With the trend of expanding industrial zones to the neighboring provinces, more and more investors and businesses choose to build factories in Bac Giang for the following reasons:
Favorable geographical location
Bac Giang is the most populated province and has the top economic scale in the Northern midland and mountainous, only 50km far from the center of Hanoi, with geographical location:
The East borders Quang Ninh province
The West borders Thai Nguyen province and Hanoi capital
The North borders Lang Son province
The South borders the provinces of Hai Duong and Bac Ninh
Bac Giang is located on the economic corridor of Nanning (China) – Lang Son – Hanoi – Hai Phong, adjacent to key economic zones and raw material areas, convenient for logistics, import and export activities of raw materials. raw materials, goods, and products.
Features of regional planning
Bac Giang has planned and enabled 6 industrial parks with a total area of 1,462 ha, and 38 industrial clusters with an area of over 1208 ha, of which 5 industrial parks are attracting secondary investors. On February 23, 2021, the government allowed the establishment of 3 more industrial zones in Yen Dung, Luc Nam, and Lang Giang and expanded 3 industrial zones in Quang Chau, Hoa Phu, and Viet Han with a total area of more than 1,100 hectares.
Transportation Network
The transport network of Bac Giang province includes roads, waterways, and railways, convenient for back-and-forth traffic and for transporting goods and materials inside and outside the province.
Roads include National Highway 1, National Highway 31, National Highway 37, National Highway 279, Hanoi – Bac Giang Expressway, Bac Giang – Lang Son Expressway, West Yen Tu Road – Hai Duong, Quang Ninh and the Ring Road 5 Hanoi.
Bac Giang province has 3 main waterways, including Thuong River, Cau River, and Luc Nam River with a total length of about 354 km.
In addition to national highways, provincial roads, and waterways, Bac Giang also has 3 railway lines run through, including:
The route Hanoi – Dong Dang is 167 km long, the section through Bac Giang is 40 km long;
The Kep – Ha Long route is 106 km long, 32.77 km long through Bac Giang province;
The Kep – Luu Xa route is 57 km long, of which 23 km runs through Bac Giang;
The station system is evenly distributed throughout the lines: Sen Ho, Bac Giang, Pho Trang, Kep, Mo Trang, Bao Son, etc. These stations are capable of transporting passengers, and loading and unloading goods in big volumes.
Abundant and high-quality labor resources
Over the years, the labor structure of the province has developed in a positive direction. In 2020, labor in industry-construction accounted for 37.6%, that of services accounted for 24%, and that of agriculture-forestry-fishery accounted for 38.4%; the rate of trained workers will increase, reaching 70% by 2020. Ready to provide an abundant and highly skilled labor force to industrial zones in the province.
Bac Giang currently has 1 university, 3 colleges, 4 vocational education institutions and 41 vocational education institutions to meet the quality of vocational training for workers.
Investment incentives, focusing on high-tech and environmentally friendly production
According to the provisions of Section 1, Article 15 of the Law on Investment 2020, applied from January 1, 2021, when investing in projects in Luc Ngan, Luc Nam, Yen The, Hiep Hoa, etc (Bac Giang) investors will be entitled with the following investment incentives:
Incentives on corporate income tax lower than the normal tax rate (for a definite term or the entire life of the investment project)
Tax exemption, tax reduction, and other incentives under the Law on Corporate Income Tax
Tax exemption for goods imported to create fixed assets; raw materials, supplies, and components imported for production
Exemption and reduction of land use tax, land rent, and land use tax
See more: Korean enterprises lead in the number of investment projects in Bac Giang
Other factors related to FDI investment
Infrastructure in Bac Giang
Bac Giang started construction of many infrastructure projects in the second quarter of 2022, including infrastructure construction of industrial parks, development of transport infrastructure project Road connecting National Highway 37 – National Highway 17 – Vo Nhai (Thai Nguyen) (2021) -2024); Construction project of Dong Viet bridge and the road leading to the bridge, Yen Dung district, Bac Giang province (2022-2025); Infrastructure project, warehouse and international logistics center in Bac Giang city, etc.
High-ranked socioeconomics among the countries
In the first 3 months of 2022, Bac Giang province has attracted 11 investment projects with a total capital of 310.52 million USD equivalent investment capital, equaling 44.45% over the same period. The Provincial Competitiveness Index (PCI) and the Public Administration and Governance Performance Index (PAPI) have had many positive changes, rising to be among the good groups in the country.
Administrative procedures
Bac Giang province continues to review to simplify administrative procedures and costs for businesses; prioritize investment in the infrastructure of industrial zones and clusters; reform administrative procedures towards ensuring publicity and transparency with the “one-stop-shop” mechanism.
List of industrial parks in Bac Giang
Yen Lu Industrial Park – 377 ha
Investing in the construction and infrastructure business of Yen Lu Industrial Park according to Decision No. 2242/QD-TTG signed by Deputy Prime Minister Le Van Thanh on December 31, 2021.
Investor: Cappella Real Estate JSC
Location: located on National Highway 17, convenient for traffic among seaports, airports, and major city centers such as Hanoi, and Bac Ninh via National Highway 1A and National Highway 18.
Yen Son Industrial Park – Bac Lung – 300 hectares
Yen Son – Bac Lung industrial park in Luc Nam district, Bac Giang province is a new industrial park established in 2021 under Decision No. 712/QD-UBND of the People’s Committee of Bac Giang province. In the coming years, this will be a bright investment destination for investors.
Convenient traffic location:
Such an industrial park is located right next to National Highway 37, National Highway 18, and National Highway 1A, flexibly and quickly connecting to localities and other economic regions in the region, so Bac Giang exploits its full potential in the field of industrial production and supportive services.
See more: Efforts to improve the investment environment to help Bac Giang be the top FDI attraction in Vietnam
Viet Han Industrial Park – 197.31 ha
The zoning planning of Viet Han Industrial Park, scale 1/2000 has been approved in Decision No. 693/QD-UBND dated 14/7/2021. On February 14, 2022, the People’s Committee of Bac Giang province issued Decision No. 161/QD-UBND approving the detailed planning of Viet Han Industrial Park at a scale of 1/500.
Investor: Thien An Investment Joint Stock Company
Location: Tang Tien, Hong Thai, and Neh town.
Total investment: more than 199 billion VND
Viet Han Industrial Park mainly attracts the following industries:
- Mechanical engineering industry
- Exact mechanics
- Manufacture of electrical equipment
- Medical device manufacturing
- Production of consumer goods
- Environmentally-friendly light industries
Tan Hung Industrial Park – 105.3 ha
Investor: Lideco 1 Joint Stock Company (Hanoi)
Location: near Bac Giang – Lang Son highway
- 65km away from Hanoi capital – taking about 50 minutes to travel by car;
- 60 km away from Noi Bai International Airport – taking about 45 minutes to travel by car;
- 90km away from Lang Son;
- 110 km away from Cai Lan international port and Hai Phong international port;
- 100 km away from Mong Cai border gate.
With an average planned industrial land fund of 105.3 hectares, Tan Hung Industrial Park is oriented by Bac Giang province as an industrial park focusing on developing high-tech and eco-friendly industries, so it will be synchronously built with modern infrastructure to meet development goals in the future.
Quang Chau Industrial Park – 426 ha
Quang Chau Industrial Park was established under the Prime Minister’s Decision No. 637/QDTTg dated 25/4/2006. The transportation system is relatively convenient in terms of waterways, roads, and railways.
Investor: Saigon – Bac Giang Industrial Park Joint Stock Company
Location: near National Highway 1A and Cau River
Scale: 426 ha, with an urban development scale of 150 ha.
Van Trung Industrial Park – 350 hectares
The project was established in 2007 and divided into 2 phases with a total area of 425 ha. With a large area, modern factories, and modern infrastructure, the industrial park since its establishment has brought the best working and production conditions to domestic and foreign companies.
Investor: Fujang – Hong Hai Science and Technology Group – Taiwan
Location: in 2 districts of Viet Yen and Yen Dung, Bac Giang province. The industrial park is located on National Highway 1A going to the Vietnam – China border and the Hanoi highway
Hoa Phu Industrial Park – 207.45 hectares
Hoa Phu Industrial Park was established under the Decision No. 1437/QD-UBND of the People’s Committee of Bac Giang province on September 9, 2016. It has a planned area of over 400 hectares, of which phase 1 is 207 hectares (phase 2 is 200 hectares).
Investor: Hoa Phu Invest Co., Ltd
Total investment: 1,933 billion VND
Location: adjacent to provincial road 295, near Song Cau
Song Khe – Noi Hoang Industrial Park (154.6 ha)
Song Khe – Noi Hoang Industrial Park was established in 2007, located next to the new National Highway 1A Hanoi – Lang Son. It is 5km away from Bac Giang city, 45km from Hanoi capital, 45km from Noi Bai international airport, 115km from Hai Phong port, and 115km from Huu Nghi Quan border gate.
Investor: Fuji Bac Giang Development Joint Stock Company and Bac Giang Industrial Park Infrastructure Development Company
Location: located in Bac Giang city and Yen Dung district
Scale: total area 154.6 hectares (in 2019) and can be up to 300 hectares
Dinh Tram Industrial Park – 127 ha
Investor: Bac Giang Industrial Park Infrastructure Development Company
Location: at the intersection between the old National Highway 1A and the new 1A, on the territory of 2 communes Hoang Ninh and Hong Thai, Yen Viet district.
Scale: The initially planned scale is 158 hectares, then by 2020 it will be reduced to 127 hectares
See more: Priority fields to attract investment to factory construction in Bac Giang
In the future, Bac Giang will have 27 more industrial zones with a total area of about 9,000 ha and 69 industrial zones with an area of nearly 3,000 ha, concentrated in the districts of Yen Dung, Viet Yen, Hiep Hoa, and Lang Giang, etc.
DELCO has experience in consulting, designing, and building many factories in Bac Giang such as HAEM Vina factory (Song Khe Industrial Park – Noi Hoang), and INOUE factory (Quang Chau Industrial Park), Hashimoto Seimitsu Vietnam factory (Dinh Tram Industrial Park). As a result, DELCO has a lot of knowledge and practical experience in investment procedures, factory construction, investment incentives, regulations of the Management Board of Industrial Parks, etc. to effectively advise and support investors in all stages of the factory construction projects in Bac Giang.
