“Vietnamese Province Aims for $200 Billion in Trade Post-Merger: An Ambitious Economic Vision”

National Assembly Passes Resolution to Restructure Provincial Administrative Units

On the morning of June 12, the National Assembly approved a resolution on the rearrangement of provincial-level administrative units for the year 2025, reducing the number of provinces and cities from 63 to 34. As a result, post-merger, Vietnam will comprise 28 provinces and 6 municipalities under the central government.

According to the resolution, the provinces of Bac Giang and Bac Ninh will be merged to form a new province named Bac Ninh, spanning an area of 4,718 square kilometers and housing a population of 3.6 million.

The anticipated socio-economic development targets for the new Bac Ninh province during the 2026–2030 period include an average annual growth rate of 10.5–12.5% in the regional gross domestic product (RGDP) and a per capita RGDP of US$8,500 by 2030.

Furthermore, in the period from 2026 to 2030, Bac Ninh is expected to collect more than VND 375,000 billion in state budget revenue. Specifically, in 2030, the state budget revenue is projected to surpass VND 88,000 billion. The total local budget expenditure for the 2026–2030 period is estimated at nearly VND 280,000 billion.

Notably, by 2030, the new Bac Ninh province aims to achieve a total import-export turnover of US$212 billion.

The New Bac Ninh Province is Expected to Have Significant Development Potential

In reality, the anticipated merger between Bac Ninh and Bac Giang is expected to establish an industrial hub in the north, featuring large-scale new industrial parks, while also creating an attractive investment destination. Following the merger, the new Bac Ninh province will hold significant influence and stature, ranking fifth in the country in terms of economic scale. Moreover, the new Bac Ninh province is predicted to offer substantial development potential, boasting major projects such as the Gia Binh airport, expressways, and large industrial parks…

In the first quarter of 2025, Bac Giang topped the country in RGDP growth, while Bac Ninh led in FDI attraction, particularly in high-tech and semiconductor projects.

According to Bac Ninh’s statistics, in the first five months of 2025, the state budget revenue in the province was estimated at VND 20,086 billion, accounting for 51.9% of the yearly estimate and reflecting a 23.5% increase compared to the same period in 2024.

Bac Ninh has successfully attracted investment from 41 countries and territories, especially in the electronics sector. It serves as a production base for numerous prominent global economic groups, including Samsung, Canon, Nokia, and Amkor. For many years, Bac Ninh has consistently ranked first in the country regarding foreign investment attraction.

In the first five months of the year, Bac Giang’s industrial production value was estimated at over VND 338,800 billion, marking a rise of over 27% compared to the same period last year. The province’s total import and export turnover surpassed US$33 billion, representing a 1.7-fold increase compared to the first five months of 2024.

In 2024 and the first quarter of 2025, Bac Giang led the country in economic growth, achieving a growth rate of over 13%. Currently, the Prime Minister has approved the establishment of 12 industrial parks in Bac Giang, spanning a total planned area of approximately 2,823 hectares.

Bac Giang’s industrial parks have attracted 488 investment projects, including 373 FDI projects and 115 domestic direct investment (DDI) projects, with a total investment capital of US$10.6 billion. According to the province’s plan, by 2030, Bac Giang will have 29 industrial parks covering a total area of 7,000 hectares.