In 2023, Thai Binh attracted nearly USD 3 billion in FDI, ranking 5th out of 63 provinces and cities nationwide. It has become a new and highly potential destination for foreign investors thanks to attractive development policies, incentives, and the abundant land available in Thai Binh’s industrial parks.
Thai Binh’s economy development advantages
In 2023, Thai Binh attracted nearly USD 3 billion in FDI, almost 4.4 times higher than in 2022, ranking 5th out of 63 provinces and cities nationwide. This has drawn many foreign investors to build factories in Thai Binh’s industrial parks. Unlike provinces with high occupancy rates in industrial parks such as Bac Ninh, Bac Giang, and Hai Phong… Thai Binh has the advantage of available land for industrial development. The occupancy rate of industrial parks is still low and competitive industrial land prices help businesses optimize investment costs effectively.
In addition, Thai Binh is a developing province with a large investment fund for infrastructure. Many new industrial parks are being built in Thai Binh and the inter-provincial transportation system is expanding, facilitating trade between provinces. To date, the province has attracted many key projects such as VSIP Thai Binh, Pegavision Vietnam factory and especially the LNG Gas Power Plant project with a total investment of up to USD 1.99 billion.
Thai Binh approves the investment policy for LNG thermal power plant with a capacity of 1,500 MW – Illustration.
Economic development potential in Thai Binh
Location adjacent to the sea, with a modern transportation system gradually being completed
Thai Binh is a province within the economic growth triangle of Hanoi – Hai Phong – Quang Ninh. It boasts a 52 km long coastline with five major river mouths, along with National Highways 37, 37B, and 39, Provincial Road 456, and the coastal road. These routes help shorten the travel time and distance from the coastal area of Thai Binh to deep-water seaports such as Dinh Vu and Lach Huyen, Van Don Airport, and Mong Cai Border Gate.
In addition, for the period 2021 – 2030, vision towards 2050, Thai Binh will develop three expressways: Ninh Binh – Hai Phong Expressway (CT.08), Hanoi Ring Road 5 (CT.39), and CT.16 to connect Thai Binh Economic Zone with Thai Binh city and the northwest economic region of Hanoi. These expressways will make transportation and trade more convenient. Additionally, Thai Binh has favorable conditions for land reclamation to develop eco-industrial parks and environmentally friendly industrial zones, aligning with the current green industry trend.
The coastal road connects inter-regional trade between Thai Binh and other coastal provinces.
Well-built industrial infrastructure
Currently, Thai Binh has 10 industrial parks attracting many foreign investors. Notably, the Thai Binh Economic Zone was established by decision of the Prime Minister, covering an area of 30,583 hectares. The largest industrial park in Thai Binh, Lien Ha Thai Industrial Park, is under development and has already attracted several major investment projects. The Thai Binh Special Economic Zone has a favorable geographical location, being approximately 35 km from Cat Bi International Airport (Hai Phong) and about 50 km from Lach Huyen International Seaport.
Additionally, during the period 2021 – 2025, Thai Binh is expected to mobilize about VND 237 trillion and approximately VND 577 trillion during the period 2026 – 2030 to invest in technical infrastructure for major projects. Furthermore, Thai Binh will construct three new port areas: Diem Dien Port Area, Tra Ly Port Area and Ba Lat Port Area. The province also plans to develop coastal wind power in areas adjacent to Con Den Tourist Area and near the mouth of the Tra Ly River.
Lien Ha Thai Industrial Park within Thai Binh Economic Zone (Rendering Image)
Mineral potential
Thai Binh has abundant sources of electricity, coal, and natural gas, along with plentiful mineral water, natural hot water, and sand for construction materials. Tien Hai, in particular, boasts significant resources such as the Tien Hai gas field, which has been exploited since 1986 to support the production of glass, porcelain, tiles, and white cement in the Tien Hai industrial park. The Tien Hai mineral water deposit, with a static reserve of about 12 million m³, has been exploited since 1992 and is well-known in the market through brands like Vital mineral water and Tien Hai mineral water. With these available mineral resources, investors building factories in Thai Binh’s industrial parks can utilize local materials such as sand and gas, helping to reduce transportation and construction costs, as well as operational expenses.
Thai Binh gas field drilling rig
Young and abundant labor force
Thai Binh is one of the provinces with a young and abundant labor force, with a population of nearly 1.9 million people, of which over 1.1 million are of working age. In recent years, the province has focused on investing in education and vocational training for workers to meet the qualification requirements of investors. The province currently has 25 vocational education institutions, including 3 colleges. The percentage of trained laborers with degrees and certificates is about 25%, and the rate of vocationally trained laborers supplied to industrial parks is about 61%.
See more: 5 Characteristics of Vietnamese Workers in the Workplace
Policies and incentives to attract investment
Investment attraction policies
To attract investors to build factories in Thai Binh, the province has introduced specific development policies such as promoting administrative reform, simplifying administrative procedures, and implementing a one-stop mechanism to address difficulties and create favorable conditions for investment. Thai Binh has developed policies to promote the development of vocational education institutions and has enhanced various forms of training according to the needs of businesses to improve workers’ skills and meet the current labor market demands. Additionally, the province is implementing digital transformation, vigorously developing the information technology sector, and focusing on investing in provincial infrastructure and IT services.
Investment Incentives for Industrial Parks in Thai Binh
In addition to favorable policies, investors building factories in industrial parks in Thai Binh are entitled to several tax incentives such as:
- Applying a 20% corporate income tax rate for 10 years,
- Exemption from corporate income tax for up to 2 years,
- A 50% reduction in payable tax for the next 4 years as per state regulations.
Additionally, when investing in the Thai Binh Economic Zone, investors can enjoy other specific incentives such as:
- Applying a land rental rate of 0.6% for investment projects in industries encouraged by the province.
- Receiving support for site leveling within 5 years, with support ranging from VND 35,000 to 80,000 per square meter of the total leveled area, depending on the business sector.
- Receiving support for 50% of the investment cost for constructing a centralized wastewater treatment system, according to Decision No. 13/2020/QĐ-UBND of Thai Binh province.
See more: Procedures for establishing a company for foreign investors
List of industrial parks in Thai Binh
Thai Binh currently has 10 industrial parks, including 2 newly established ones and 8 that have been or are being developed, with a total planned area of 1,930 hectares and an average occupancy rate of over 53%. Among these, 3 industrial parks have completed infrastructure development and have a 100% occupancy rate: Phuc Khanh Industrial Park, Nguyen Duc Canh Industrial Park, and Gia Le Industrial Park. The remaining 5 industrial parks are still under infrastructure development: Song Tra Industrial Park, Cau Nghin Industrial Park, Tien Hai Industrial Park, Lien Ha Thai Industrial Park, and Thaco – Thai Binh Industrial Park.
Operating Industrial Parks
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Song Tra Industrial Park
- Area: 150.48 hectares
- Location: Vu Thu District and Thai Binh City
- Operation period: 50 years (2012 2062)
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Tien Hai Industrial Park
- Area: 466 hectares
- Location: Tien Hai District, Thai Binh Province
- Operation period: 50 years (2017 2067)
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Cau Nghin Industrial Park
- Area: 211.52 hectares
- Location: Quynh Phu District, Thai Binh Province
- Operation period: 50 years (2012 2062)
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Nguyen Duc Canh Industrial Park
- Area: 75.06 hectares
- Location: Thai Binh City, Thai Binh Province
- Operation period: 50 years (2004 2054)
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Gia Le Industrial Park
- Area: 84.7 hectares
- Location: Dong Hung District, Thai Binh Province
- Operation period: 50 years (2011 2061)
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Phuc Khanh Industrial Park
- Area: 159.03 hectares
- Location: Thai Binh City, Thai Binh Province
- Operation period: 50 years (2002 2052)
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Lien Ha Thai Industrial Park
- Area: 588.84 hectares
- Location: Thai Thuy District, Thai Binh Province
- Operation period: 50 years (2021 2071)
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Thaco Thai Binh Industrial Park
- Area: 194.36 hectares
- Location: Quynh Phu District, Thai Binh Province
Newly Established Industrial Parks
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Hai Long Industrial Park
Area: 296.97 hectares
Location: Tien Hai District, Thai Binh Province
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VSIP Thai Binh Industrial Park
Area: 333.4 hectares
Location: Thai Thuy District, Thai Binh Province
