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Viet Nam
Industrial Park Situation
Text by Saito Hiroshi
The 18th FDI (Foreign Direct Investment) recipient province eager to attract investment - Ba Ria - Vung Tau province
When manufacturing companies advance into Vietnam, the selection of an industrial park in the region is an important point. There are provinces that are enthusiastically working to attract FDI (Foreign Direct Investment), so I would like to introduce a few examples. This time, I will introduce the situation in Ba Ria – Vung Tau province, which is located near Ho Chi Minh City and is rich in energy resources.
1. Location/Area/Population :
Ba Ria – Vung Tau province is located about 120 km southeast of Ho Chi Minh City, bordering Dong Nai province to the north, Ho Chi Minh City to the west, Binh Thuan province to the east, and the South China Sea to the south. The provincial capital is Ba Ria city, with an area of approximately 1,990 square km and a population of around 1.03 million.
2. The industrial parks in Ba Ria - Vung Tau province:
Currently, there are 15 industrial parks within Ba Ria – Vung Tau province:
1. My Xuan B1 – Conac Industrial Park,
2. My Xuan B1 – Tien Hung Industrial Park,
3. My Xuan Dai Duong Industrial Park,
4. My Xuan A1 Industrial Park,
5. My Xuan A2 Industrial Park,
6. Phu My 1 Industrial Park,
7. Phu My 2 Industrial Park,
8. Phu My 3 Industrial Park,
9. Cai Mep Industrial Park,
10. Chau Duc Industrial Park,
11. Dong Xuyen Industrial Park,
12. Long Son Industrial Park,
13. Dat Do Industrial Park,
14. Da Bac Industrial Park,
15. Long Huong Industrial Park.
The Phu My 3 Industrial Park is a “Special Industrial Zone” that was approved in 2014 based on an agreement between the Vietnamese and Japanese governments. Nittetsu Shoji serves as the window for supporting the advancement of Japanese companies into this industrial park.
3. Characteristics of Ba Ria-Vung Tau Province:
Ba Ria – Vung Tau province is located about a 2-hour drive from Ho Chi Minh City and is famous as a beach resort destination, with many hotels and seafood restaurants. Offshore of the province, there are large-scale oil wells and gas fields, which account for over 90% and nearly 20% of Vietnam’s total reserves, respectively, attracting many energy-related companies. Additionally, as one of the economic hubs of the South, the province has the largest number of major ports nationwide. It can accommodate container ships of over 100,000 tons, enabling direct exports to Europe, America, and other overseas destinations without the need to transit through other ports.
4. Japanese manufacturing companies that have advanced into Ba Ria - Vung Tau province:
Major Japanese manufacturing companies that have advanced into Ba Ria – Vung Tau province include: INAX (in Mieu An A) Vina Kyoei Steel: a joint venture between Kyoei Steel, Mitsui & Co., Itochu, Marubeni Steel, and the Vietnam Steel Corporation (in Phu My 1) Vietnam-Nippon Steel Pipe (in Phu My 2) Nitori Vietnam Japan Gas (in Phu My 3)
5. Educational situation in Ba Ria-Vung Tau Province:
a) Ba Ria-Vung Tau College of Technology：
There is a vocational training school in Vietnam that trains Vietnamese technical personnel, and it has also received ODA financial assistance from the Japanese government. The school is affiliated with Tokyo Metropolitan Rokugo Technical High School, as well as universities in the UK, Germany, and Australia. It receives guidance from foreign experts in areas like welding, automotive technology, electricity, and mold making. The school then places its graduates at local Japanese manufacturing companies in Vietnam, as well as manufacturing companies in Japan.
b) UK Academy：
As an international school, it provides preschool education for children as young as 5 years old, as well as primary and secondary education entirely in English. The school is attended by the children of local Japanese and Western residents.
As an international school, it provides preschool education for children as young as 5 years old, as well as primary and secondary education entirely in English. The school is attended by the children of local Japanese and Western residents.
6. Living conditions in Ba Ria-Vung Tau Province:
a)Housing situation:
Compared to Ho Chi Minh City, rents are about 30-40% cheaper in Ba Ria – Vung Tau province. It is possible to rent a serviced apartment or apartment (equivalent to a condominium in Japan) of around 100 sq.m (2LDK, 3LDK) for around US$1,000 per month.
b)Restaurant situation:
As mentioned, since it is near beach resorts, there are many restaurants along the coastline where you can enjoy fresh and affordable seafood. There are also a number of Japanese restaurants, as well as Western restaurants and Pizza Hut.
As mentioned, since it is near beach resorts, there are many restaurants along the coastline where you can enjoy fresh and affordable seafood. There are also a number of Japanese restaurants, as well as Western restaurants and Pizza Hut.
c) Shopping circumstances:
In addition, there are shopping centers and convenience stores like Co-op Mart that are frequently used by foreigners, so it’s not too inconvenient. However, it is difficult to obtain Japanese food ingredients.
Ba Ria – Vung Tau province is famous as the closest beach resort to Ho Chi Minh City. However, it is also blessed with natural resources like oil and gas, so it has attracted many energy-related companies. The province also has well-developed port facilities, which is advantageous for manufacturing companies focused on exports. Additionally, there is a vocational training school within the province, so companies don’t struggle to hire engineers. For expatriate employees, the costs of living, such as rent and food, are significantly lower compared to Ho Chi Minh City. And with the nearby beach resorts, it’s easy for them to take breaks and change their scenery.
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.
