Hung Yen Rises as a Prime Destination for Foreign Investment in Vietnam in 2024

Hung Yen Province is cementing its position as a leading investment hub in Vietnam, thanks to an open investment environment, modern infrastructure, and a skilled labor force.

Also Read: Manufacturing in Hung Yen, Vietnam: Key Advantages and 2021-2030 Master Plan

Foreign investment into Hung Yen Province in 2024

With 588 foreign-invested projects, totaling over US$7.6 billion in registered capital, the province is attracting international attention, especially from major investors like Japan, China, and South Korea.

According to Trần Quốc Văn, Chairman of the Hung Yen Provincial People’s Committee, the province’s focus on administrative reform has been key in fostering a business-friendly environment. This strategy aligns with Plan No. 31/KH-UBND, implemented earlier this year, which aims to enhance the business landscape and improve provincial competitiveness.

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The province’s efforts have yielded impressive results. Between January-September this year, Hung Yen attracted new and adjusted capital totaling US$1.7 billion—the highest ever recorded for the region.

Thăng Long II Industrial Park, covering 525.7 hectares and developed by Japan’s Sumitomo Corporation, stands as a key example of Hung Yen’s success in attracting foreign direct investment (FDI). As of August 30, 2024, the park had secured nearly 110 FDI projects, with a total registered capital exceeding US$3.5 billion.

According to data from the Chairman of Hung Yen Provincial People’s Committee, Japan leads the way in foreign investment, contributing US$3.6 billion across 147 projects, accounting for 54 percent of the province’s total registered capital. China and South Korea follow with US$957 million and US$650 million in investments, respectively.

In 2023 alone, the province attracted over US$1 billion in investment.

Examples of large foreign invested projects in Hung Yen are stated below:

• Toto Vietnam Co., Ltd. – Hung Yen Branch has invested over US$370 million to manufacture sanitary equipment and related accessories.
• Hyundai Aluminium ViNa Joint Stock Company has committed more than US$205 million for the production of aluminum billets and products, including LCD/OLED TV frames and phone cases.
• Hoya Glass Disk Vietnam II Co., Ltd. has invested around US$200 million in the manufacturing, assembling, and processing of computers, internet, telecommunications, and information equipment.
• Mektec Manufacturing Co., Ltd. (Vietnam) has invested approximately US$200 million in printed circuit board manufacturing for electronic devices, as well as providing technical testing and analysis services.

Location of Hung Yen

Located in the heart of the Red River Delta, Hung Yen is emerging as one of Vietnam’s prime investment destinations. Situated just 60 kilometers from Hanoi, the province offers geographical advantages that are hard to beat. Bordering key districts like Kim Động and Tiên Lữ, and with the Red River forming a natural boundary, Hung Yen benefits from its proximity to major industrial centers, international ports, and airports. Its strategic location makes it highly accessible for trade and commerce.

Investment potential and infrastructure development

Hung Yen’s investment potential is amplified by its robust infrastructure, cost-effective operations, abundant human resources, and a transparent, investor-friendly environment. The province has continuously invested in developing world-class industrial parks, with 17 parks already in place, covering nearly 4,400 hectares. By 2030, this number is set to increase to 30 parks, alongside the expansion of four existing parks, spreading over 9,540 hectares, making the province a magnet for foreign and domestic investors alike. Looking ahead, Hung Yen has ambitious plans to continue its rapid development. These initiatives are part of a broader vision outlined in the provincial plan for 2021-2030, which seeks to transform Hung Yen into a modern, industrialized province with sustainable growth, a smart urban design, and a high quality of life.

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The province is also fostering a synchronized industrial ecosystem, particularly in high-tech and eco-friendly sectors. These parks, equipped with modern infrastructure, are designed to meet the specific needs of global investors. Notably, recent large-scale investments such as the US$114 million Hung Yen Alpha Logistics Park and Acecook Vietnam’s US$87.7 million food production project highlight the growing interest in the province.

Hung Yen’s leadership is also committed to creating the most convenient, safe, and efficient environment for businesses. Nguyễn Hữu Nghĩa, Secretary of the Hung Yen Party Committee, emphasized the province’s focus on administrative reforms, aiming for an investment environment that offers transparency, ease, and security. This commitment is reflected in the high satisfaction levels among current investors, like Acecook Việt Nam and Vinhomes JSC, which have both expanded their operations in the province due to the ease of doing business.

Also Read: Setting Up an FDI Company in Hung Yen Province, Vietnam

Future growth and strategic projects

With major infrastructure projects like the Ring Road 4, connecting Hung Yen with Hà Nội and Bắc Ninh, and the Hà Nội-Hải Phòng expressway, the province is set to become even more connected and attractive for investment. The master plan for Hung Yen’s development through 2030 envisions rapid, sustainable growth, with a focus on high-tech, low-carbon industries.

Industrial parks in Hung Yen province: Upcoming projects

To meet international standards, Hung Yen province is building large-scale industrial parks with modern infrastructure and eco-friendly designs, catering to global investors.

Hung Yen province has an ambitious plan to establish 35 industrial parks (IPs) by 2050, covering a total area of nearly 12,050 hectares. The province’s strategic location within the northern key economic zone, adjacent to Hà Nội and key industrial areas like Hải Dương, Hà Nam, and Bắc Ninh, makes it a prime destination for investors seeking a well-connected, industrialized environment.

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By 2030, the province will have 13 new parks. Notable industrial park developments include the Phù Cừ IP (544 hectares), Tiên Lữ-Kim Động-Ân Thi IP (460 hectares), and Ân Thi I IP (450 hectares). After 2030, an additional five parks are planned for development, including a large 1,400-hectare park in Kim Động-Khoái Châu.

Hung Yen’s focus is not only on expanding its industrial footprint but also on enhancing the quality and sustainability of its industrial parks. The province is prioritizing attracting high-tech industries, such as electronics, telecommunications, semiconductor chip production, and biotechnology. Emphasis is also being placed on environmentally friendly and high value-added industries, in line with the goal of becoming a modern industrial province by 2030.

As Hung Yen continues to enhance its investment environment and develop its industrial parks, it is set to play a vital role in Vietnam’s industrial and economic growth.

Conclusion

For investors seeking a dynamic, well-connected location with a strong commitment to sustainable and industrial development, Hung Yen offers a compelling opportunity. The province’s investment-friendly policies, combined with its strategic position and modern infrastructure, make it a cornerstone of Vietnam’s rapidly growing economy.

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