Overview and Current State of Industrial Parks in Hanoi

Hanoi, the capital of Vietnam, stands as a vital economic and industrial hub in the northern region. Covering an area of approximately 3,359 km² and home to a population exceeding 8 million, Hanoi boasts a robust economy with consistent growth. In 2023, the city recorded an impressive 7% GRDP growth and nearly 3 billion USD in FDI. The compact city center is strategically bordered by the Red River to the east and north and a railway line to the west, enhancing its connectivity and accessibility. Hanoi benefits from 11 major highways radiating across the country[1] and Noi Bai International Airport supporting global trade. These infrastructural developments are set to further accelerate Hanoi’s industrial growth in the coming years.

By 2024, Hanoi is home to 9 industrial parks, with notable names such as Quang Minh, Phu Nghia and Thang Long. These parks cater to a wide range of industries, including electronics, automobile components, and consumer goods production. In the first quarter of 2023 alone, Hanoi’s industrial parks attracted nearly $100 million in investment, comprising 1 new project and 9 expansion projects, marking a 90% revenue increase compared to the previous year[2]. By 2023, Japan leads as the largest investor, accounting for 60% of registered capital, followed by major contributors from China, South Korea, and Singapore[3]. While Hanoi faces challenges such as limited land availability and high living costs, it offers a distinct advantage with its highly skilled labor force. The city hosts 85% of Vietnam’s universities, producing thousands of graduates annually from top educational institutions and vocational training centers[4], combined with modern infrastructure, Hanoi remains a highly attractive destination for investors.

Government support further bolsters Hanoi’s appeal. Policies like Decree No. 35/2022/ND-CP (2022)[5] provide incentives such as income tax exemptions, infrastructure development measures, land-use support, and streamlined administrative procedures. Looking ahead, Hanoi plans to construct three new industrial parks—Dong Anh, Bac Thuong Tin, and Phuc Hiep—by 2025, aiming to reach a total of 32 industrial parks by 2050, aligning with its long-term vision for sustainable growth[6].

List of Industrial Parks in Hanoi

Source: B&Company Complication

Some Notable Industrial Parks in Hanoi

1. Quang Minh Industrial Park

So

Source: RSL Group

2. Thang Long Industrial Park

Source: Thang Long Industrial Park

3. Nam Thang Long Industrial Park

Source: Kland Real Estate

4. Phu Nghia Industrial Park

Source: Vietnam Industrial Park Hub

Conclusion

Hanoi has firmly established itself as a strategic industrial hub in northern Vietnam, attracting substantial foreign investment with its skilled workforce, robust infrastructure, and strategic location. With government incentives such as tax breaks, streamlined procedures, and support for high-value industries, Hanoi offers a highly competitive business environment. As industrial parks continue to expand and modernize, the capital city remains a prime destination for both foreign and domestic investors looking to capitalize on Vietnam’s dynamic and growing market.

[1] Vietnam Urban Economics (2021) Hanoi 11 Critical Highway <Assess>

[2] Economics and Forecast Review (2024) Hanoi Current Industrials Parks Situation <Assess>

[3] The World and Vietnam Report (2024). Industrial Parks Promote Hanoi’s Economics <Assess>

[4]Blue Ocean Reality (2024). Hanoi Industrial Park is changing every day <Assess>

[5] The Government (2022) Regulation on Industrial Parks <Assess>

[6] Blue Ocean Reality (2024). Hanoi Industrial Park is changing every day <Assess>

Read other articles