Bac Ninh Attracts Most FDI in Vietnam During First 9 Months of 2024

October 10, 2024 Posted by Vietnam Briefing Reading Time: 3 minutes

Bắc Ninh province has emerged as a leader in foreign direct investment (FDI) attraction in Vietnam, securing over US$4.2 billion in investments from January to September 2024. This is largely attributed to the province’s robust investment climate, modern infrastructure, and a plentiful labor force, making it a prime destination for foreign investors.

According to the provincial Department of Planning and Investment, foreign investors injected US$1.56 billion into 339 projects in Bắc Ninh, reflecting a year-on-year increase of 82.2 percent in total investment and 28.4 percent in the number of projects. This surge demonstrates Bắc Ninh’s ability to draw significant interest from foreign investors, reaffirming its status as a key industrial hub in northern Vietnam.

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During the first nine months of the year, 147 FDI projects registered to adjust their investment capital, resulting in an additional US$2.68 billion being allocated. This adaptability highlights the province’s commitment to facilitating business growth and ensuring that foreign enterprises can thrive within its borders.

In September alone, Bắc Ninh granted investment licenses to nine new projects, totaling US$57.8 million in registered capital. Notably, one real estate project from Singapore accounted for US$44.7 million of this total, further illustrating the province’s appeal to international investors.

Currently, Bắc Ninh is home to more than 2,400 valid FDI projects, with a cumulative value of US$29.3 billion. This impressive portfolio showcases the province’s successful strategy in attracting and retaining foreign capital.

In addition to securing new investments, Bắc Ninh’s local leaders have actively engaged with major FDI firms, such as Samsung Vietnam, Canon Vietnam, and Goertek Vina, to address operational challenges and enhance the business environment.

Samsung Display Co., a subsidiary of South Korea’s Samsung, reportedly has plans to invest an additional US$1.8 billion in a new OLED manufacturing plant at Yen Phong industrial park in Bắc Ninh province. The facility will specialize in producing advanced organic light-emitting diode (OLED) displays for automotive and technology applications. This investment will increase Samsung’s total capital in Bắc Ninh to US$8.3 billion, up from US$6.5 billion.

Furthermore, the province has welcomed foreign diplomats and business delegations from countries including Azerbaijan, China, Germany, and Japan, who are exploring investment and collaboration opportunities.

About the province

Bắc Ninh, the smallest province by land area in Vietnam, is situated in the Red River Delta Region, forming part of the economic growth triangle with Hanoi, Hai Phong, and Quang Ninh. Located east of Hanoi, it shares borders with Bắc Giang, Hưng Yên, and Hải Dương provinces. The province benefits from a robust network of highways and waterways, enhancing its economic appeal. Its proximity to Noi Bai International Airport facilitates easy connectivity, reducing costs for the circulation of goods and services.

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According to the Vietnam Provincial Governance and Public Administration Performance Index (PAPI), which evaluates the performance of Vietnam’s 63 provincial governments, Bắc Ninh excelled in most categories, ranking third nationwide and first in the Red River Delta region. In 2023, the province achieved a score of 45.7 points on the PAPI index, with notable strengths in “Vertical Accountability” and “E-Governance,” where it ranked second nationally. However, it faced challenges in “Public Administrative Procedures” and “Environmental Governance,” where it ranked 23rd and 35th, respectively.

Summary

Bắc Ninh’s leadership in FDI attraction not only reflects its favorable economic conditions but also sets a benchmark for other provinces aiming to enhance their investment appeal. As the province continues to foster relationships with foreign investors and streamline business operations, it is well-positioned to sustain its growth trajectory in the coming years.

For in-depth guidance and comprehensive insights into business prospects in Bắc Ninh or other provinces of Vietnam, businesses and investors are encouraged to reach out to the professional experts at Dezan Shira and Associates Vietnam or email at Vietnam@dezshira.com.

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Dezan Shira & Associates assists foreign investors throughout Asia from offices across the world, including in Hanoi, Ho Chi Minh City, and Da Nang. We also maintain offices or have alliance partners assisting foreign investors in China, Hong Kong SAR, Dubai (UAE), Indonesia, Singapore, Philippines, Malaysia, Thailand, Bangladesh, Italy, Germany, the United States, and Australia.