Vietnam industrial zone - Challenges when investing in Vietnam

investment Sep 18, 2020

In the development trend of the economy, the expansion of investment in the construction of Vietnam industrial zone is an inevitable trend. In particular, hi-tech industrial zone and Vietnam industrial zone are always expected to create great economic and technological values. However, this investment of businesses is not easy. In fact, businesses face difficulties when investing to rent factories in high-tech park.

vietnam industrial zone

More and more enterprises choose factory in hi-tech Vietnam industrial zone

What is Vietnam industrial zone and hi-tech industrial zone?

In the development trend of the economy, the expansion of investment in the construction of hi-tech industrial zone Vietnam industrial zone is an inevitable trend. In particular, they are expected to create great economic and technological value. However, this investment of businesses is not easy. In fact, businesses face difficulties when investing to rent a factory here.

Being in a multi-function economic-technical, hi-tech Vietnam industrial zone with a defined boundary and established by the Prime Minister's decision. These activities attract domestic and foreign resources.

Vietnam industrial zone map

Economy - Society - Environment is the top three criteria when distributing industrial zone in Vietnam. Vietnam industrial zone map is a special map showing details of locations, names, and the number of the industrial zone. Besides, data such as manufacturing industries and the scale of each industrial zone is also explicitly shown.

Before deciding to choose a factory for rent, businesses require to understand the industrial zone map to analyze conditions such as weather, environment, labor resources, consumer market, units renting factories.

vietnam industrial zone Kizuna

Vietnam industrial zone's map

List of the largest industrial zone in Vietnam in three regions

According to the update, by 2020, Vietnam industrial zones are in three areas, namely:

Vietnam Industrial zone in the North

- 125 industrial parks in 21 provinces

- Song Khe - Noi Hoang Industrial Park, Luong Son Industrial Park, Mai Son Industrial Park, Luong Son Industrial Park, Song Cong Industrial Park, Phu Ninh Industrial Park, Long Binh An Industrial Park, Dong Pho Moi Industrial Park, Southeast Industrial Park, etc.

Vietnam Industrial zone in the Central

- 56 industrial parks in 11 provinces

- Bim Son Industrial Park - North Zone A, Lam Son Industrial Park, Cua Lo Industrial Park, Ha Vang Industrial Park, Gia Lach Industrial Park, North Dong Hoi Quang Binh Industrial Park, Quan Ngang Industrial Park, Tu Ha Industrial Park, Phong Thu Industrial Park, Hoa Cam 2 Industrial Park, Hoa Ninh Industrial Park, etc.

Vietnam Industrial zone in the South

- 183 industrial parks in 19 provinces and cities

- Sonadezi Chau Duc Industrial Park, Hiep Phuoc Industrial Park, Tan Phu Trung Industrial Park, Dong Nam Industrial Park, Phuoc Dong Industrial Park, Tan Phu Dong Nai Industrial Park, Ong Keo Industrial Park, Bau Xeo Industrial Park, Loc An - Binh Son Industrial Park, Long Duc Industrial Park, Long Khanh Industrial Park, Giang Dien Industrial Park, etc.

vietnam industrial area

Vietnam industrial zones are potential with foreign investors

The industrial zone in Vietnam is potential due to the factory infrastructure and architecture

Vietnam is rapidly and strongly integrating into the international economy, carrying many breakthroughs and chances for the industry. Notably, after Vietnam joined the WTO, many industries have initiated a new development path. Therefore, the quality and quantity of Vietnam industrial zone are focused on. Many standard workshops have great infrastructure and a variety of accompanied services.

Potential Vietnam industrial park developed by the community of FDI enterprises

Vietnam industrial zone are potential due to surrounding roads and traffic

Not only focusing on infrastructure, but traffic around Vietnam industrial zone is also being invested, upgraded significantly. Urban planning, restructuring, and upgrading transport facilities are the solutions being executed in Vietnam industrial zone. That has a positive impact on the transportation of goods between regions, provinces and to export and import ports.

Potential Vietnam industrial zone developed by FDI enterprises community, easy-to-connect trading

In Vietnam, considerably developed industries such as manufacturing, electronics, chemicals-rubber-plastic and refined food processing, etc. are currently growing steadily, renovating equipment, and enhancing quality.

Particularly, the community of FDI enterprises is valued to be developing, facilitating easy-to-connect trading between industries, companies, stimulating economic development in general, and industrial zone services in Vietnam in particular.

The expense for industrial zone services in Vietnam

According to the latest statistics of “Investing Asia Industrial Park Guide” of Thanh Nien Publishing House, the price of Vietnam industrial park is divided into 3 areas:

- Area 1: VND 4,420,000 ($ 190)/ month

Hanoi, Hai Phong, Ho Chi Minh, Dong Nai, Binh Duong, Ba Ria - Vung Tau.

- Area 2: VND 3,920,000 ($ 168)/ month

Suburban Hanoi, Hai Phong, Hai Duong, Hung Yen, Vinh Phuc, Bac Ninh, Quang Ninh, Viet Tri - Phu Tho, Lao Cai, Nam Dinh, Ninh Binh, Thua Thien Hue, suburban Da Nang, Nha Trang, Da Lat, Phan Thiet, Dong Nai, Can Gio, suburban Binh Duong, suburban Ba Ria - Vung Tau, Ben Tre, Long An, Can Tho, Kien Giang, An Giang, Tra Vinh, Ca Mau, Quang Binh.

- Area 3: VND 3,430,000 ($ 147)/ month

Suburban Hai Duong, suburban Vinh Phuc, Phu Tho, Bac Giang, Quang Ninh, Lao Cai, Thai Nguyen, Hoa Binh, Nam Dinh, Ha Nam, Nghe An, Thanh Hoa, Thua Thien Hue, Quang Nam, Quang Ngai, Phu Yen, Khanh Hoa, Lam Dong, Binh Phuoc, Tay Ninh, Ba Ria - Vung Tau, Tien Giang, Hau Giang, Soc Trang, Kien Giang and Ca Mau.

Difficulties in renting a factory in Vietnam industrial zone

Difficulties in price

Factory rental cost is definitely not affordable for investors. Because facilities in high-tech parks often have more scale and methodical investment, the prices are also adequate. Normally, the rental price in other industrial zones in Vietnam usually ranges from 2 USD ~ 4 USD / m2 / month. In hi-tech large industrial zone in Vietnam will range from 5 USD ~ 6 USD m2 / month or higher. Therefore, price factors are one of the difficulties for businesses.

So not all businesses are eligible to rent factories in these areas. Normally, only high-potential enterprises can hire in Vietnam industrial zone.

vietnam industrial park

Difficult to find small land in Vietnam industrial zone

Because it was built with the purpose of implementing projects of size and quality, it is difficult to find small areas for renting in CNCs. The area in CNC zones is usually from 1000m2 to several tens of thousands of square meters. So if businesses want to rent an area as small as 100-500m2, the CNC area is not an option. For this reason, developers in CNCs have lost a large number of customers in the small segment.

Restricting occupations in the hi-tech industrial zone and Vietnam industrial park

In fact, the high-tech park in Vietnam industrial zone is not for all industries can operate. Because of strict requirements, regulations on facilities and operating properties, it is only suitable for certain industries. These include information technology, biotechnology, new materials technology, and automation technology. According to the Law on High Technology, the industries in these 4 areas are given priority to invest in development. Other industries are not encouraged to operate in Vietnam industrial zone because of their specific characteristics. Doing this both avoid risks for these businesses and increases development opportunities for other suitable businesses.

vietnam industrial area

Source: Vietnam industrial zone


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