Industrial Park in Nghe An Province

Industrial Park in Nghe An Province

Nghe An is the largest province in Vietnam, covering an area of 16,490 km², and is located in the North Central region. Nghe An boasts picturesque natural landscapes and has produced numerous historical figures, scholars, scientists, and cultural icons such as Mai Hac De and poet Ho Xuan Huong. Notably, Nghe An is the birthplace of President Ho Chi Minh, the great leader of the Vietnamese nation, a prominent patriot, a world-renowned cultural figure, and a national liberation hero.

Nghe An has a well-developed infrastructure and service system, along with a large and rapidly growing population that receives strong educational investments. More than 24,000 students graduate annually from seven universities, six colleges, and four professional secondary schools in the province.

According to the Nghe An provincial government, the province’s educational and training institutions can supply a high-quality workforce for investment and development projects. Additionally, Nghe An presents a large consumer market for all kinds of goods and services. The total workforce in the province exceeds 2 million people, with 42% having received professional training and 32% possessing technical skills.

Nghe An’s Competitive Advantages

Nghe An possesses several unique advantages. Geographically, it is located along the North-South transportation corridor, encompassing roads, railways, seaways, and air routes. The province is also part of the East-West Economic Corridor, connecting Myanmar, Thailand, Laos, Vietnam, and the East Sea via National Highway 7 to Cua Lo Port. Additionally, it is positioned along key national and international tourism routes (e.g., the trans-Vietnam route and the Vinh – Plain of Jars – Luang Prabang – Vientiane – Bangkok route via National Highways 7 and 8).

With such a strategic location, Nghe An plays a vital role in economic, trade, tourism, and logistics connections with Vietnam and other regional countries, especially Laos, Thailand, and China, providing favorable conditions for economic and social investment.

Moreover, the province has extensive agricultural land, with over 195,000 hectares for cultivation and an additional 580,000 hectares of unused hilly and mountainous land. Nghe An’s rich forest and marine resources offer a variety of high-economic-value plants and animals. Although the weather can be harsh, the climate is still suitable for cultivating crops such as rice, peanuts, sesame, sugarcane, pineapples, bananas, and various fruit trees like coffee, rubber, oranges, longans, and mangoes.

Industrial Real Estate Investment Attraction

Nghe An has significant advantages in attracting industrial real estate investment. With numerous industrial parks expanding and infrastructure being comprehensively developed, Nghe An’s industrial real estate market is becoming a magnet for investors, making the province a rising economic hotspot. Currently, Nghe An has 50 industrial parks and clusters, yet they still do not meet the growing demand from businesses. Of the 11 planned industrial parks, 10 have been zoned, covering a total area of 4,726.46 hectares (excluding Phu Quy Industrial Park, which has yet to be planned). At present, 10 industrial parks in the province are operational, with synchronized technical and social infrastructure investments.

The province’s industrial real estate market is further strengthened by policies focused on economic recovery and infrastructure development, such as the Ninh Binh – Bai Vot Expressway project, which was expected to open in 2022 and reduce travel time from Nghe An to Hanoi to approximately three hours.

Geographical Location

Nghe An Province is located in the North Central region of Vietnam and shares borders with:

The East: East Sea
The West: Xieng Khouang Province, Laos
The Southwest: Borikhamxay Province, Laos
The Northwest: Houaphanh Province, Laos
The South: Ha Tinh Province
The North: Thanh Hoa Province

Administrative Units

Nghe An Province consists of 21 administrative divisions, including:

1 city: Vinh
3 towns: Cua Lo, Hoang Mai, Thai Hoa
17 districts: Anh Son, Con Cuong, Dien Chau, Luong Son, Hung Nguyen, Ky Son, Nam Dan, Nghia Dan, Nghi Loc, Que Phong, Quy Chau, Quy Hop, Quynh Luu, Tan Ky, Thanh Chuong, Tuong Duong, Tan Ky
460 commune-level divisions: 411 communes, 32 wards, and 17 townships

Population and Education

Nghe An is a large province with a significant and unevenly distributed population. As of the 2019 census, Nghe An had a population of 3,327,791, making it the fourth most populous province in Vietnam, with an average growth rate of 0.87%. The province is home to 37 ethnic groups and foreign residents, including Thai and Muong people, alongside the dominant Kinh ethnic group.

Nghe An prioritizes education and has achieved significant progress. The province consistently ranks among the top nationwide in education quality, including general, vocational, and higher education. UNESCO has recognized Vinh City as a “Global Learning City.” By 2020, the province had:

528 preschools with 46,000 nursery students and 140,000 kindergarten students
530 primary schools with approximately 250,000 students
384 secondary schools with about 180,000 students
91 high schools with roughly 100,000 students
21 continuing education centers, 4 professional secondary schools, 6 colleges, and 7 universities

Healthcare System

Nghe An’s healthcare system includes:

7 functional departments under the Department of Health
2 sub-departments and 46 public medical facilities
460 commune-level health stations
2,883 private medical establishments
33 hospitals

Vinh City alone has over 20 hospitals, including Vinh International Hospital, the largest private hospital in the city, with more than 1,900 beds, highly qualified medical staff, and state-of-the-art equipment, including a 128-MSCT scanner. Emergency services operate 24/7.

Transportation Infrastructure

Nghe An is centrally located in the North Central region, serving as a key transportation hub for North-South and East-West connectivity. The province integrates road, railway, waterway, and air transportation systems, facilitating trade and economic exchange.

Road Network Nghe An is traversed by major highways, including National Highway 1A, Ho Chi Minh Highway, and Asian Highway 1 (AH1), linking the province to Hanoi and the southern provinces. Other key routes such as Highways 7, 15, 46, and 48 connect western Nghe An to Laos and its four international border gates.

Railway The North-South railway runs 94 km through Nghe An, connecting Hanoi and Ho Chi Minh City. Vinh Railway Station, a Class-1 station, is one of Vietnam’s largest cargo and passenger transport hubs.

Seaports Nghe An has three operational seaports and two deep-water ports under construction:

Vissai Port serves cement and clinker exports, accommodating vessels from 3,000 to 70,000 tons.
DKC Oil and Gas Terminal has a storage capacity of 86,000m³ and a 1.5 km-long pier.
Cua Lo Deep-Water Port is being built to handle ships up to 100,000 tons.

Aviation Vinh International Airport, managed by the Airports Corporation of Vietnam, has been upgraded to handle up to 3 million passengers per year, with 28 check-in counters and four boarding gates.

ECONOMIC OVERVIEW OF 2020 AND THE FIRST HALF OF 2021

The year 2021 was extremely challenging due to the impact of the Covid-19 pandemic, which greatly affected the socio-economic situation, especially the livelihoods of people. However, with the efforts of the entire political system, the province successfully implemented and achieved many socio-economic goals and tasks in 2021.

Nghe An’s economy maintained growth momentum, with the Gross Regional Domestic Product (GRDP) reaching 6.2% in 2021.
The total provincial budget revenue exceeded VND 18,000 billion, achieving 128.6% of the adjusted estimate and 101.2% compared to 2020.
The province granted 115 new projects and adjusted 147 existing ones, with the total newly registered and additional investment capital exceeding VND 39,300 billion. The number of projects increased by 41.97%, and the total investment capital grew 3.16 times compared to the same period in 2020.
The total import-export turnover exceeded USD 3 billion, with export turnover alone reaching over USD 1.9 billion.

Entering 2022 in a challenging context with the Covid-19 pandemic still evolving, the provincial People’s Committee set high socio-economic development targets. The GRDP growth target was set at 8.5-9.5%, aiming to achieve the term goal of 9.5-10.5%.

INVESTMENT ATTRACTION

Besides having well-developed transportation and industrial park infrastructure, Nghe An also offers favorable conditions for investment attraction. In 2021, the province granted 115 new projects and adjusted hundreds of investment projects, with a total newly registered and additional investment capital of VND 28,072.80 billion. This represented a 41.33% increase in the number of projects and a 2.92 times increase in total registered investment capital compared to the same period in 2020.

Major Corporations and Investors

Many major corporations and investors have explored investment opportunities in Nghe An, including Nha Trang Bay Investment and Construction JSC, APEC Group, Huali Group, Mobifone Group, Zuru Group, Viettel Group, Vinh Central Investment JSC, Vietnam Tobacco Corporation, and AEON Mall Group. This success results from the province’s continuous efforts to improve the investment and business environment, working alongside enterprises and investors.

To date, Nghe An has attracted over 740 projects with a total registered investment capital exceeding VND 107,000 billion. In terms of Foreign Direct Investment (FDI), the province currently has 102 effective FDI projects with a total investment of more than USD 1,449.52 million. Some major corporations from Hong Kong and Taiwan have invested in the manufacturing and electronics industries, including renowned brands like Luxshare-ICT, Goertek, Everwin, and Ju Teng. Some newly approved large-scale projects include:

Everwin Electronic Components Factory in VSIP Nghe An Industrial Park (USD 200 million);
Goertek 2 Electronics and Multimedia Equipment Manufacturing Plant (USD 35 million);
Hoang Mai 1 Industrial Park (VND 750 billion);
Phase II expansion of WHA Industrial Zone by an additional 354.5 hectares.

Investment Targets for the 2021-2025 Period

Nghe An prioritizes focused and strategic investment attraction, with key investment hubs being the Southeast Economic Zone and major industrial parks. The province gives priority to three industrial parks:

VSIP Nghe An (VSIP Group);
WHA Industrial Zone 1 – Nghe An (Hemaraj Group, Thailand);
Hoang Mai I (Hoang Thinh Dat Group).

These three modern and well-developed industrial parks are expected to serve as key investment destinations, capturing the shifting investment wave into Vietnam and particularly Nghe An.

Recently, Goertek Group (Hong Kong, China) increased its investment in an electronics, networking equipment, and multimedia audio manufacturing plant at WHA Industrial Park, raising its capital from USD 100 million to USD 500 million. This is a promising signal that paves the way for Nghe An to continuously attract FDI inflows.

As a result, Nghe An aims to attract 550-600 projects during the 2021-2025 period, with a total investment capital of VND 130-150 trillion. Of this, FDI is expected to range between USD 3-3.5 billion.

ECONOMIC LANDSCAPE 2026 – 2030

Development Goals for 2026 – 2030:

Transition towards a deep-growth development model aligned with integration and modernization trends. Priority is given to attracting investment in high-tech industries and core digitalization fields (Biotechnology, Nanotechnology, 3D printing, new materials, etc.).
The average industrial production value growth rate is targeted at 17-18% per year, while the average value-added growth rate is expected to reach 14-15% per year.
The industrial and construction sector is projected to account for 44-45% of the province’s total economic output. The economic structure will shift towards advanced and high-quality industrialization and modernization.
100% of operational industrial parks and industrial clusters will have centralized wastewater treatment systems meeting environmental standards.

INDUSTRIAL CLUSTER SCALE In 2021, based on the assessment of the implementation of the industrial cluster development plan for the 2014-2020 period, the province approved 53 centralized industrial clusters. However, some clusters were found to be unsuitable or unable to attract investors, necessitating a reassessment to remove or add new ones. After adjustments, Nghe An now has 59 industrial clusters with a total area of 1,800.89 hectares, an increase of 790 hectares compared to the previous period.

38 industrial clusters were retained and expanded.
21 new industrial clusters with a total area of 790.87 hectares were added to the plan up to 2030.

INDUSTRIAL DEVELOPMENT ADVANTAGES OF NGHE AN

Nghe An has significant potential for industrial development, boasting the largest land area in Vietnam (16,490 km2) and ranking fourth in population size with over 3.3 million people. The working-age population exceeds 2 million (about 60%), making it a crucial economic hub in the North Central region, strategically positioned on the main North-South transportation axis with a well-developed transport infrastructure, including roads and railways.

The province has numerous advantages for industrial growth, particularly in key and priority industries. Over the years, Nghe An has implemented various policies to promote industrial development, achieving initial successes. These efforts are crucial in transforming the province into an industrialized region aligned with sustainable environmental protection.

Strategic Location: Nghe An, as the largest province in Vietnam with the fourth-largest population, takes pride in its strategic position for attracting investment and production, contributing significantly to Vietnam’s development. With Vinh City as its central hub, Nghe An serves as the economic and cultural center of the North Central region. The province has 82 km of coastline, an international airport, high-quality national highways, three deep-water ports, and a first-class railway station. Additionally, it has four border gates with Laos, facilitating easy road connections. The closest border gate, Thanh Thuy International Border Gate, is only 45 km from Vinh City.
Abundant Workforce: With over 2 million people in the working-age group, accounting for more than 60% of the total population, Nghe An offers a plentiful labor force to meet investor demands.
Comprehensive Infrastructure and Services: Nghe An is among the few provinces with diverse infrastructure and services tailored for investors. The city’s daily and industrial energy needs are reliably supplied by the national power grid. Clean water is available at a capacity of 80,600 m3 per day, serving Vinh City and surrounding areas, with plans to expand capacity to 150,000 m3 by 2025. The province also boasts a robust banking and financial service network ready to support all investor needs.
Positive Investment Environment: Nghe An has made significant efforts to improve its investment and business climate. The province effectively implements the motto “The government always accompanies enterprises” by facilitating direct dialogues between authorities and businesses to address investor concerns. Additionally, administrative reforms and preferential policies have been actively implemented to create the most favorable conditions for enterprises to explore investment opportunities and execute effective projects in the province.