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Viet Nam
Industrial Park Situation
Text by Saito Hiroshi
The 14th: Dong Nai Province - A Province Eager to Attract Foreign Direct Investment (FDI)
When manufacturing industries expand into Vietnam, choosing the right industrial park in a province actively pursuing foreign direct investment (FDI) is crucial. I would like to introduce a few examples of such provinces. This time, I will introduce the situation in Dong Nai Province in southeastern Vietnam.
1. Location/Area/Population :
Dong Nai Province is located northeast of Ho Chi Minh City in southern Vietnam, bordered by Binh Duong Province to the east, Ho Chi Minh City and Ba Ria-Vung Tau Province to the south, and Lam Dong Province and Binh Thuan Province to the north. The provincial capital, Bien Hoa City, has a population of over 1.2 million. With an area of approximately 5,900 square kilometers and a population of about 3.2 million, Dong Nai Province benefits from good accessibility due to the opening of the East-West Highway. Industrial parks in the province are reachable from Ho Chi Minh City in about 1 hour by car.
2. Industrial parks in Dong Nai province:
Currently, Dong Nai Province hosts 37 industrial parks including Nhon Trach 1-6 Industrial Parks, Long Duc Industrial Park, Amata City Bien Hoa Industrial Park, and Loteco Industrial Park. Alongside Binh Duong Province, Dong Nai Province has become one of the two major manufacturing hubs in southern Vietnam.
3. Initiatives of the Dong Nai Provincial Government:
In 2023, Dong Nai Province entered the top 10 regions with the highest national income in Vietnam, exceeding 58 trillion VND. It is one of the key provinces in the southern economic region centered around Ho Chi Minh City, actively engaging in various economic cooperation efforts with Japan at the governmental level.
In September 2023, the People’s Committee of Dong Nai Province held a meeting to sign a memorandum of understanding (MoU) on green growth cooperation with Saigon Communication Technology Company. The signing ceremony was attended by Mr. Nguyen Hong Linh, member of the Central Committee of the Communist Party and Secretary of the Provincial Party Committee. The MoU aims to achieve net zero carbon emissions by 2050 as part of Dong Nai Province’s green growth objectives, with a focus on delivering tangible outcomes in these initiatives. According to the provincial People’s Committee, this green growth target aligns with Vietnam’s nationwide goals announced by Prime Minister Pham Minh Chinh at the COP26 Climate Change Summit in 2021. To achieve this, Dong Nai Province plans to develop a national strategy on climate change for the period up to 2050, outlining visions and goals across all key sectors to realize these ambitions.
In late 2023, the People’s Committee of Dong Nai Province held a meeting to discuss the development of the Long Thanh Airport area, a project that has been under construction since 2015. The meeting was attended by members of the Central Committee of the Communist Party, including Mr. Nguyen Hong Linh, Secretary of the Provincial Party Committee, and numerous companies from both domestic and international sectors. The new Long Thanh International Airport, which is expected to become a regional and international hub, has garnered high expectations. Besides alleviating congestion at Tan Son Nhat Airport, it aims to enhance infrastructure such as surrounding highways, facilitating further development of industrial parks and attracting more companies to the region. In early March 2024, a parliamentary audit team led by Vice Chairman of the National Assembly Nguyen Duc Hai audited the implementation status of numerous significant national projects undertaken by the provincial People’s Committee by the end of 2023. According to the provincial People’s Committee, representatives from the Airports Corporation of Vietnam (ACV) reported on the progress of the Long Thanh International Airport project to the audit team, stating that construction of major facilities in the first phase is progressing smoothly and on schedule. Efforts are being made to complete these key facilities by around September 2026 at the latest.
4. Japanese manufacturing companies operating in Dong Nai Province:
The major Japanese manufacturing companies that have invested in Dong Nai Province include Shiseido, Tonbo, Kao, Brother (Amata City Bien Hoa), Lixil, Terumo (Long Duc), Plus, YKK (Nhon Trach 3), and others.
5. Housing situation in Dong Nai Province:
Since the completion of parts of the East-West Highway in 2013 with Japan’s ODA, it has enabled commuting from Ho Chi Minh City to industrial zones in approximately one hour, allowing most Japanese working in Dong Nai Province’s industrial parks to reside within Ho Chi Minh City.
6. Restaurant situation in Dong Nai Province:
In the management building of the Nhon Trach 3 Industrial Park’s JSC (rental factory area), there is a Japanese restaurant called “KOME Japanese Restaurant,” which is also present in Ho Chi Minh City’s Japanese district. Employees from other industrial parks besides this one also utilize this restaurant.
7. Summary:
Dong Nai Province is located within commuting distance from Ho Chi Minh City, as mentioned earlier, and the provincial government actively promotes measures to attract Japanese companies, ensuring a robust support system for their Vietnam expansions. Additionally, construction work for the Long Thanh International Airport is underway, and many Japanese companies are considering their entry into the area in anticipation of the future opening of this airport.
Dong Nai Province, known for its firm ground conditions, allows for cost reduction and shortened construction periods when building factories. Therefore, many enterprises within the province’s industrial parks include those in the steel industry, plants, and companies dealing with heavy equipment.
Because commuting from Ho Chi Minh City is feasible, it’s easy for Japanese expatriates to commute, making it convenient for hiring Vietnamese staff for accounting, general affairs, interpretation, and other administrative roles compared to other districts.
齊藤公(Saito Hiroshi)
Business Advisor
G.A. Consultants Vietnam Co., Ltd
After graduating from university, he joined a PHP research institute and served as the head of the New York office. He then worked on the “Nagoya Port Redevelopment Project” at a subsidiary of the Chubu Nippon Broadcasting (CBC) company. He later shifted his base to Asia, where he was involved in the launch of “FM96.3” in Singapore, and the creation of “Hello Vietnam” and “Invest Asia” magazines in Vietnam. He then joined BW Industrial Development JSC, Vietnam’s largest rental factory development company, where he was responsible for attracting Japanese manufacturing companies. Currently, he is active as a consultant for the entry of Japanese companies at “G.A. Consultants”, one of the longest-standing Japanese HR consulting firms in Vietnam.
