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Viet Nam
Industrial Park Situation
Text by Saito Hiroshi
The 33rd province actively embracing Foreign Direct Investment (FDI) is Bac Ninh.
When manufacturing companies expand into Vietnam, choosing the right industrial park in a specific region is a crucial factor. There are provinces and cities that are actively working to attract Foreign Direct Investment (FDI), and I would like to share a few examples. This time, I will introduce the situation in Bac Ninh province, located in the suburbs of Hanoi, where many electrical and electronics-related companies have established their presence.
1. Location / Area / Population
Bac Ninh province is bordered to the southwest by Hanoi City, to the north by Bac Giang province, and to the south by Hung Yen province. The provincial capital, Bac Ninh City, is located approximately 30 km northeast of central Hanoi. With an area of about 823 km², it is one of the smallest provinces in the country. The population is approximately 1.49 million.
2. Industrial parks in Bac Ninh province
Currently, Bac Ninh Province has 19 industrial parks:
- VSIP Bac Ninh Integrated Township & Industrial Park,
- Dai Dong-Hoan Son Industrial Park,
- Que Vo Industrial Park,
- Que Vo III Industrial Park,
- Yen Phong Industrial Park,
- Yen Phong 2C Industrial Park,
- Que Vo II Industrial Park,
- Tien Son Industrial Park,
- Nam Son-Hap Linh Industrial Park,
- Thuan Thanh Industrial Park,
- Thuan Thanh II Industrial Park,
- Dai Kim Industrial Park,
- Hanaka Industrial Park,
- Gia Binh Industrial Park,
- VSIP Bac Ninh II Industrial Park,
- Thuan Thanh III Zone A Industrial Park,
- Thuan Thanh III Zone B Industrial Park,
- Gia Binh II Industrial Park,
- Yen Phong 2A Industrial Park
3. Characteristics of Bac Ninh Province.
Bac Ninh Province is located near the border with China and is connected to China by railway. With well-developed expressways and national roads, as well as good access from Noi Bai International Airport, it has become a key logistics hub in Vietnam. Notably, the opening of the “Hanoi – Thai Nguyen Expressway” in 2014, which connects Hanoi to Thai Nguyen via Bac Ninh Province, reduced travel time from over two hours to approximately one hour.
4. Japanese manufacturing companies that have entered the market.
Major Japanese manufacturing companies that have entered Bac Ninh include Canon, Toyo Ink (Que Vo Industrial Park), Acecook, Sumitomo Electric (Tien Son Industrial Park), Foster Electric, and Suntory (VSIP Bac Ninh Industrial Park).
5. Living Environment
- Housing Situation: As mentioned earlier, the industrial parks in Bac Ninh Province are accessible from Hanoi, making apartments in Ba Dinh District, which is well-connected to Bac Ninh in northern Hanoi, a recommended choice. Ba Dinh District has many serviced apartments for foreigners, and the Japanese Embassy is also located in this district, adding to its convenience.
2. Restaurant Situation: There are not many Japanese restaurants in Bac Ninh Province, but within VSIP Bac Ninh, there is a Japanese-style izakaya called “Tama-ya,” which is also found in Hanoi. It is popular and bustling with Japanese workers from nearby factories during both lunch and dinner.
6. Summary
Bac Ninh Province, due to its geographical advantages, has attracted major foreign electronic and electrical companies such as Samsung Electronics, Canon, and Sumitomo Electric. As a result, many supporting industries that supply parts to these companies have also entered the region. The province is well-connected by a network of expressways, making it a commuter area for Hanoi, with only about a 30-minute drive to Noi Bai International Airport and around 2.5 hours to the border with China. This excellent location allows for reduced logistics costs, making it popular among foreign companies, and it is expected to continue attracting new investments in the future.
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.
