Overview and Current State of Industrial Parks in Hung Yen

Hung Yen Province, located in the Red River Delta region of northern Vietnam, covering an area of approximately 930km² and is home to over 1.2 million people. The province has been seeing steady population growth and industrial expansion over the decade[1]. Situated just about 40 kilometers southeast of Hanoi and roughly 100 kilometers from Hai Phong Port, Hung Yen is strategically positioned to support industrial activities with its easy access to transportation routes such as Hanoi–Hai Phong expressway, Hanoi-Hai Duong-Hai Phong railway – which connecting Hung Yen with Vietnam’s economics zone in the northern provinces. This favorable location has made it an important point for both domestic and international investment.

By 2023, Hung yen boasts about 9 major industrial parks, which include popular sites like Pho Noi A, Thang Long II, and Yen My II. These parks are focused on high value industries like electronics manufacturing, automobile components, textile and apparel. Notably, in 2023, the province attracted over 1 billion USD investment on building factory, manufacturing equipment, upgrading infrastructure, etc. The investors are mostly from major countries like Japan, China and Korea[2]. This increase in investment reflects Hung yen competitive advantages, including low labor cost – ranging around 250-300USD per month in 2024[3] – and housing prices in 2023 are 14 – 17% lower than those in Hanoi[4]. Additionally, the proximity to Hanoi offers an ideal alternative option for foreign companies that want to expand their business outside of the capital, where industrial land has become limited.

To further promote business and enhance competitiveness, Hung Yen People Council enact a Plan No. 31/KH-UBND in 2023[5]. This plan provides a series of incentives, such as tax breaks, land-use support, simplify investment procedures and reduce regulatory barriers, making it much easier and faster for foreign to establish operations in Hung Yen. With this preparation, the upcoming industrial park, including Kim Dong and the No. 3 Industrial Parks, are assured to attract more investors upon completion. In addition, by 2030, Hung Yen province aims to establish 5 new industrial parks with a total area of 2.5 thousand hectares, bringing the total number of industrial parks to 30[6].

List of Industrial Parks in Hung Yen

Source: B&C Complication

Recent Notable Investment Projects in Hung Yen’s Industrial Parks

In 2023 and beginning of 2024, many large foreign investment projects from Japan and Korea, especially in the field of manufacturing and processing industry have chosen the industrial parks in Hung Yen as the location to build factories and for investment.

• – Toto Vietnam Co., Ltd. invested over 370 million USD to manufacture sanitary equipment and related accessories for its factory in Thang Long II industrial park
• – Hyundai Aluminum Vina Joint Stock Company committed more than 205 million USD for aluminum production, including products like LCD/OLED TV frames and phone cases in Pho Noi A industrial park
• – Hoya Glass Disk Vietnam II Co., Ltd. invested around 200 million USD on manufacturing, assembling, and processing of computers and telecommunications equipment in Thang Long II industrial park
• – Mektec Manufacturing Co., Ltd. invested about 200 million USD in printed circuit board manufacturing for electronic devices and technical testing services in Thang Long II industrial park

Hung Yen’s Notable Foreign Industrial Parks

1. Pho Noi A Industrial Parks

Source: Hoa Phat Group Real Estate Exchange

2. Thang Long II Industrial Parks

Source: Thang Long II Industrial Parks

3. Yen My II Industrial Parks

Source: Hoa Phat Group Real Estate Exchange

Conclusion

Hung Yen Province has established itself as a strategic industrial center in northern Vietnam, attracting strong foreign investment with its competitive labor costs, low housing price and robust infrastructure. With government incentives such as tax breaks and simplified procedures, Hung Yen offers an attractive business environment. As new industrial parks continue to develop, the province is well-positioned as an ideal destination for both foreign and domestic investors in Vietnam’s dynamic market.

[1] Nhan Dan Newspaper (2024). Hung Yen Economy Reached More Than 8% <Assess>

[2] Vietnam Briefing (2024). Hung Yen Rises as Prime Destination for FDI in Vietnam <Assess>

[3] Vietnam Briefing (2024). Hung Yen Competitive Advantages <Assess>

[4]The Communist Party of Vietnam (2023). Hung Yen’s Important Role in Connecting Hanoi <Assess>

[5] Hung Yen People’s Council (2024). Solutions to Improve Business Environment and Improving Hung Yen Competitiveness <Assess>

[6] The Prime Minister (2024). Approving the Hung Yen Provincial Planning for the 2021-2030 period <Assess>

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