Building factories in Thai Nguyen are attracting the attention of major FDI enterprises such as Samsung, Sunny, Dongwha,…due to its flexible investment policies, business-friendly environment, and the province’s vision to become a modern, smart industrial economic center by 2030.
Advantages for investors in building factories in Thai Nguyen
Thai Nguyen province is the political and economic center of the Viet Bac region in particular, of the northeastern midland and mountainous region in general, and a gateway for socio-economic exchanges between the midland and mountainous region and the Northern Delta.
The transportation planning map of Thai Nguyen 2020 – Now
- Its location offers numerous advantages: It is the center of the Viet Bac region. The north borders Bac Kan province, the west borders Vinh Phuc and Tuyen Quang provinces, the east borders Lang Son, Bac Giang provinces and the South borders Hanoi capital city; Thai Nguyen city center is 50 km from Noi Bai international airport, 75 km from Hanoi, and 200 km from the border gate with China and Haiphong port.
- Thai Nguyen is one of the regions with abundant and diverse mineral resources, boasting substantial reserves: It holds the second-largest coal reserves in the country and possesses various metallic mines such as tin, lead, zinc, tungsten, gold, copper, nickel, and mercury, and numerous mines suitable for extracting construction materials,… making it favorable for attracting investors in machinery manufacturing – metal processing and mechanical assembly, construction material production, metal production, mining and processing of minerals to build factories in Thai Nguyen.
Modern and comprehensive infrastructure
Thai Nguyen has developed a modern and comprehensive infrastructure that contributes to its economic and social development, focusing on the infrastructure of industrial parks and clusters:
- Road system: Road system with new National Highway 3 Hanoi – Thai Nguyen – Bac Kan New Market; National Highway 37 connects Bac Giang – Thai Nguyen – Tuyen Quang and many national highways connect Thai Nguyen with neighboring provinces.
- Rail system: connecting Thai Nguyen – Hanoi – Hai Phong – Lao Cai – Lang Son and North-South railway; The river system includes Da Phuc port connecting with provinces in the Red River Delta and Haiphong port.
The Development Plan: Economy and Vision of Thai Nguyen from 2021 to 2030
With the goal of economic growth in the 2021-2030 period, Thai Nguyen aims to become a modern, smart industrial economic center of the northern midlands and mountainous regions and Hanoi capital city:
- By 2030, Thai Nguyen province aims to become one of the centers for high-level manufacturing of electricity, electronics, and mechanical engineering; center for education and training of high-quality human resources, research and application of high technology in production
- Aiming for the economic growth rate (GDP) to reach about 8% to 8.5% per year; the economic scale reached about 13.5 billion USD; the total social investment capital in the period 2021 – 2030 is about 45 billion USD.
- Promoting digital transformation, developing digital economy and society, and enhancing production and business activities with digital technology applications.
- Strong restructuring in the industrial sector, prioritizing investments in projects to build industrial factories in Thai Nguyen that support the application of high technology, and developing concentrated industrial zones and clusters such as Song Cong II Industrial Park Phase 2, Tay Pho Yen Industrial Park, Phu Binh Industrial Park, etc.
Thai Nguyen’s strong potential for economic development is evident through the total FDI capital invested in processing and manufacturing industries within its industrial parks.
Understanding the labor force is always one of the crucial factors in attracting investment, and Thai Nguyen also has policies to develop human resources in line with the province’s development trends. Especially labor serving the industrial and commercial sectors, as well as those engaged in the digital transformation.
According to the announcement in September 2020 by the VCCI Thai Nguyen, the rate of businesses rating the quality of general education in the province as good reached 72%, higher than the national average. The rate of businesses rating vocational education as good quality increased by 15% compared to 2020, which ranks among the top in the country. Up to 94% of the labor force in the province meets the labor demand of businesses.
The goal by 2025 is to increase the proportion of labor through training to 75%, of which 32% hold formal certifications. The province strives to have 40-45% of high school graduates enter the vocational education system; the rate of workers with IT skills reaches 80%. At least 50% of the training programs for key sectors will meet quality assurance standards, 30% of vocational training facilities, and 80% of vocational schools will be built to meet national competency framework standards. The province aims to have at least one high-quality college to expand its capacity to cooperate with international vocational education organizations.
FDI in Thai Nguyen
According to the report from the Department of Planning and Investment of Thai Nguyen province, by the first 4 months of 2023, there are currently 181 valid FDI projects with a total registered investment of nearly 10.5 billion USD. Major FDI enterprises investing in building factories in Thai Nguyen, such as Sunny Optical Technology, Samsung, Dongwha,.. are clear evidence of the attractiveness of the investment environment and the appealing investment policies in the province:
Human Resources Policy
Thai Nguyen has implemented policies aimed at training high-quality human resources to meet the objectives of socio-economic development and the vision towards 2030:
- Thai Nguyen is the third largest training center in the country, with numerous universities, colleges, and vocational training centers offering various fields of study to meet the demand for skilled labor. The educational level of the workforce in Thai Nguyen is higher than the average level of the Northern Midlands and Mountainous Region and the whole country, with a significant proportion of high school and secondary school graduates, effectively meeting the labor demand for investors in building factories in Thai Nguyen.
- In July 2023, the Department of Planning and Investment of Thai Nguyen province issued a plan to support the development of human resources for small and medium-sized enterprises (SMEs) in Thai Nguyen province, utilizing the central budget for the year 2023.
Production line in Samsung Electro-Mechanics Factory in Yen Binh Industrial Park, Thai Nguyen
Policy on infrastructure development of industrial parks
The Prime Minister has recently approved the master plan of Thai Nguyen province for the period of 2021 – 2030, focusing on the development of infrastructure in industrial parks to serve investors in building factories in Thai Nguyen province, as follows:
- Increasing the area of industrial zones in the planning to 4,245 ha, nearly three times the current size of the existing industrial parks. The planned industrial parks include: Song Cong II Industrial Park phase 2; Phu Binh Industrial Park – Urban – Service Complex; Yen Binh Concentrated Information Technology Park
- New planning of 4 industrial parks with a total area of 1,599 ha located in Phu Binh district (03 zones with an area of 731 ha) and Pho Yen city (01 zone with an area of 868 hectares)
- Infrastructure development in the southern region of the province; Investment in site clearance creates a land fund to attract investors to build factories in Thai Nguyen. The development of transportation, industrial zones, clusters, urban areas, and services will be interconnected with the development of Hanoi capital city.
- A number of large-scale projects have been started construction, including: The regional linking road project connecting the provinces of Bac Giang, Thai Nguyen, Vinh Phuc and Tuyen Quang through 5 highways with an investment of over 3,700 billion, expected to be completed and put into operation in 2025.
Business incentives/support policies
The province offers several incentives to support businesses when they come to invest and build factories in Thai Nguyen:
- The provincial public service portal provides online access to 100% of public administrative procedures ranging from level 2 to level 4 with a timely processing rate of more than 98%.
- Apply the corporate income tax rate lower than the normal tax rate for a definite term or the entire duration of the investment project; exemption and reduction of corporate income tax;
- Exemption from import tax on imported goods used to create fixed assets; raw materials, supplies, and components used for investment projects; Exemption and reduction of land rent, land use fee and land use tax
- Investment incentives apply to new investment projects and expansion investment projects (Investment projects in prioritized industries and sectors eligible for investment incentives; Investment projects located in areas eligible for investment incentives; High-tech enterprises, science and technology enterprises, science and technology organizations, etc.)
List of Industrial Parks in Thai Nguyen Province
Currently, the province has invested in a safe, modern and comprehensive system of electricity, water supply and irrigation in industrial parks, fully meeting the production and living needs of FDI enterprises when building factories in Thai Nguyen:
1-Song Cong Industrial Park I
– Area: 320 hectares
– Location: Tan Quang Ward, Song Cong City, Thai Nguyen Province
2-Song Cong II Industrial Park
– Area: 250 hectares
– Location: North of Tan Quang commune, Song Cong city, Thai Nguyen province
3-Nam Pho Yen Industrial Park
– Area: 200 hectares
– Location: Located in the south of Pho Yen district, Thai Nguyen province
4-Yen Binh Industrial Park
– Area: 400ha
– Location: Dong Tien Commune, Pho Yen city Thai Nguyen province
DAINESE Vietnam factory in Yen Binh Industrial Park in Thai Nguyen, by DELCO as the Design-Build contractor for M&E system and provides smart solutions for the factory
5-Diem Thuy Industrial Park
– Area: 350 hectares
– Location: Phu Binh district, Thai Nguyen province
6-Quyet Thang Industrial Park
– Area: 200 hectares
– Location: Quyet Thang Commune, Thai Nguyen province
7- Phu Binh Industrial Park
– Area: 675 hectares
– Location: Tan Hoa commune, Luong Phu commune and Huong Son town, Phu Binh district, Thai Nguyen province
In addition to the above 7 industrial parks, Thai Nguyen Province has also been approved by the Prime Minister for a new plan of 4 industrial parks with a total area of nearly 1,860 hectares in the Thai Nguyen Provincial Plan for the period of 2021-2030, with a vision to 2050:
1-Yen Binh Industrial Park 2
– Expected scale: 301 ha
– Location: Hong Tien, Tien Phong and Dong Tien wards, Thai Nguyen province
2-Yen Binh Industrial Park 3
– Expected scale: 300 hectares
– Location: Phu Binh district, Thai Nguyen province
3-Thuong Dinh Industrial Park
– Expected scale: 130 ha
– Location: Phu Binh district, Thai Nguyen province
4-Tay Pho Yen Industrial Park
– Expected scale: 1,128 ha.
– Location: Minh Duc commune, Dac Son, Van Phai, Pho Yen district, Thai Nguyen province
Industrial cluster development plan from 2021 to 2030
Accordingly, the province will develop industries such as mechanical engineering, electronics, and metal manufacturing. Priority will be given to industries applying high technology, environmentally friendly, and value-added sectors. The province aims to establish a connection between industrial development and the training of human resources and high-quality services, including logistics, finance, banking, real estate, IT, and communication.
DELCO is the Design-Build contractor to build the factory in Thai Nguyen and many large projects throughout the northern provinces, so DELCO can confidently consult – design, provide smart solutions for the factory, help optimize costs and ensure production efficiency for investors..
Source: Thai Nguyen Provincial Industrial Park Management Board, Thai Nguyen Province Investment Promotion Information Page, Investment Newspaper, Construction Newspaper, Audit Newspaper