Introduction to the Industrial Parks in Hanoi

20 Nov 2024
Hanoi Industrial park

By: B& Company

Latest News & Report / Vietnam Briefing

Comments: No Comments.

*In this column “Vietnam Briefing“, young researchers from B&Company will provide timely information of Vietnam’s industrial trends, consumer trends, and social movements.

Although we strive to ensure the accuracy of the original information, please check separately for each information. Interpretations and future prospects are the personal opinions of each researcher.

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

STT Industrial parks Total planed area (hectares)
1 Quang Minh 344
2 Thang Long 274
3 Nam Thang Long 261
4 Phu Nghia 170
5 Thach That 150
6 Noi Bai 114
7 Sai Dong B 97
8 Phung Xa 84
9 Dai Tu 40

Source: B&Company Complication

Some Notable Industrial Parks in Hanoi

1. Quang Minh Industrial Park

SoQuang Minh Industrial Park

Source: RSL Group

Name Quang Minh Industrial Park
Location Quang Minh town, Me Linh District, Hanoi
Website N/a
Investor Nam Duc Infrastructure Investment and Development Company Limited
Year of Operation 2003 – 2053
Planned Area 344 hectares
Rental Area N/a
Occupancy Rate 100% (2024)
Rental Price 135 USD/m2
Number of Active Companies 181 companies (2024)
Fields of Active Companies Industrial and electrical manufacturing, food and beverages, home appliances, jewelries, etc.
Primary Country of Featured Companies South Korea, Japan
Notable Companies BLD Vina (South Korea), Synopex Vietnam (South Korea), Nippon Pain (Japan), Viet Han Mechanical and Trading (Vietnam), Taiyo Ink (Japan)

2. Thang Long Industrial Park

Thang Long Industrial Park

Source: Thang Long Industrial Park

Name Thang Long Industrial Park
Location Kim Chung commune, Dong Anh district, Hanoi
Website https://tlip1.com/en/industrial-park/
Investor Sumitomo Corporation and Dong Anh Licogi Mechanical Joint Stock Company
Year of Operation 1997 – 2047
Planned Area 274 hectares
Rental Area 213 hectares
Occupancy Rate 100% (2024)
Rental Price 150 USD/m2
Number of Active Companies 101 companies (2024)
Fields of Active Companies Industrial and electrical manufacturing, automobile components, circuit components, household appliances, etc.
Primary Country of Featured Companies Japan
Notable Companies Panasonic (Japan), Toshiba (Japan), Yamaha (Japan), SEI Electronic (Japan), Sumitomo (Japan)

3. Nam Thang Long Industrial Park

Nam Thang Long Industrial Park

Source: Kland Real Estate

Name Nam Thang Long Industrial Park
Location Thuy Phuong Ward, Bac Tu Liem District, Hanoi
Website N/a
Investor Huaic Infrastructure Development Corporation
Year of Operation 1999 – 2049
Planned Area 261 hectares
Rental Area N/a
Occupancy Rate 100% (2024)
Rental Price 135 USD/m2
Number of Active Companies 67 companies (2024)
Fields of Active Companies Industrial and electrical manufacturing, automobile components, computer components, etc.
Primary Country of Featured Companies Japan
Notable Companies Cannon (Japan), Panasonic (Japan), Nissei Electric (Japan), Sumitomo Electric (Japan), Yokowo (Japan)

 

4. Phu Nghia Industrial Park

Phu Nghia Industrial Park

Source: Vietnam Industrial Park Hub

Name Phu Nghia Industrial Park
Location Phu Nghia Commune, Chuong My district, Hanoi
Website N/a
Investor Phu My Group Join Stock Company
Year of Operation 2008 – 2058
Planned Area 170 hectares
Rental Area 102 hectares
Occupancy Rate 100% (2024)
Rental Price 100USD/m2
Number of Active Companies 58 companies (2024)
Fields of Active Companies Industrial and civil construction, Mechanic and fabrication engineer, Infrastructure manufacturing electrical installation, etc.
Primary Country of Featured Companies Vietnam
Notable Companies Vietnam – Sweden Wine (Vietnam), Toyota Electric (Japan), Hapulico (Vietnam), Che Wah (Ma cau), Minh Duc Petra (Vietnam)

 

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>

 

B&Company, Inc.

The first Japanese company specializing in market research in Vietnam since 2008. We provide a wide range of services including industry reports, industry interviews, consumer surveys, business matching. Additionally, we have recently developed a database of over 900,000 companies in Vietnam, which can be used to search for partners and analyze the market.

Please do not hesitate to contact us if you have any queries.

info@b-company.jp + (84) 28 3910 3913

 

Read other articles

 

  • All
  • Agriculture
  • Business Matching
  • Construction & Real Estate
  • Economic
  • Energy
  • Entertainment & Media
  • Environment
  • Food & Beverage
  • Investment
  • IT & Technology
  • Personal care
  • Retail & Distribution
  • Seminar
Sidebar:
SUBSCRIBE NEWSLETTER