Ever since global manufacturing companies started pulling their factories out of China, Vietnam has become the new hotspot for global manufacturing. Industrial parks in Vietnam are gaining much popularity as sites for mechanical workshops and many other types of businesses to establish their firms. This article will explain to you why.
Locations of Industrial Parks in Vietnam
Industrial parks in Vietnam are located in three regions of the country: northern region, central region, and southern region. Each region has a unique set of incentive programs and characteristics.
1. Northern Region
The northern region’s industrial parks in Vietnam are located in 25 provinces. The North Key Economic Zone (NKEZ) makes up seven more provinces and cities and they are Hai Phong, Hanoi, Bac Ninh, Hung Yen, Hai Duong, Quang Ninh, and Vinh Phuc.
The northern region is particularly ideal for businesses that want to move their production from China to industrial parks in Vietnam due to the region’s proximity to China. The northern region is also the most preferred option for businesses to import raw materials and goods from China.
2. Central Region
Vietnam’s Central Key Economic Zone (CKEZ) has five provinces: Da Nang, Thua Thien Hue, Quang Nam, Binh Danh, and Quang Ngai. Most of the activities happen around Da Nang.
The central region has fewer industrial parks when compared to the northern and southern regions. Light industry projects, for example, food processing activities, are the major industries in this region.
3. Southern Region
Known as the industrial park center of Vietnam, the southern region in Vietnam is the most vibrant economic zone in the entire country. This region attracts the highest amount of foreign direct investments thanks to its encouraging investment environment.
The key advantage of the southern region is its proximity to Vietnam’s largest commercial ports, major cities, seaports, airports, borders, and main highways.
Reasons to Build a Mechanical Workshop in an Industrial Park in Vietnam
Here are the important factors why you should set up a mechanical workshop in an industrial park in Vietnam:
1. Fend Off Legal Risks
The government of Vietnam advises mechanical production to relocate their facilities due to the pollution issues in urban areas. If the authority finds out any constructions of mechanical workshops in restricted urban areas, it will result in legal sanctions.
This is why opening your mechanical workshop in industrial parks in Vietnam is a smart choice to avoid legal risks that can be detrimental to your business.
2. Take Advantage of Incentives
The government encourages businesses to open a mechanical workshop in industrial parks in Vietnam with preferential policy issuance. Enterprises are eligible for particular preferential policies depending on the type of investments.
These preferential policies will provide tremendous support to companies in their first few years of operation in industrial parks.
3. Increase Customer Base and Grow Community
Enterprises having their mechanical workshops set up in industrial parks in Vietnam allows them to connect with other businesses and industries that are also operating in the industrial parks, helping them to grow their customers.
Mechanical businesses can also form their community since there are also other mechanical enterprises operating in the same industrial parks. A community helps mechanical companies to share and exchange ideas, as well as establishing meaningful partnerships.
How Cekindo can Assist
Company registration is an important first step to set up your mechanical workshop in industrial parks in Vietnam once you have selected your ideal company structure. You must incorporate your company correctly, to make sure that you are embarking on your business journey in the best possible way.
Cekindo is a leading company setup firm in Vietnam with experts to help you consider many factors when forming a mechanical workshop in industrial parks in Vietnam, and then providing you with the most suitable solutions.
Our professional business consultants manage the entire process of company registration, from determining the availability of company names to obtaining a business certificate and other necessary permits.
If you are not confident in going through the process yourself, contact our friendly Cekindo team via the form below and we will help you out.