Emerging FDI Hotspot: Bac Giang’s Rising Star in Northern Vietnam
Bac Giang has rapidly transformed from a supporting industrial province to a prominent FDI hub in Northern Vietnam. This remarkable shift is attributed to the province’s flexible policies, continually improving infrastructure, and abundant industrial land with competitive costs.
According to the Bac Giang Department of Planning and Investment, in the first half of 2025, the province attracted 47 new FDI projects with a total registered capital of nearly USD 910 million, a remarkable increase of over 35% compared to the same period last year. Notably, approximately 62% of FDI capital is directed towards the production of electronic components and high-tech industries.
Bac Giang’s economic growth rate for Q1/2025 is estimated at 14.02%, leading the country. (Image source: Vietnam Finance)
Bac Giang consistently attracts impressive FDI figures, becoming a “golden” destination for renowned investors in the electronics and high-tech industries. Foxconn, a leading global electronics manufacturer, has committed to investing an additional USD 80 million in a chip production project in Quang Chau Industrial Park. This adds to their prominent presence in the province with the Fukang Technology project, boasting an investment of approximately USD 500 million.
Meanwhile, Sunwoda, a leading Chinese battery manufacturer, plans to invest USD 300 million in a new project in Yen Lu Industrial Park, following the success of their operating factory in Van Trung Industrial Park.
Bac Giang’s appeal extends beyond the electronics industry, with investors from South Korea and Japan showing interest in other potential sectors such as renewable energy, precision mechanics, and auxiliary industries. The province is solidifying its position as a multi-sector growth hub, ready to embrace diverse investment waves.
Geo-strategic Advantage and Regional Collaboration: A Dual Benefit
Bac Giang’s vision post-merger goes beyond attracting individual FDI projects. It aims to build a comprehensive industrial and service ecosystem for sustainable development.
Strategically located in the growth triangle, Bac Giang enjoys a favorable position with a well-developed and integrated transportation system. The Hanoi-Bac Giang-Lang Son expressway, along with the railway and National Highway 1A, streamline the transportation of goods to seaports and Noi Bai International Airport, optimizing the supply chain for manufacturers.
Bac Giang is focusing on expanding roads connecting ports and highways. (Image source: bacgiang.gov.vn)
The designation of Bac Giang city as the new administrative center of the province marks a new era. Experts believe that post-merger, FDI investors have quickly recognized the “golden” opportunity. More reasonable production costs are attributed to competitive industrial land rental prices, averaging USD 90-110 per sq. m per lease cycle, 20-30% lower than Bac Ninh. A large land fund with a total planned industrial land area of over 7,000 hectares for the 2025-2030 period is available. The inter-regional transportation infrastructure is well-developed, especially with the synchronous implementation of the Capital Region Ring Road 4 project with a length of 112.8 km, expected to be partially completed by the end of 2026.
Additionally, flexible investment attraction policies, maximum support in administrative procedures, technical infrastructure, and preferential tax policies further enhance the region’s appeal. These outstanding advantages will significantly improve the competitiveness of the Northern industrial region in the global value chain.
Ushering in a Golden Growth Cycle
The surge in FDI and the remarkable development of industrial parks are creating a “golden” opportunity for the Bac Giang real estate market. The pressing need for housing for experts, engineers, and highly skilled workers, along with commercial, entertainment, and synchronized utility services, presents a vast opportunity for real estate developers.
Bac Giang’s urban landscape is undergoing a significant transformation with modern residential projects. (Illustrative image)
In the context of the global supply chain shift, the collaboration between Bac Ninh and Bac Giang presents a golden opportunity for FDI enterprises, industrial infrastructure developers, and strategic urban developers to embrace a promising new growth cycle.
