Vietnam’s Industrial Zones – How to Pick a Location for Your Business
Vietnam developed industrial zones to further boost foreign investment into the country. Vietnam Briefing explains the industrial park system, how a businessperson can evaluate industrial zones, and some of the advantages of setting up in an industrial zone.
Industrial Zones are locations that are earmarked by the government for the production of industrial goods and services. Typically, industrial zones complement certain activities – such as production, export, or hi-tech – and have incentives for business that set up there.
Accordingly, industrial zones are a popular investment destination for foreign businesses.
The number of industrial zones in Vietnam continues to rise as foreign investment pours in. As of December 2018, there were 326 industrial zones set up countrywide, with 249 already in operation. The occupancy rate reached 73 percent, according to the Ministry of Planning and Investment.
By the end of 2018, industrial and economic zones attracted 7,500 domestic projects worth US$41.75 billion and around 8,000 foreign projects with a total capital over US$145 billion. Meanwhile, the Department of Economic Zones Management is in the process of drafting a legal framework to attract more foreign and domestic investments.
While industrial zones work well for many businesses in the country, investors should take the time to learn more before creating a shortlist of locations to visit. Here, we highlight the most important considerations for your business to consider.
Industrial zone locations
Vietnam’s industrial zones are spread out across the country, and are concentrated within three administrative regions – the Northern, Central and Southern regions. Each region has its own characteristics, as well as unique incentive programs.
