Sign up for our newsletters
The best of Business news, in your inbox.
Viet Nam
Industrial Park Situation
Text by Saito Hiroshi
The 16th: Long An Province - The province eager to attract foreign investment (FDI)
When entering the manufacturing industry in Vietnam, choosing the right industrial park in the appropriate region is a crucial point. There are provinces actively working to attract FDI, and I would like to introduce some examples of these. This time, I will introduce the situation in Long An Province, which is conveniently located near Ho Chi Minh City.
1. Location/Area/Population :
Long An Province is bordered by Ho Chi Minh City and Tay Ninh Province to the east, Svay Rieng Province of Cambodia to the north, Dong Thap Province to the west, and Tien Giang Province to the south.
The provincial capital, Tan An City, is located 47 km south of Ho Chi Minh City. The area of Long An Province is approximately 4,500 square kilometers, with a population of about 1.38 million people.
2. Industrial parks in Long An province:
Currently, there are 17 industrial parks in Long An province:
1. Duc Hoa Industrial Park,
2. Duc Hoa 2 Industrial Park,
3. Duc Hoa 3 Industrial Park,
4. Xuyen A Industrial Park,
5. Tan Duc Industrial Park,
6. Phu An Thanh Industrial Park,
7. Vinh Loc Industrial Park,
8. Thuan Dao Industrial Park,
9. Nhut Chanh Industrial Park,
10. Hoa Binh Industrial Park,
11. Phuc Long Industrial Park,
12. Cau Tram Industrial Park,
13. Tan Kim Industrial Complex,
14. Long Hau Industrial Park,
15. Long Hau 3 Industrial Park,
16. Cang Phuoc Dong Industrial Park,
17. There is Thanh Duc Industrial Park. There is a 6-story building-type rental factory in Long Hau Industrial Park, which is recommended for manufacturers looking for a small-scale factory (100m2 or more) for light industry.
3. Characteristics of Long Hau Province:
Long An Province, among the 12 provinces of the Mekong Delta in southern Vietnam, is the closest to Ho Chi Minh City and is referred to as the “Gateway to the Mekong Delta.” The Mekong Delta is a wetland area at the mouth of the Mekong River, known as a granary region producing rice and other crops. Due to the ease of procuring raw materials, many food-related manufacturing industries have entered the area. However, since there are many reclaimed lands and some areas with relatively soft ground, light industries are predominant, while the region is not suitable for heavy industries.
4. Japanese manufacturing companies operating in Long An Province:
Major Japanese manufacturing companies operating in Long An Province include Sapporo (Duc Hoa 3 Industrial Park) and Inoac (Long Hau Industrial Park).
5. Educational situation in Long An Province and surrounding areas:
Long An Province is adjacent to District 7 in Ho Chi Minh City, which is a Japanese residential area and has Japanese schools and international schools, so if you live in District 7 and have a workplace in Long An Province, it is very convenient for expatriates to send their children to school and for the expatriates themselves to commute to work.
6. Living conditions around Long An Province:
1) Housing situation:
Almost all Japanese expatriates working in the industrial parks of Long An Province live in District 7 of Ho Chi Minh City. The commute takes only 30 to 40 minutes, which is shorter compared to other industrial parks, resulting in minimal commuting stress. Additionally, District 7 is home not only to Japanese but also to many Westerners and Koreans, offering a variety of serviced apartments for foreigners, such as Crescent Residence and Sky Garden, providing ample choices for accommodation.
2) Restaurant situation:
District 7 offers a wide variety of Japanese, Korean, and Western restaurants, providing many enjoyable dining options. The riverside restaurant district, inspired by Clarke Quay in Singapore, is lined with international cuisine restaurants and serves as a relaxing spot for expatriates. Additionally, the intense competition among restaurants ensures high quality.
Ippudo, famous for its ramen, has also opened its second store in Ho Chi Minh City in District 7.
3) Shopping situation:
In District 7, there are large shopping centers like Crescent Mall and Lotte Mart, which host numerous stores catering to foreigners. Additionally, there are street-level shops selling Japanese and Korean groceries, as well as stores targeting Westerners such as wine shops and bagel shops. This diversity ensures that shopping needs are well met in the area.
7. Summary:
Long An Province, located near the Mekong Delta, benefits from easy access to raw materials for food-related manufacturing industries. It is also conveniently located for commuting from District 7 in Ho Chi Minh City, which is popular among Japanese expatriates with families. Due to these advantages, many Japanese manufacturing companies have established operations there. Moreover, there are several industrial parks offering small units ranging from hundreds of square meters tailored for small and medium-sized enterprises from Japan and Korea, making it highly favorable for light industries. The area also provides a well-rounded living environment for expatriates, including residences suitable for assignees, a variety of high-quality Japanese and Western restaurants, and amenities like Aeon Mall. Additionally, the local Vietnamese population in this region is known for their gentle demeanor, contributing to fewer worker disputes or labor strikes compared to other areas. The consistently warm climate attracts a quality workforce, with the labor force increasing by 3-5% annually, making it an environment well-suited for manufacturing industry expansion.
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.
