Sharply increasing FDI capital flows to Hung Yen

November 28, 2023 | 10:26
(0) user say
By October, Hung Yen was home to nearly 2,200 investment ventures with a cumulative registered capital of over $20 billion, including 536 foreign-invested projects valued $6.76 billion. For the first time, this pushed it into the top 10 localities in terms of foreign direct investment (FDI) attraction in the country.

Lately, Hung Yen, some 60km northwest from Hanoi, has scaled up its FDI attraction activities and has posted inspiring results.

Foreign investors come from many countries and territories, of which, those from Japan rank first in the province with 173 projects worth more than $4 billion – followed by South Korea and China.

Sharply increasing FDI capital flow to Hung Yen (PR)
The Korean Business Association in Vietnam conducted a field survey at industrial parks in Hung Yen

Japan has created jobs for about 45,000 personnel, and contributed $59.3 million to the state budget in 2022.

Domestic and foreign investors have driven the province’s socioeconomic development. Statistics show that it is currently home to more than 16,200 businesses, valued at $8.31 billion. These include 405 foreign-invested ventures with $1.9 billion in total registered capital.

Hung Yen has a strong business community by virtue of its seamless transport infrastructure, ample available land, and policy mechanisms to attract investment.

Sharply increasing FDI capital flows to Hung Yen
The Thang Long II IP is home to nearly 100 foreign-led projects

There are currently 17 industrial parks (IPs) in the province that span 4,395 hectares. In particular, the Thang Long IP II – invested in by Sumitomo Group (Japan) – covers 525.7ha and has thus far enticed nearly 100 foreign-invested projects with a total value surpassing $3 billion, equal to 44.4 per cent of the province's total FDI capital.

Continuing to promote investment attraction

Along with economic integration, Hung Yen has proactively grasped opportunities to improve the local investment environment, making the best use of the area's potential and strengths through sound development planning and implementation strategies.

Sharply increasing FDI capital flows to Hung Yen
The cooperation agreement signing ceremony between Hung Yen Department of Planning and Investment and Deloitte Vietnam

In September, Hung Yen held a series of investment promotion activities in the Kansai region and in Tokyo, Japan. Speaking in a dialogue with businesses on the occasion, Tran Quoc Van, Chairman of Hung Yen People's Committee said, “Attracting investment is one of Hung Yen's three key aims in its socioeconomic development planning. In particular, priority should be given to attracting projects led by large-scale investors, multinational companies, and businesses that play a key role in leading supply chains in the region and around the world.”

“Emphasis is also placed on high-tech, environmentally friendly projects that can have spillover effects when linked with domestic businesses, helping to develop supporting industries and projects that add more value,” the chairman continued.

Hung Yen has a strong business community by virtue of its seamless transport infrastructure, ample available land, and policy mechanisms to attract investment.

Van said that Hung Yen hopes to cooperate and mobilise resources from overseas, especially with investors from Japan, allowing it to contribute more to the relationship between the two nations.

Also, Hung Yen took part in the Republic of Korea-Vietnam Economic Cooperation Forum from November 6 to 8 in Busan as part of the Invest KOREA Summit 2023 that was organised by the South Korean Ministry of Trade, Industry and Energy.

On a trip to accompany State President Vo Van Thuong to attend the 2023 Asia-Pacific Economic Cooperation Summit in San Francisco in mid-November, Nguyen Huu Nghia, Secretary of Hung Yen Party Committee, exposed the opportunities Hung Yen provides in promoting economic cooperation, investment, and trade between Vietnam and the United States.

To mark the occasion, Hung Yen signed an MoU with four US partners on semiconductors, high-tech industry, agricultural consumption, and waste treatment. Hung Yen People's Committee and SaigonTel also signed an agreement with Allotrope Parts on cooperation, research, and support for the province with its net emissions target.

Sharply increasing FDI capital flows to Hung Yen
The MoU signing between Hung Yen People's Committee, SaigonTel, and Allotrope Parts

It can be seen that Hung Yen has all the conditions for industrial development, especially high-tech industry and modern urban and service development, due to five outstanding factors.

The first is its favourable geographical location. This is followed by the fact that the province is home to many historical and cultural sites with rich traditions.

Thirdly, the economy has been developing dynamically thanks to rapid administrative reform, an improved business environment, and initiatives to foster private investment and FDI attraction.

Socioeconomic infrastructure, trade, services, logistics, energy, clean water, healthcare, education, training, and environmental protection are also being invested in heavily and developed synchronously.

Finally, its convenient, rapidly developing, and highly connected transport system, along with its young, abundant, and high-quality human resources meet the demand for projects in the province.

Sharply increasing FDI capital flows to Hung Yen
Secretary Nguyen Huu Nghia speaking at the roundtable discussion to connect businesses and localities in Vietnam and the US

According to the resolution of the 19th Hung Yen Party Congress, the strategic goal of developing Hung Yen to 2030, with a vision to 2045, is building the province into a modern industrial hub with high efficiency in terms of agriculture, and rapid and sustainable development. Harmoniously combining these three pillars will allow it to grow economically, build a well-functioning society, and to protect the environment.

Focus will be placed on developing high-tech and clean industry, cutting carbon emissions, and using few resources to build trade and services with great added value. This will boost the local economy and accelerate the pace of urbanisation, forming a modern urban system with synchronous and highly connected infrastructure. Emphasis will be placed on ecological, smart, and liveable cities, as well as industrial and service areas that ensure the provision of social housing for employees.

The top-priority fields for investment attraction are the manufacturing and assembly of cars, vehicle components, and aircraft, along with aviation, construction, energy, electrical, and medical equipment. Also, high on the list are the production of materials, especially new ones, the research and development of digital technology, robotics, and automation.

Chairman Van said, "Hung Yen is committed to sparing no effort in creating a safe, open, effective investment environment and continuously improving provincial competitiveness with simple administrative procedures and the best preferential policies and investment support within the framework of Vietnamese law, making Hung Yen a truly safe destination and the most reasonable choice for investors."

Hung Yen focuses on high-tech and supporting industries Hung Yen focuses on high-tech and supporting industries

By prioritising large-scale projects in high-tech and supporting industries along with developing associated facilities, Hung Yen province is creating leverage for economic development.

Foreign investment attraction - silver lining in Hung Yen province Foreign investment attraction - silver lining in Hung Yen province

Foreign investment attraction has been considered a bright spot in the northern mountainous province of Hung Yen, generating jobs, contributing to the State budget revenue while becoming a crucial driving force for the locality’s socio-economic development.

Spotlight on socioeconomic development in Hung Yen Spotlight on socioeconomic development in Hung Yen

Hung Yen province, over 60km northwest from Hanoi, has secured laudable socioeconomic development as it continues to exceed the state revenue budget target in only nine months of 2023. It is listed among the top 10 localities nationwide in terms of foreign investment attraction.

By Quynh Nga

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional