Hung Yen increasingly appeals to investors

June 12, 2023 | 13:39
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Strategically located in the heart of the Red River Delta in the middle of northern Vietnam’s strategic economic zone, Hung Yen is an ideal choice for domestic and international investors, leveraging its connected transport network, along with a transparent investment environment.

In light of the 19th Resolution of the Party Congress 2020-2025, the Party has identified its goal to turn Hung Yen into an industrial province by 2025. The steps towards reaching that goal include attracting investment according to plans; prioritising large-scale industrial and high-tech projects; and developing transport infrastructure to facilitate economic development.

In recent times, Hung Yen’s transport infrastructure has seen breakthrough improvement, with several important projects being taken into operation; namely ring roads and freeways connecting Hung Yen to neighbouring regions, such as Hanoi - Haiphong Expressway, Hanoi’s Ring Road No.4, and Cau Gie - Ninh Binh Expressway.

New residential areas such as Ecopark, Dream City, Xuan Cau, and Bach Giang have also contributed to a new image of Hung Yen.

Hung Yen increasingly appeals to investors
Hung Yen increasingly appeals to investors
50 businesses from Taiwan visited to consider investment in IZ No. 5 in Hung Yen

With the completion of projects gearing towards improving local transport facilities, Hung Yen has increased the utilisation of local road networks, facilitating the development of its industrial zones (IZs) and residential areas, such as Industrial Zone No.5, to be located at the intersection of two highway systems that connect to Highway No.5B after the completion of the newly planned connection road.

According to Hung Yen Industrial Parks Management Board, there are currently 17 IZs that have been planned with a total area approximating 5,000 hectares. Out of those, 11 have been approved for investment with a total area of 2,800ha and a total investment reaching $625.8 million.

Pham Truong Tam, director of the management board, noted that Hung Yen’s IZs all have advantageous locations and transport infrastructure, meeting the diverse needs of businesses and investors.

Until now, Hung Yen has nine IZs in operation with an occupancy rate approximating 46 per cent; among them Det May Pho Noi IZ has been filled with investors.

Nguyen Tuan, director of Yen My Investment JSC, the developer of IZ No.5 said, “With active support from Hung Yen management authorities and the Management Board of Hung Yen Industrial Parks, our project hasprogressed quickly, being given cleared space within 15 months from the date of approval."

"We have high regards for the provincial policies and the transparency in local investment environment. We are accelerating the rate of building infrastructure in our IZ to facilitate investment from investors.”

In recent years, there has been positive development when it comes to IZ investment. Since 2020, IZs have enticed $2.2 billion, and 2022 saw $730 million, the best year ever for IZ investment attraction.

In the first months of 2023, Hung Yen’s IZs hailed $327 million. As of May 2023, there were 520 projects with an investment pipeline reaching $7.1 billion.

Domestic budget revenue in 2022 was $121.7 million, creating jobs for 78,000 local workers. Investments have come from multinational companies such as Nippon, Panasonic, Samsung, Canon, Foxconn, LG, and Dell.

In early June, Nguyen Hung Nam, Deputy Chairman of Hung Yen People’s Committee, had a meeting with Singapore’s COT Corporation. According to a COT representative, after thorough market research, the company picked Hung Yen as its investment destination thanks to its investment policy, favourable pricing and labour force factors, and quality industrial facilities.

COT will commence its project in November 2023, expanding its investment scale over 20ha in the next five to eight years with total investment value of $500-800 million to support manufacturing.

From the view of investors, Hung Yen’s investment environment has seen clear improvements, reflected in the Provincial Competitiveness Index which saw Hung Yen rise by 28 spots in 2022, now standing 14th out of 63 localities nationwide.

Besides this, the Provincial Green Index, which ranks localities in terms of environmental friendliness has recognised Hung Yen’s effort in improving its environment, and ranks Hung Yen at 14th position out of 63 localities in Vietnam.

These all contribute to improving Hung Yen’s image according to investors. Aside from its advantages in location, real estate, and investment environment, Hung Yen has also focused on listening and reacting to businesses’ questions and concerns.

Every year, the province organises a conference to meet with investors and businesses in the province to gather feedback about difficulties they face and render potential improvement to further ease up the investment process.

Foreign investors in Hung Yen’s IZs come from 22 different countries.

Japan has the highest number of projects in Hung Yen with 142, with a total investment of $3.332 million, accounting for 51 per cent of projects and 61 per cent of the total investment.

China comes second with 49 projects valued $728 million, followed by South Korea with 52 projects valued $575 million.

Other countries, such as the United Kingdom, the United States, the Netherlands, and Thailand, collectively contributed 37 projects with $787 million in the total investment value.

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By Quynh Nga

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