Reasons large investors choose to build factories in Nghe An

Leading global corporations such as Luxshare-ICT, Goertek Vina, Everwin Precision Vietnam, and Foxconn have chosen to build factories in Nghe An due to its developed industrial infrastructure, competitive labor costs…

Nghe An ranks first for FDI attraction in the North Central region

In 2023, Nghe An recorded nearly USD 1.6 billion in FDI, making it the leading province in the North Central region and in the top 10 for foreign investment attraction in Vietnam. This trend continued into the first half of 2024, with FDI in Nghe An reaching over VND 12,000 billion, a fivefold increase compared to the same period last year.

Notably, Nghe An has attracted many of the world’s top electronics corporations, including Luxshare-ICT, Goertek Vina, Everwin Precision Vietnam, and Foxconn—Apple’s partner. In 2024, Nghe An also approved 39 new projects, including a significant one from RUNERGY PV Technology Co. Ltd. with an investment of over VND 7,100 billion.

Advantages for investors building factories in Nghe An

Large Industrial Land Supply

With the largest land area in the country, Nghe An has numerous industrial parks and clusters with extensive land resources. This abundance results in significantly lower industrial land prices compared to provinces with high occupancy rates like Hanoi, Hai Phong, Quang Ninh. In addition, the planned land allocation for economic zones in the province has been substantially increased from 20,776 hectares to 79,731 hectares—3.8 times higher than before. By 2025, the province plans to ensure the availability of around 1,500 hectares of clean land to attract FDI investors to build factories in Nghe An.

Low labor costs

Nghe An is the fourth most populous province in Vietnam, with a population of over 3.4 million people, including more than 1.6 million in the working-age group. This provides a large labor resource for businesses, especially for labor-intensive industries like textiles, and footwear. Additionally, the average wage for workers in Nghe An is currently VND 6.3 million per person per month, lower than the national average of VND 8.2 million, allowing FDI investors to save on labor costs and enhance their competitive advantage in the market.

Developed Transport and Logistics Infrastructure

Transport and logistics infrastructure in Nghe An has been invested in and developed strongly, creating a great advantage in attracting FDI investors. On the road network, Nghe An has 16 national highways, including major routes such as National Highway 1A, National Highway 7, and National Highway 48, along with 39 provincial roads, forming a comprehensive network that connects areas within and beyond the province. Additionally, Nghe An also features the 94 km North-South railway and an 82 km coastline, which includes the deep-water Dong Hoi Port and Cua Lo Port, capable of handling ships with a capacity of up to 30,000 tons, meeting the freight transport needs of businesses. Furthermore, Vinh International Airport offers direct flights to Hanoi, Ho Chi Minh City, Da Nang, as well as international routes to destinations such as Thailand, Singapore, and Japan, facilitating fast and convenient travel for businesses.

Modern and Well-Planned Industrial Park Infrastructure

Nghe An has attracted reputable and experienced industrial park developers such as VSIP, WHA, and Hoang Thinh Dat…, leading to the creation of large, well-planned industrial parks that meet international infrastructure standards. In 2024, the province plans to complete and hand over seven key infrastructure projects, including Road N2, Road N5-1, and the drainage canal along Road N5, enhancing the operational efficiency of the industrial parks and meeting the production needs of investors.

FDI attraction policies and incentives

FDI attraction policies

Nghe An has applied numerous administrative reforms, reducing the administrative procedure time, and providing maximum convenience for investors. The establishment of the Southeast Economic Zone has created a more favorable mechanism for investors in handling administrative procedures. Additionally, the province actively promotes investment through frequent investment promotion activities and supports the branding of businesses via provincial media channels.

Nghe An also prioritizes workforce training support, with an educational system that includes six universities, eleven colleges, and seventy vocational training centers. Each year, the province supplies the labor market with around 45,000 workers, over 65% of whom are trained labors, meeting the needs of FDI enterprises establishing factories in the area.

FDI Incentives in Nghe An

In addition to the general FDI incentives of Vietnam, FDI enterprises building factories in Nghe An are eligible for several additional incentives:

• Support on investment fee: The provincial budget will cover up to 50% of the costs for carrying out investment procedures with a maximum support of VND 200 million per project.
• Support on sand leveling fee: The provincial budget will support 50% of the land leveling costs according to the regulations set out in Resolution 05/2021/NQ-HĐND.
  
• Support on infrastructure development: The provincial budget will assist in the construction of roads and drainage systems up to the project’s perimeter.
• Support on labor training: The provincial budget will provide a one-time training cost support of VND 2,000,000 per worker as per regulations.

List of Industrial Parks in Nghe An – Updated 2024

Operating Industrial Parks

1. Nam Cam Industrial Park

• Area: 371.15 hectares
• Location: Nghi Loc District, Nghe An Province.
• Occupancy Rate: 100%
• Encouraged Investment Sectors:

• Zone A: Automobile assembly, machine tools, manufacturing, metallurgy, steel rolling, agricultural and food processing, consumer goods, and other export products…
• Zone B: Food processing, wood products, fertilizers, agricultural machinery repair, beer, wine, and various beverages.
• Zone C: Chemical industry, fertilizers, mineral processing, mechanical engineering, and building materials production.

2. Dong Hoi Industrial Park

• Area: 1,436 hectares
• Location: Hoang Mai Town, Nghe An Province
• Encouraged Investment Sectors: Multi-sector, including thermal power industry, thermal power supporting industries, cement industry, shipbuilding, and mechanical repair industry.

3. Hoang Mai I Industrial Park

• Area: 289.67 hectares
• Location: Hoang Mai Town – Nghe An Province
• Occupancy Rate: 86%
• Encouraged Investment Sectors: Mechanical assembly, processing of agricultural, forestry, and mineral products, mechanical manufacturing, electronics, building materials, precision engineering, and production of spare parts for various industries and services.

4. Nghia Dan Industrial Park

• Area: 245.68 hectares
• Location: Nghia Dan District, Nghe An Province
• Encouraged Investment Sectors: Multi-sector, including agricultural, forestry, and mineral processing, animal feed production, building materials, and mechanical assembly for motorcycles, chemicals, etc.

5. Bac Vinh Industrial Park

• Area: 60.16 hectares
• Location: Vinh City, Nghe An Province

6. VSIP Industrial Park

• Area: 370 hectares
• Location: Hung Nguyen District, Nghe An Province
• Occupancy Rate: 97%

7. WHA Industrial Park

• Area: 2,100 hectares
• Location: Nghi Loc District, Nghe An Province
• Occupancy Rate:

• Phase 1: 80%
• Phase 2: 50%

Industrial Parks Seeking Investment

1. Hoang Mai II Industrial Park

• Area: 343.69 hectares
• Location: Quynh Luu District, Nghe An Province

2. Tan Ky Industrial Park

• Area: 600 hectares
• Location: Tan Ky District, Nghe An Province

3. Song Dinh Industrial Park

• Area: 301.65 hectares
• Location: Quynh Hop District, Nghe An Province

4. Tho Loc Industrial Park

• Area: 1,159.71 hectares
• Location: Dien Chau District, Nghe An Province

See more: 6 key factors to consider to build or lease a workshop

See more: Cost-effective strategies for upgrading and renovating factory