{"id":21266,"date":"2025-05-23T17:50:42","date_gmt":"2025-05-23T10:50:42","guid":{"rendered":"https:\/\/b-company.jp\/?p=21266"},"modified":"2025-05-27T11:56:47","modified_gmt":"2025-05-27T04:56:47","slug":"the-economic-situation-of-red-river-delta-provinces-after-the-provincial-level-administrative-units-mergers","status":"publish","type":"post","link":"https:\/\/b-company.jp\/ko\/the-economic-situation-of-red-river-delta-provinces-after-the-provincial-level-administrative-units-mergers\/","title":{"rendered":"\uc131 \ub2e8\uc704 \ud589\uc815 \ub2e8\uc704 \ud569\ubcd1 \uc774\ud6c4 \ud64d\uac15 \uc0bc\uac01\uc8fc \uc9c0\ubc29\uc758 \uacbd\uc81c \uc0c1\ud669"},"content":{"rendered":"
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B&Company is the first Japanese company specializing in market research and investment consulting in Vietnam since 2008.<\/em><\/p>\n

In this section “Vietnam Briefing”, young researchers of B&Company will provide timely information of Vietnam’s industrial trends, consumer trends, and social movements.<\/em><\/p>\n

This article is written in English and automatic translation is used for other language versions. Please refer to the English version for accurate content. 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. <\/em><\/p>\n<\/div>\n\t

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The Red River Delta is one of Vietnam\u2019s socio-economic epicenters, attracting investors with its dynamic growth and strategic location. Following the recent provincial-level administrative unit arrangement, which is set to take place by September 15, the region is poised to unlock new levels of efficiency, connectivity, and investment potential.<\/p>\n

Overview of the Red River Delta after the 2025 Administrative Unit Mergers<\/strong><\/h3>\n

The Red River Delta is a strategically important economic hub in northern Vietnam, comprising 11 provinces and cities. Under the provincial-level administrative restructuring outlined under Decision No. 759\/QD-TTg[1]<\/a>, the region has 2 unchanged administrative units, Hanoi City and Quang Ninh, along with 9 provinces and cities subjected to the merger: Bac Ninh, Hai Phong City, Hai Duong, Hung Yen, Thai Binh, Ninh Binh, Ha Nam, and Nam Dinh. As a result, the region will comprise 6 provincial-level administrative units[2]<\/a>, including 2 centrally-governed cities.<\/p>\n

Red River Delta\u2019s provincial-level administrative units after the 2025 administrative mergers<\/strong><\/p>\n

\"Red<\/em><\/p>\n

Source: B&Company<\/em><\/p>\n

The Red River Delta is one of Vietnam\u2019s two major economic centers alongside the Southeast region, contributing roughly 30% of Vietnam\u2019s total GDP in 2024. After the merging, the region will host several of the nation\u2019s top-performing local economies, including Hanoi, Hai Phong, Bac Ninh, and Quang Ninh. Despite global economic headwinds, the region sustained an impressive average GRDP growth rate of over 8%, with Hai Phong alone approaching 11% growth year-over-year.<\/p>\n

GRDP of Red River Delta provinces after the 2025 administrative mergers in 2024<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n
No.<\/strong><\/td>\nProvinces<\/strong><\/td>\nPopulation <\/strong><\/p>\n

(<\/strong>U<\/strong>nit: <\/strong>Thousand people)<\/strong><\/td>\n

Total Area (<\/strong>Unit: <\/strong>Km2<\/sup>)<\/strong><\/td>\nGRDP <\/strong><\/p>\n

(Unit: Billion VND)<\/strong><\/td>\n

Growth rate<\/strong><\/p>\n

(Unit: %)<\/strong><\/td>\n<\/tr>\n

1<\/td>\nHanoi City<\/td>\n8,718<\/td>\n\u00a03,360<\/td>\n\u00a01,426,000<\/td>\n6.5<\/td>\n<\/tr>\n
2<\/td>\nHai Phong City<\/td>\n4,103<\/td>\n\u00a03,195<\/td>\n\u00a0658,381<\/td>\n\u00a010.7<\/td>\n<\/tr>\n
3<\/td>\nBac Ninh<\/td>\n\u00a03,509<\/td>\n\u00a04,719<\/td>\n\u00a0439,000<\/td>\n\u00a09.6<\/td>\n<\/tr>\n
4<\/td>\nQuang Ninh<\/td>\n\u00a01,397<\/td>\n\u00a06,208<\/td>\n\u00a0347,500<\/td>\n\u00a08.4<\/td>\n<\/tr>\n
5<\/td>\nNinh Binh<\/td>\n3,819<\/td>\n3,943<\/td>\n\u00a0268,345<\/td>\n\u00a09.7<\/td>\n<\/tr>\n
6<\/td>\nHung Yen<\/td>\n3,208<\/td>\n\u00a02,515<\/td>\n\u00a0231,170<\/td>\n\u00a07.5<\/td>\n<\/tr>\n
Total<\/strong><\/td>\n\u00a024,754 <\/strong><\/td>\n\u00a023,938 <\/strong><\/td>\n3,374,396<\/strong><\/td>\n8.2<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source: <\/em>Resolution No. 60-NQ\/TW<\/em><\/a>, <\/em>Decision No. 759\/QD-TTg<\/em><\/a>, General Statistic Offices (GSO), Provincial Statistics Offices, B&Company synthesis<\/em><\/p>\n

Regional Economic Characteristics and Investment Situation of the Red River Delta<\/strong><\/h3>\n

According to Resolution No. 30-NQ\/TW[3]<\/a>, signed in 2022, the Red River Delta\u2019s economic structure is set to become increasingly diversified, with a strong emphasis on the services sector and the industry and construction sector. While the recent administrative mergers may introduce new economic dynamics, the region\u2019s overarching development orientation remains consistent:<\/p>\n

(1) Developing industrial belts<\/em><\/strong> to drive manufacturing and regional linkages;<\/p>\n

(2) Promoting sustainable and specialized agriculture, forestry, and aquaculture<\/em><\/strong> to enhance rural economies and food security;<\/p>\n

(3) Expanding major service hubs<\/em><\/strong>, particularly in finance, commerce, and logistics; and<\/p>\n

(4) Elevating tourism to a key economic sector<\/em><\/strong>, capitalizing on cultural heritage and natural landscapes.<\/p>\n

In 2024, the regional services sector was valued at over 1.5 trillion VND, accounting for 45% of the regional GDP. The industry & construction sector has also seen significant growth due to the city\u2019s shift from traditional agriculture and low-value services and the influx of foreign capital in sectors such as electronics, garments and textiles, automotive components, and logistics[4]<\/a>. In 2023, the region had 73 industrial parks and export processing zones, as well as 257 industrial clusters[5]<\/a>, attracting global giants like Samsung, LG, Foxconn, and Canon. In contrast, agriculture, forestry, and fishing comprised less than 5% of regional GDP. This sector is transitioning toward high-tech, large-scale production zones, focusing on key agricultural products, industrial livestock farming, and aquaculture tied to value-added branding.<\/p>\n

GRDP Composition of the Red River Delta in 2024<\/strong><\/p>\n

Unit: %
\n\"GRDP
\n<\/em><\/p>\n

Source: General Statistic Offices (GSO), Provincial Statistics Offices, B&Company synthesis<\/em><\/p>\n

The GRDP composition of Red River Delta provinces following the administrative mergers offers deeper insight into the region\u2019s geo-economic landscape. Hanoi City stands out as a leading services hub, driven by its centralized financial system, expanding retail sector, and fast-growing tourism industry that attracts both domestic and international visitors[6]<\/a>. On the other hand, Bac Ninh, after the merger with Bac Giang, had the highest share of the industry & construction sector in its regional GDP composition in 2024 at 69%. While industry and construction dominate much of the region, coastal provinces such as Hai Phong, Quang Ninh, and Ninh Binh display a more diverse economic structure, with higher contributions from services and agriculture\u2013forestry\u2013fishing sectors, benefiting from their strategic position for marine economy, logistics, and tourism development.<\/p>\n

GRDP composition by provinces in the Red River Delta post mergers in 2024<\/strong><\/p>\n

Unit: %
\n\"GRDP
\n<\/em><\/p>\n

Source: General Statistic Offices (GSO), Provincial Statistics Offices, B&Company synthesis<\/em><\/p>\n

The post-merged Red River Delta continues to be one of Vietnam\u2019s leading regions in attracting foreign direct investment (FDI), thanks to its strategic location, developed infrastructure, and industrial ecosystem. In 2024, the Red River Delta accounted for 55% of Vietnam\u2019s total registered FDI, with investment flows concentrated in high-tech manufacturing and supporting industries. Bac Ninh led with 6.4 billion USD in FDI, followed by Hai Phong City with 5.8 billion USD, while Hanoi recorded the highest number of FDI projects, totaling 7,600.<\/p>\n

New r<\/strong>egistered FDI capital in 2024 (Left) and Total accumulated registered FDI capital<\/strong> in 2024 <\/strong>(Right) by provinces of the Red River Delta<\/strong><\/p>\n

Unit: Billion USD
\n\"GRDP
\n<\/em><\/p>\n

Source: <\/em>MPI<\/em><\/a>, B&Company synthesis<\/em><\/p>\n

Potential Changes in Economic Development Orientation of Red River Delta Provinces Following Administrative Unit Mergers<\/strong><\/h3>\n

The recent administrative unit mergers in the Red River Delta mark a significant turning point in the region\u2019s economic geography. While Hanoi and Quang Ninh remain unchanged due to their established economic identities and administrative sufficiency, other provinces are undergoing major consolidations that could reshape local economic strategies, diversify the economic base by incorporating new elements from neighboring provinces, or further amplify existing regional strengths.<\/p>\n

Economic landscape and the development orientation of Red River Delta provinces after merging<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n
Provinces<\/strong><\/td>\nEconomic landscape<\/strong><\/td>\nPossible economic development orientation<\/strong><\/td>\n<\/tr>\n
Hanoi<\/td>\nWhile unchanged, Hanoi remains the center of Northern Vietnam\u2019s economy, playing a vital link in 4 out of 5 economic corridors. The growth of Hanoi\u2019s economy will further be amplified as surrounding localities grow in economic size and connectivity<\/td>\n\u00b7\u00a0\u00a0 Promoting trade, logistics, finance, and sustainable tourism;<\/p>\n

\u00b7\u00a0\u00a0 Developing high-tech and circular industries;<\/p>\n

\u00b7\u00a0\u00a0 Advancing high-tech agriculture.<\/td>\n<\/tr>\n

Hai Phong City<\/p>\n

Merged from:<\/u><\/em><\/p>\n

\u00b7\u00a0\u00a0 Hai Phong City;<\/em><\/p>\n

\u00b7\u00a0\u00a0 Hai Duong.<\/em><\/td>\n

The merger improves the sea logistics of Hai Phong City with Hai Duong\u2019s inland structure. It creates a synergized logistic infrastructure connecting with the regional industrial hubs<\/td>\n\u00b7\u00a0\u00a0 Prioritizing high-tech manufacturing sectors, including electronics, machinery, automotive, etc.<\/p>\n

\u00b7\u00a0\u00a0 Developing seaport and logistics services;<\/p>\n

\u00b7\u00a0\u00a0 Developing sea economy.<\/td>\n<\/tr>\n

Bac Ninh<\/p>\n

Merged from:<\/u><\/em><\/p>\n

\u00b7\u00a0\u00a0 Bac Ninh;<\/em><\/p>\n

\u00b7\u00a0\u00a0 Bac Giang.<\/em><\/td>\n

The merger creates a mega-industrial province, connecting the established industrial ecosystem in Bac Ninh to the labor markets and industrial land in Bac Giang<\/td>\n\u00b7\u00a0\u00a0 Developing high-tech manufacturing and processing industries, fueling by foreign investment capital<\/td>\n<\/tr>\n
Quang Ninh<\/td>\nWhile unchanged, Quang Ninh has a diversified economic structure, with a strong sea economy, tourism, and logistics. The merger gives Quang Ninh a better connection with the Red River Delta\u2019s economy while growing its sea economy with other coastal provinces<\/td>\n\u00b7\u00a0\u00a0 Developing high-tech manufacturing and processing industries;<\/p>\n

\u00b7\u00a0\u00a0 Promoting green industries and green energy sectors;<\/p>\n

\u00b7\u00a0\u00a0 Strengthening the logistics industry, elevating tourism to a key economic sector;<\/p>\n

\u00b7\u00a0\u00a0 Developing sea economy.<\/td>\n<\/tr>\n

Ninh Binh<\/p>\n

Merged from:<\/u><\/em><\/p>\n

\u00b7\u00a0\u00a0 Ha Nam;<\/em><\/p>\n

\u00b7\u00a0\u00a0 Nam Dinh;<\/em><\/p>\n

\u00b7\u00a0\u00a0 Ninh Binh.<\/em><\/td>\n

The merger creates a balanced economic zone with Ha Nam\u2019s industrial and logistics growth, Nam Dinh\u2019s traditional manufacturing, and Ninh Binh\u2019s tourism economy and agricultural resources<\/td>\n\u00b7\u00a0\u00a0 Developing sustainable tourism centering its heritage network;<\/p>\n

\u00b7\u00a0\u00a0 Prioritizing high-tech manufacturing sectors;<\/p>\n

\u00b7\u00a0\u00a0 Attracting foreign investment.<\/td>\n<\/tr>\n

Hung Yen<\/p>\n

Merged from:<\/u><\/em><\/p>\n

\u00b7\u00a0\u00a0 Hung Yen<\/em><\/p>\n

\u00b7\u00a0\u00a0 Thai Binh.<\/em><\/td>\n

The merger extends the economic base of Hung Yen with the marine economy, agriculture, and renewable energy of Thai Binh while strengthening its industry sector<\/td>\n\u00b7\u00a0\u00a0 Developing industrial belts near Hanoi City, focusing on high-tech industrial sectors;<\/p>\n

\u00b7\u00a0\u00a0 Expanding industrial zones toward coastal areas;<\/p>\n

\u00b7\u00a0\u00a0 Developing sea economy in connection with other coastal localities.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source: Economic planning of Red River Delta provinces, B&Company synthesis<\/em><\/p>\n

Conclusion<\/strong><\/h3>\n

The recent administrative mergers in the Red River Delta signal a strategic effort to enhance regional coordination, optimize resources, and boost economic growth. While Hanoi and Hai Phong continue to lead in services, logistics, and high-tech industries, the newly formed provinces are emerging as dynamic growth centers with diverse strengths, from manufacturing and agriculture to tourism and renewable energy. For foreign investors, this transformation offers expanded opportunities in a region that is becoming more integrated, efficient, and investment-ready.<\/p>\n

\n

[1]<\/a> TVPL. Decision No. 759\/QD-TTg approving the Proposal on Reorganization of Administrative Units at Various Levels and the Construction of a Two-Tier Local Government Structure <Source<\/a>><\/p>\n

[2]<\/a> For the analysis purposes under this article, we excluded Vinh Phuc in the regional analysis as the province will be merged with Phu Tho and Hoa Binh, two provinces from the Northern Midland and Mountainous region. We also included Bac Giang as the provinces is set to be merged with Bac Ninh.<\/p>\n

[3]<\/a> TVPL. under Resolution No. 30-NQ\/TW on the Socio-Economic Development and Ensuring National Defense and Security in the Red River Delta Region by 2030, with a Vision to 2045 <Source<\/a>><\/p>\n

[4]<\/a> Economy & Forecast Review. Promote regional advantages and accelerate the restructuring of economic sectors in the Red River Delta <Source<\/a>><\/p>\n

[5]<\/a> GSO. Vietnam Statistical Yearbook \u2013 2023 <Source<\/a>><\/p>\n

[6]<\/a> Economic & Urban Development. Hanoi: Retail Sales of Goods and Consumer Service Revenue Increase by 8.6% <Source<\/a>><\/p>\n

\u00a0<\/em><\/p>\n

 <\/p>\n

* If you wish to quote any information from this article, please kindly cite the source along with the link to the original article to respect copyright.<\/em><\/p>\n\n\n\n
B&Company<\/em><\/strong><\/p>\n

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.<\/p>\n

Please do not hesitate to contact us if you have any queries.<\/p>\n

info@b-company.jp<\/em><\/a>\u00a0+ (84) 28 3910 3913<\/strong><\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

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