Aspiring to Become Major National Industrial Hub

To achieve its goal of becoming a major industrial center by 2030, with a vision to 2050, Vinh Phuc has implemented various mechanisms and policies. The province prioritizes strategic investors and high-tech manufacturers to bolster key industries in both Vinh Phuc and the Red River Delta.

Jahwa Vina Co., Ltd at Khai Quang Industrial Park

With geographical and traffic advantages and preferential policies, Vinh Phuc has attracted many big foreign investors such as Toyota Motor Vietnam, Honda Vietnam, Vitto Group, CNCTech Group, Heasung Vina, Partron Vina, Jawa Vina and Power Logics Vina. The investors have played an important role in promoting the socioeconomic development of the Hanoi region and the Red River Delta, especially the development of mechanical engineering, automobile, motorbike, and electronic equipment manufacturing.

Currently, Vinh Phuc is home to 19 industrial parks (IPs) approved by the Prime Minister for planning. 16 IPs have been established with a total area of 3,268.02 ha.

To develop intensive industries, the province has focused on attracting strategic investors and multinational corporations with investment projects using advanced technologies and new technologies, producing positive spillover effects and linking their activities with global production and supply chains. Vinh Phuc prioritizes investment in infrastructure connected with external infrastructure and reduces the time for investors to access land and implement investment projects after being granted investment licenses. As a result, Vinh Phuc has constantly been a leading light in investment attraction and industrial development in the country.

By July 2024, the province attracted 476 foreign direct investment (FDI) projects with over US$8.3 billion of registered investment capital from 20 countries and territories, including highly developed US, Japan and Europe, and 842 domestic direct investment (DDI) projects with VND143.678 trillion. Recently, Signetics Joint Stock Company (South Korea) and CNCTech Group signed a US$100-million cooperation agreement on construction of a semiconductor factory which will make Flip-Chip, MCM, BGA, FBGA and other products which are important components used in the production of memory chips, GPUs and TVs. This project matches the province's investment priority in high-tech, mechanical engineering, electronics, supporting industries, and especially semiconductor and enables the province to become a major industrial center of the country.

In the coming time, Vinh Phuc will continue to provide a favorable environment to attract domestic and foreign investors, develop electronic components and accessories linked with global production and supply chains. The province is committed to executing Resolution 19 of the Government, which outlines key tasks and solutions for enhancing the investment and business environment and boosting national competitiveness. This commitment also includes implementing Resolution 01 of the Provincial Party Committee and the Provincial People's Committee's Project aimed at improving the investment climate and strengthening provincial competitiveness. To support these efforts, the locality will maintain regular dialogues between officials, businesses, and investors.

In addition, Vinh Phuc will strengthen vocational training to meet the labor recruitment needs of businesses; accelerate administrative procedure reform, enhance transparency and fairness to achieve the “three good goals” (good and comprehensive legal environment, good technical infrastructure, and good business service). Moreover, the province will maintain friendly cooperative relations with traditional markets such as Japan, South Korea and Taiwan (China) and aim for new markets with proven financial and technological strengths such as Europe and the United States.

To harness its potential in high-tech industries and reach an industrial production value of nearly VND450 trillion by 2025, with a 15% annual growth rate during 2021-2025, Vinh Phuc plans to attract multinational corporations and renowned firms, particularly from the US, EU, and Japan. The province aims to leverage these regions' technological, financial, and managerial strengths and encourages businesses to integrate their production into value chains.n

By Duy Binh, Vietnam Business Forum