Introduction to the Industrial Parks in Hung Yen

18 Nov 2024
Industrial Park Vietnam

By: B& Company

Latest News & Report / Vietnam Briefing

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*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 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

STT Industrial parks Total planed area (hectares)
1 Pho Noi A 689
2 Thang Long II 528
3 Yen My II 314
4 Yen My 280
5 Minh Duc 198
6 No. 5 193
7 Minh Quang 154
8 Clean Industrial Parks 143
9 Pho Noi Textile /Pho Noi B 122

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

Pho Noi A Industrial Parks

Source: Hoa Phat Group Real Estate Exchange

Name Pho Noi A Industrial Park
Location Km No.19, National Highway No.5, Hung Yen Province
Website https://hoaphatip.vn/en/industrial-park/pho-noi-a/
Investor Hoa Phat Hung Yen Industrial Parks Infrastructure Development Management Company Limited
Year of Operation 2004 – 2054
Planned Area 689 hectares
Rental Area 492 hectares
Occupancy Rate 90% (2024)
Rental Price 130 USD/m2
Number of Active Companies 171 companies (2024)
Fields of Active Companies Industrial and electrical manufacturing, automobile components, food and beverages, agricultural products, etc.
Primary Country of Featured Companies Vietnam
Notable Companies Hoa Phat Group (Vietnam), Ngoc Diep (Vietnam), Daido (Japan), Viet Nhat (Vietnam), Thang Long (Vietnam)

  1. Thang Long II Industrial Parks

Thang Long II Industrial Parks 

Source: Thang Long II Industrial Parks

Name Thang Long II
Location Yen My District and My Hao Town, Hung Yen Province
Website https://tlip2.com
Investor THANGLONG2-IP-HY
Year of Operation 2006 – 2056
Planned Area 528 hectares
Rental Area 401 hectares
Occupancy Rate 96% (2024)
Rental Price 140 USD/m2
Number of Active Companies 55 companies (2024)
Fields of Active Companies Industrial and electrical manufacturing, automobile components, food and beverages, pharmaceutical products, etc.
Primary Country of Featured Companies Japan
Notable Companies Toyota (Japan), Panasonic (Japan), Toto (Japan), Hoya (Japan), Nikkiso (Japan)

  1. Yen My II Industrial Parks

Yen My II Industrial Parks

Source: Hoa Phat Group Real Estate Exchange

Name Yen My II
Location Yen My District, Hung Yen province, Viet Nam
Website https://hoaphatip.vn/en/industrial-park/yen-my-ii/
Investor Hoa Phat Hung Yen Industrial Parks Infrastructure Development Management Company Limited
Year of Operation 2015 – 2065
Planned Area 314 hectares
Rental Area N/a
Occupancy Rate 31% (2024)
Rental Price 130 USD/m2
Number of Active Companies 45 companies (2024)
Fields of Active Companies Logistics, Industrial and electrical manufacturing, food and beverages, pharmaceutical products, agricultural products, etc.
Primary Country of Featured Companies Vietnam, South Korea
Notable Companies Goldsun Group (Vietnam), Simon Electric (South Korea), Hoa Phat Group (Vietnam), Korea Electrical (South Korea), TechVina (Vietnam)

 

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>

 

B&Company, Inc.

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