and is the leading locality in FDI attraction in the first 2 months of 2022. Bac Ninh has implemented many policies to attract investment in the direction of “2 less, 3 high, 5 ready”.

2 less are less use of labor and less use of land. Having the smallest natural land area among Vietnam localities, Bac Ninh prioritizes high-tech projects and projects that save labor and land.

3 high are high investment rate, high economic efficiency, and high technology. Bac Ninh focuses on project quality instead of quantity. The province encourages projects with high investment capital, bringing economic efficiency and containing a lot of technological intelligence. The purpose of this policy is to limit environmental pollution and contribute to economic growth.

5 ready are ready ground, human resources, reform, support, and anti-epidemic. Bac Ninh promotes site clearance for industrial zones and clusters, creating ground for investors; constantly improves the quality of human resources; reforms administrative procedures, and investment incentive policies and helps investors overcome the consequences of COVID-19. In the context of businesses being heavily affected by COVID-19, being willing to accompany investors to remove difficulties makes Bac Ninh likable enough to attract FDI.

Human resource development policies

On November 30, 2017, Bac Ninh issued Decision No. 680/QD-UBND approving the adjustment of the human resource development planning of Bac Ninh province from now to 2020, with orientation to 2030. The general objective of this policy is to develop human resources in Bac Ninh province in sufficient numbers, with high professional qualifications, proficiency in skills, and professional, dynamic, and creative manners. Although Bac Ninh has no advantage in terms of population compared to Hai Phong, Hai Duong, etc., it has high-quality human resources that can meet the human resource demands of investors.

Industrial park infrastructure development policies

Bac Ninh often proposes to invest in the infrastructure of industrial parks. Specifically, on March 12, 2021, Bac Ninh was approved with Decision No. 347/QD-TTG on the investment policy of Gia Binh II industrial park infrastructure construction and business investment project with total investment capital of nearly 4,000 billion VND; On March 26, 2021, Bac Ninh continued to be approved with Decision No. 451/QD-TTg for the project of construction and business infrastructure of Que Vo industrial park 3 – subdivision 2 with a total capital of nearly 2,780 billion VND. Que Vo 3 industrial park project to serve the production and business of the following industries: Assembly industry, electromechanical engineering, precision mechanics; High-grade building interior materials; Processing post-harvest products.

Khu công nghiệp Quế Võ 3 phục vụ sản xuất kinh doanh các ngành công nghiệp lắp ráp, cơ điện, cơ khí chính xác,...

Que Vo 3 Industrial Park serves manufacturing and business industries such as assembly, electromechanical, precision mechanics, etc.

Investment preferential policies

According to Clause 6, Article 1 of Decree No. 91/2014/ND-CP dated October 1, 2014, the Government amending and supplementing Clause 3, Article 16 of Decree No. 218/2013/ND-CP, except for industrial parks located in geographical areas with favorable socio-economic conditions, enterprises investing in leasing land and workshops in industrial parks in Bac Ninh province are entitled to the following investment incentive policies:

  • Exemption of company income tax for the first 2 years
  • Reducing corporate income tax to 50% for the next 4 years

List of industrial zones in Bac Ninh

Currently, the whole province of Bac Ninh has 15 concentrated industrial zones. Large corporations, especially ones with electronics production, heavy industrial production, etc. have invested in building factories in Bac Ninh, such as Samsung (Korea), Canon (Japan), Foxconn (Taiwan), ABB (Switzerland), Amkor Technology (Korea), Curious Seiki (Japan), etc.

Bản đồ phân bố Khu công nghiệp Bắc NinhBac Ninh is one of the provinces having the most industrial zones in Vietnam

1. Tien Son Industrial Park

Location: Located right between National Highway 1 and Provincial Road 295B, belonging to 2 districts Tien Du and Tu Son, Bac Ninh

Scale: 449 ha, divided into 2 stages of implementation

2. Yen Phong Industrial Park 1

Location: Long Chau commune, Yen Phong district, Bac Ninh province

Scale: 658 ha

3. Yen Phong Industrial Park 2

Location: National Highway 18, located in Hoa Tien, Tam Giang, Dong Tien and Town communes, Yen Phong and Bac Ninh districts

Scale: 1200 ha

4. Que Vo 1 Industrial Park

Location: Nam Son commune, Que Vo district, Bac Ninh

Scale: 640 ha

5. Que Vo 2 Industrial Park

Location: National Highway 18, Ngoc Xa Commune, Que Vo District, Bac Ninh

Scale: 270 ha

6. Que Vo 3 Industrial Park

Location: National Highway 18, Ngoc Xa Commune, Que Vo District, Bac Ninh

Scale: 530 ha

7. Dai Dong – Hoan Son Industrial Park

Location: stereoscopic intersection between Hanoi – Lang Son highway and provincial road 295, Tien Du district, Bac Ninh

Scale: 400 ha

8. Nam Son Industrial Park – Hap Linh

Location: Nam Son Ward, Bac Ninh City and Yen Gia Commune, Que Vo District, Bac Ninh

Scale: 1000 ha

9. Hanaka Industrial Park

Location: Located close to National Highway 1A, Dong Nguyen Ward, Tu Son Town, Bac Ninh

Scale: 74 ha

10. Gia Binh Industrial Park

Location: Dai Bai commune, Gia Binh district, Bac Ninh

Scale: 250 ha

11. Thuan Thanh Industrial Park 1

Location: Located in communes of Nghia Dao, Tram Lo and Ninh Xa, Thuan Thanh district, Bac Ninh

Scale: 250 ha

12. Thuan Thanh Industrial Park 2

Location: Highway 38, located close to Ho town, Thuan Thanh district, Bac Ninh

Scale: 250 ha

13. Thuan Thanh Industrial Park 3

Location: Located in the communes of Thanh Khuong, Dai Dong Thanh, Song Ho, Gia Dong, Dinh To and Hoai Thuong of Thuan Thanh district, Bac Ninh

Scale: 300 ha

14. Vietnam – Singapore Industrial Park – Bac Ninh

Location: Huu Nghi Boulevard, Phu Chan commune, Tu Son district, Bac Ninh province

Scale: 500 ha

15. Gia Binh Industrial Park 2

Location: Located in Nhan Thang, Binh Duong, Thai Bao and Van Ninh communes, Gia Binh district, Bac Ninh province

Scale: 261.8 ha

Nhiều tập đoàn lớn trên thế giới chọn xây dựng nhà máy ở Bắc Ninh 

Many large corporations around the world choose to build factories in Bac Ninh

DELCO has consulted, designed, and built many factories in Bac Ninh such as Smart Factory Power Plus Technology (Que Vo IP 3), Curious Seiki 1&2 Factory (Tien Son Industrial Park), Akebono Kasei Factory (Tien Industrial Park), etc.

Therefore, DELCO understands the information from investment procedures, investment incentives, regulations of the Management Board of industrial zones in Bac Ninh province, etc. to geological, environmental, and infrastructure conditions, etc.

Thanks to that knowledge and experience, DELCO can effectively support and advise investors in every stage of factory construction in Bac Ninh, from research, survey, design-build factory construction to MEP construction.

Source: Bac Ninh Province Portal, Vietnamplus, VOV Online Newspaper, Bac Ninh Online Newspaper, etc.

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