Groundbreaking ceremony for the Quang Tri Industrial Park, December 15, 2023. (Photo: VNA) Hanoi (VNA) - In a recent report by Nikkei Asia, the once comparatively sluggish North Central provinces of Vietnam are now witnessing a remarkable surge in investment activities.
Under the headline "Vietnam's lagging North-Central region sees investment boom," Nikkei Asia underscores the region's newfound momentum, attributing its investment appeal to both global economic dynamics and the concerted backing for development initiatives from Vietnam's leadership.
Shigeo Fukuda, head of Sumitomo Corp.'s department for developing industrial parks overseas, singled out Quang Tri Province as a particularly enticing investment destination because "it's easy to secure talent, and transport convenience will improve with the construction of a new airport."
Sumitomo is a prominent Japanese conglomerate renowned for its prowess in finance and industrial real estate. It recently kick-started an ambitious industrial park venture in Quang Tri province, marking a significant foray into the North Central region.
The Quang Tri Industrial Park Project (QTIP), a collaborative project between Sumitomo, the VSIP Group, and Thailand's Amata Bien Hoa Company, began on December 15, 2023, garnering considerable interest from approximately 20 prospective lessees.
This landmark endeavor represents Sumitomo's first industrial park venture in Vietnam's North Central corridor.
Besides Quang Tri, the region includes five other provinces: Thanh Hoa, Nghe An, Ha Tinh, Quang Binh and Thua Thien Hue.
Average monthly income in the North-Central region is about 30% to 40% below that in areas around Hanoi or Ho Chi Minh City, according to government data.
The low income levels indicate room for development in the North-Central region. Development in Southern Vietnam has long been driven by the garment and textile industry, and the northern areas have enjoyed economic growth fueled by investments from the Republic of Korea companies since the 2010s. Now the North-Central provinces have been busy attracting global companies, Nikkei Asia said.
Bolstered by strategic groundwork, these provinces are primed to attract substantial capital inflows, particularly from high-profile foreign investors eyeing dynamic projects with direct foreign investment (FDI) stakes.
WHA IZ Industrial Park 1 in Nghi Loc district, Nghe An province, is the largest and most modern industrial park in the North Central region of Vietnam. (Photo: VNA) In 2023, foreign investment in the North Central region reached approximately 2 billion USD, marking a 39% increase compared to the same period in 2022.
Notably, Nghe An Province emerged as a magnet for record-breaking investment, attracting 1.6 billion USD, a staggering 66.8% surge from 2022, positioning it as the 8th highest province nationwide. Specifically, investments poured into the Southeast Economic Zone totaled 1.595 billion USD.
Foxconn, a major Apple partner, made headlines with its plan to establish a new factory in Nghe An in November 2024. This decision prompted other businesses within Apple's supply chain to follow suit.
Radiant Opto-Electronics, based in Taiwan (China), also intends to set up a factory in Nghe An.
To drive investment attraction in 2024, North Central localities have laid out plans to accelerate administrative procedure reforms, provide support, and collaborate closely with businesses to attract foreign investment, maximize existing industrial zones, and promote the development of new industrial parks./.
