Posted 10.02. 2021 by Cekindo
Benefiting from the China-US Trade War, Vietnam has emerged as one of the top choices for foreign investors to shift and diversify their production and supply chain from China. Multinational corporations such as Samsung, LG, Foxconn (Apple), and many Japanese manufacturers have been shifting their production from China to Vietnam.
Vietnam offers a stable political and business environment, developing infrastructure, fastest-growing economy in Southeast Asia despite COVID-19 (ADB), low wages, etc for these relocations. The country’s Industrial Zones also provide strategic locations by sector for a wide range of business production.
Industrial zones are mostly located in the three major regions in Vietnam: the southern region, the central region, and the northern region. Each region’s industrial zones have their unique features and incentive programs for different industries.
Known as the Southern Key Economic Zone (SKEZ), this region consists of eight provinces and cities: Ho Chi Minh City, Dong Nai, Binh Duong, Ba-Ria-Vung Tau, Long An, Tien Giang, Binh Phuoc, and Tay Ninh. The most active economic zone with the highest foreign investments in Vietnam is located around Ho Chi Minh city.
SKEZ has much development in technology, exports, commerces, telecommunications, and services.
Five provinces are in the Central Key Economic Zone (CKEZ). They are Da Nang, Thua Thien Hue, Quang Ngai, Binh Danh, and Quang Nam. The CKEZ is less developed than the north and the south, but there are still many investment activities around Da Nang.
The CKEZ is famous for its marine economy and light industries such as food processing. The government also aims to boost more development in specific sectors, including logistics, oil and gas, high-tech sectors, and shipbuilding.
The North Key Economic Zone (NKEZ) is the most developed region and has seven provinces and cities: Hanoi, Bac Ninh, Hai Phong, Hung Yen, Hai Duong, Quang Ninh, and Vinh Phuc. NKEZ concentrates on agricultural products, and its proximity to China makes this region ideal for manufacturing sectors.
Infrastructure development varies in different industrial zones in Vietnam. When foreign investors seek a suitable industrial zone for their investment, the industrial zone’s infrastructure development is also one of the critical elements to consider. Vietnam’s government has been working hard to improve its infrastructure to meet the global standards to catch up with its title as one of the fastest-growing economies in the world.
The Provincial Competitiveness Index of 2018 showed that industrial zones in five provinces in Vietnam – Da Nang, Binh Duong, Hai Duong, Vinh Phuc, and Ba Ria-Vung Tau have the most developed infrastructure. These industrial zones are situated near airports, highways, railways, and seaports interconnected, making transportation and logistics much more efficient and convenient for businesses.
Other elements that foreign investors should consider are the buildings’ quality such as warehouses and factories, water and electricity supplies, waste disposals, wastewater treatment facilities, fire prevention infrastructure, telecommunications, banks and post offices accessibility, and other logistics infrastructure such as inner roads.
Significantly inexpensive labor is one of the perks attracting foreign investors to establish a business in Vietnam. However, talent availability is not equal in a different part of the country. In cities in Vietnam’s northern region, such as Hai Phong and Hanoi, and southern regions such as Ho Chi Minh City, a skilled and talented workforce is plentiful and easy to find, but it is also very competitive.
The central region in Vietnam, on the contrary, lacks qualified workers and thus making finding the right talent in the central region, especially candidates in high-level positions or specialized areas, quite tricky compared with the north and the south.
Cekindo is a consulting firm specializing in company setup and business solutions in Vietnam. Our focus is to provide you professional assistance that will ensure your foreign investment projects’ success in industrial zones in Vietnam.
Our company registration in industrial zones in Vietnam will give you many advantages as an investor. You can benefit from the installed infrastructure in the industrial zone, as well as a streamlined investment process. This way, you can cut down the long process of acquiring different licenses from various government authorities and start your business operations more rapidly.
For more details on the company set up in Vietnam, please send us an inquiry with the form below and learn more.