Quang Ninh: New production hub in northern region

The event was co-organised by DEEP Industrial Zones, Quang Ninh Economic Zones Management Authority, and Quang Ninh Investment Promotion Agency.

The conference reported that energy prices were unstable due to political concerns and economic growth.

The Quang Ninh province investment promotion conference in Ho Chi Minh City on August 24

China persisting with its Zero-COVID policy and the downturn in cross-border goods exchange has fueled ongoing global supply chain disruptions and production diversification through manufacturing companies’ China Plus One strategy.

Industrial real estate leasing has caught this trend and sped up. According to CBRE, industrial leasing demand is increasing in both quantity and size in the first half of 2022, in which the land rental demand has grown by 10 per cent over the same period last year. Land acquisition enjoyed 10 per cent on-year growth while the figure was 7 per cent for ready-built factories and warehouses.

The average size for land plots required by tenants of all CBRE’s enquiries was 9.4 hectares in H1/2022 up from 9.2ha in 2021. For ready-built factories and warehouses, the figures stood at 6,700 square metres in H1/2022 compared with 6,100sq.m in 2021.

Vietnam counted more than $14 billion in foreign direct investment in the first six months of 2022, in which the north attracted $6.7 billion – slightly higher than the south with $6.5 billion.

The north offered more competitive industrial land prices and more options for tenants.

As a northern coastal province, Quang Ninh has leveraged all its available potential to develop manufacturing industries.

This locality focuses on developing high-tech industries such as automobile and electronic equipment manufacturing.

To attract investors, Quang Ninh prioritises infrastructure development, especially the construction of an expressway running across the province to the Mong Cai border gate. The last section of the expressway, Van Don-Mong Cai, will open to traffic on September 1.

Moving forward, the Hanoi-Haiphong expressway, key seaports, and international airports have all been put into operation. Quang Ninh is currently deemed to be the province with the longest highway system (nearly 200 km), which closely links the northern growth poles of Hanoi, Haiphong, and Quang Ninh and connects northern Vietnam with southern China.

Taking advantage of its geographical location, Quang Ninh is developing seaport-industrial park complexes with synchronous infrastructure.

Chau Thanh Hung, deputy director of Quang Ninh Economic Zones Management Authority, presenting Quang Ninh's investment environment to the investors

Currently, DEEP C is developing two important projects in the coastal economic zone of Quang Yen in Quang Ninh, namely Bac Tien Phong and Nam Tien Phong industrial zones (called DEEP C Quang Ninh).

The seaports built in DEEP C Quang Ninh will directly connect with Lach Huyen Deep-water Seaport in Haiphong through the Chanh River thanks to the Chanh River dredging project.

These seaport-industrial zone complexes will help reduce inland transportation costs, promote logistics development in the region, and are expected to be the key to improving Quang Ninh's competitiveness for investors.

Vietnam on way to become new global manufacturing hub Hanoi - Vietnam is now on its way to becoming a new global manufacturing centre.

Tackling power shortages in the northern region Behind-scheduled power line projects and soaring coal prices are exacerbating power shortages, particularly in the northern region, which could be alleviated in the coming months by leveraging radical measures from power management authorities.

According to Navigos Group (a leading recruitment agency), Quang Ninh has an abundant and young labour force as people at working age from 15 to 64 years old account for 67 per cent, leading to high productivity.

The quality of labour in recent years has also gradually improved. The labour demand is expected to increase significantly as many manufacturing companies come on stream over the next few years. The labour structure is expected to change thanks to the shift from other sectors such as agriculture and tourism to manufacturing industries.

Quang Ninh granting an investment certificate to the Core5 Quang Ninh project to invest in DEEP C Quang Ninh

Also at the Quang Ninh investment promotion event, the Quang Ninh Economic Zone Authority awarded an investment registration certificate for the Core5 Quang Ninh project at DEEP C Quang Ninh.

The project aims to develop ready-built factories and warehouses reaching international standards that are invested in and developed by Indochina Kajima – a joint venture between top developers Indochina Capital and Kajima Corporation (Japan).

The project has a total investment of $23.9 million, aiming to catch the wave of investments in manufacturing in Quang Ninh.