Recently, Quang Ninh has surpassed Hanoi and Ho Chi Minh City to become the locality attracting the highest foreign direct investment capital in Vietnam in 2023, according to Nikkei Asia. Specifically, according to the General Statistics Office, in 2023, the amount of FDI capital that foreign investors invested in Quang Ninh reached about 3.1 billion USD, leading the country. Thai Binh is ranked second with a total registered investment capital of about 2.68 billion USD. Next is Bac Giang with 1.53 billion USD. In 2024, the amount of FDI poured into Quang Ninh is expected to continue to exceed 3 billion USD for the second consecutive year.
With its geographical location right next to China, in the context of the escalating US-China trade war, Quang Ninh has begun to attract attention from foreign businesses and is considered one of the best locations for businesses to diversify their supply chains.
In addition, thanks to its abundant mineral resources, the number of LNG and wind power plants in the province has also increased recently, reflecting a major shift in the energy sector. Besides, projects in industries such as solar photovoltaic technology, electronics and petrochemicals are also expanding in the province.
One of the typical projects is the photovoltaic technology project of Jinko Solar PV Vietnam, with a total registered capital of over 34.65 trillion VND (1.5 billion USD).
In addition, the opening of Lach Huyen International Port (Hai Phong) in 2018 has contributed to creating momentum for the city and neighboring areas, including Quang Ninh. Not only that, Highway 04 connecting Hanoi – Hai Phong as well as Highway 06 Hai Phong – Mong Cai also contributed to creating opportunities for Quang Ninh to develop.
According to Nikkei Asia, in the past, Hanoi and Ho Chi Minh City were known as the two investment centers of Vietnam. However, in recent years, labor costs and land rental prices in industrial parks in these two major cities have skyrocketed.
Specifically, according to Sufex Trading, rental costs in industrial parks in Hanoi have increased from 90-120 USD/m2 in 2019 to 100-170 USD/m2 in 2023. This fee in HCMC ranges from 160-270 USD/m2, up from 130-160 USD/m2 (2019). Meanwhile, the rental price in Quang Ninh ranges from 80-100 USD/m2, compared to 60-70 USD/m2 before the Covid-19 pandemic.
Not only that, labor costs in Quang Ninh are also lower than in big cities. According to the General Statistics Office, the average monthly salary in Hanoi in 2022 was 8.86 million VND (385 USD), in HCMC it was 9.1 million VND, while in Quang Ninh it was 7.03 million VND.
Mr. Hiroki Tsuchiya, CEO of DEEP C Industrial Zone, said: “Provinces neighboring Hai Phong such as Quang Ninh, Thai Binh will continue to be favored by foreign companies”.
The strategic importance of Quang Ninh province is also clearly reflected in the railway development plan. The Ministry of Planning and Investment of Vietnam recently said that the construction of two high-speed railway lines connecting Hanoi to China will begin before 2030. The trains are expected to stop in Hai Phong and Quang Ninh.
Source: Nikkei Asia
