Motivation Behind Thai Binh’s Transformation: The “Rice Bowl” of Vietnam Takes a New Direction
Once renowned as the “rice bowl” of Northern Vietnam, Thai Binh province is undergoing a significant economic structural shift. The local government is strategically reducing the proportion of agriculture and aquaculture while increasing the focus on industry and construction. In 2023, the agriculture, forestry, and fisheries sectors contributed only 19.9% to the province’s GRDP, while the industry and construction sectors accounted for a substantial 45.0%, with the service sector making up the remaining 29.1%.
Looking ahead, Thai Binh aims to further boost its industrial sector by 2030, with a target of approximately 62.1% of the economic structure comprising industry and construction. The province also strives for a GRDP per capita equivalent to the national average.
Thai Binh’s FDI attraction ranks in the top 5 nationwide, solidifying its investment appeal (Source: thaibinh.gov)
The provincial planning for the 2021–2030 period, with a vision towards 2050, underscores the development of industry and services as the economic growth pillars. Thai Binh aspires to become a modern industrial hub and a leading energy center in the Red River Delta region. It aims to serve as a distribution center and a strategic transit point for goods in the southern part of the Red River Delta and the North-Central region.
To achieve its industrial ambitions, Thai Binh has established the Thai Binh Economic Zone, spanning an area of 30,583 hectares with a 54-kilometer coastline. Of this, over 8,000 hectares are allocated for industrial, urban, and service development. With 22 industrial parks, the economic zone is anticipated to witness substantial growth, akin to the success stories of Quang Yen and Dinh Vu in the coming years.
Thai Binh’s determined efforts to foster industrial growth have yielded remarkable results. In 2023, the province attracted nearly USD 3 billion in FDI, the highest ever, propelling it into the top 5 FDI destinations in the country. This achievement firmly establishes Thai Binh as a member of the prestigious “Billion Dollar Club” for foreign investment attraction.
Moreover, in the first half of 2024, Thai Binh’s economy outperformed expectations, showcasing impressive figures in exports and industry. The province attracted investment capital totaling VND 7,769.9 billion, more than double the figure from the previous year. FDI inflows reached USD 232 million, a 5.7-fold increase year-on-year. The total realized investment capital in the province was estimated at VND 27,647 billion, reflecting a 6.9% uptick compared to the same period last year.
The economic transformation and the influx of FDI into Thai Binh underscore the province’s strong investment appeal. It has emerged as a strategic location for investors seeking to expand their production and business operations.
Transport Connectivity: Catalyzing Thai Binh’s Development
In its quest for robust economic growth, Thai Binh is committed to organizing its development space harmoniously and sustainably, forging strong linkages with the Red River Delta and North-Central regions.
The provincial planning for 2021–2030, with a vision towards 2050, outlines a development framework comprising one center, four socio-economic spaces, and three economic corridors.
The center is Thai Binh City, serving as the administrative, political, economic, and cultural hub of the province. It concentrates on urban economic activities, commerce, and services while acting as a pivotal link to other provinces in the Red River Delta and the rest of the country.
Thai Binh City is being developed meticulously, with a focus on synchronizing transportation and urban infrastructure. The city is poised for expansion to accommodate the burgeoning industrial growth in the future.
Emphasis on developing infrastructure connecting Thai Binh City with other provinces in the Red River Delta (Source: thaibinh.gov)
The three economic corridors play a pivotal role in Thai Binh’s transportation infrastructure. The Northwest Corridor connects peripheral areas with neighboring provinces (Hung Yen and Ha Nam) and Hanoi, aligning with Hanoi’s Ring Road 5 (CT.39) and CT.16, which links the coastal economic zone to Thai Binh City and the economic zone in the northwest of the capital.
The Eastern Corridor follows the Northeast-Southwest axis, corresponding to the Ninh Binh-Hai Phong-Quang Ninh expressway. Meanwhile, the Northeast-Southwest Corridor connects the North-Central provinces to Hai Phong and Quang Ninh, facilitated by the coastal expressway that links six provinces and cities, forming a chain of coastal economic zones and serving as a vital socio-economic catalyst for the entire Red River Delta region.
These economic corridors not only bolster Thai Binh’s position as a distribution center and goods transit hub but also propel the province towards becoming a new economic and industrial growth pole in the Red River Delta.
Mr. Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association, highlights that the robust industrial and infrastructure development in Thai Binh is fueling a surge in housing and utility service demands. This presents a plethora of opportunities for real estate investors in the province.
