Local authorities pledge to support industrial parks in becoming reliable and attractive destinations for domestic and foreign investors

Optimistic investment inflows

In the first 11 months of 2024, industrial parks in Vinh Phuc province attracted 29 new foreign direct investment (FDI) projects and saw 38 existing projects to increase their investment fund, totaling US$493.06 million (new grants: US$188.43 million and increased fund: US$304.63 million), down 11% year on year and equal to 141% of the full-year plan. In the meantime, 14 new domestic direct investment (DDI) projects and seven existing DDI projects registered to invest VND4,517.3 billion (new projects: VND3,313.28 billion and existing projects: VND1,204.02 billion), down 28% year on year and equal to 301% of the yearly plan.

As of November 15, 2024, Vinh Phuc industrial parks were home to 497 valid investment projects, including 121 DDI projects with VND38,973.01 billion and 376 FDI projects with US$6.8 billion. In November 2024, two more projects came into commercial operation, bringing total operational projects to 416 projects as of November 15 (337 FDI projects and 79 DDI projects), accounting for 83.7% of total projects.

FDI projects come from 20 countries and territories in the world, with electronics manufacturing and automobile and motorbike manufacturing accounting for 50.4% and 12.8%, respectively. Disbursed capital accounted for 60 - 65% of the registered value. IPs have created jobs for more than 142,440 workers. Notably, among 20 foreign investors in the province, South Korea takes the lead in both investment projects and value, particularly 238 projects and more than US$3 billion. Many large South Korean corporations are operating effectively in the province and contributing positively to local socioeconomic development, such as Sindoh, Cammsys, Partron, Daewoo Bus, JH Vina, Heasung Vina, ShinWon, Vina Korea, ISC Vina and Solum Vina.

One of the outstanding secondary investment projects licensed into the province's IPs in 2024 is a US$100-million semiconductor manufacturing factory on over 5 ha in Ba Thien Industrial Park - Section I. This project is part of a cooperation agreement between Signetics Joint Stock Company (South Korea) and CNCTech Group (Vietnam). The project is hoped to become a powerful magnet to draw South Korean investors to Vinh Phuc province.

Speaking at the signing ceremony, Chairman of Vinh Phuc Provincial People's Committee Tran Duy Dong affirmed that the cooperation agreement between CNCTech and Singetics proved that Vinh Phuc continues to be an attractive destination for investors, including South Koreans. Emphasizing the view that “Investors in Vinh Phuc are citizens of the province, the success of businesses is the success of the province”, he pledged to continue improving the investment and business environment, stand by investors and facilitate investors, including South Korean investors.

Many new IPs to be formed

Up to now, Vinh Phuc province has 17 industrial parks with a total area of 3,146 ha, including nine in operation (Kim Hoa, Khai Quang, Binh Xuyen, Ba Thien, Binh Xuyen II - Phase 1, Ba Thien II, Tam Duong II - Section A, Thai Hoa - Lien Son - Lien Hoa - Section II - Phase 1, and Thang Long Vinh Phuc), three under construction (Son Loi, Tam Duong I - Section 2 and Song Lo II) and five in blueprint (Binh Xuyen II - Phase 2, Nam Binh Xuyen, Phuc Yen, Song Lo I, and Dong Soc).

Among licensed projects into IPs in 2024, some large-scale IP infrastructure investment projects are expected to create attractive, vibrant destinations for investors and contribute effectively to local economic and social development. Typically, the Phuc Yen IP infrastructure investment project was granted to SHINEC Joint Stock Company and Vinh Phuc Industrial Park and International Services Joint Stock Company by the Vinh Phuc Provincial People's Committee. Situated in Phuc Yen City, the 111.3-ha industrial park, which was estimated to cost nearly VND2,000 billion for construction, will have the infrastructure system built from the second quarter of 2025 to the first quarter of 2027 and start official operation from the second quarter of 2027. Phuc Yen Industrial Park with a synchronous and modern infrastructure system plans to draw technologically advanced eco-friendly projects involved in mechanical engineering, precision engineering, medical machinery and equipment and electrical equipment.

In late June, CNCTech Group Joint Stock Company hosted the workshop “Investment Promotion into Industrial Parks in Vinh Phuc in 2024”, which was attended by nearly 100 South Korean investors and tenants in Vinh Phuc province-based industrial parks. Speaking of the investment license in Vinh Phuc province at the event, Mr. Nguyen Van Hung, Chairman of the Board of Directors of CNCTech Group, highly appreciated local advantages and investment environment, adding that the firm is carrying out many industrial zone projects in Vinh Phuc province. Particularly, CNCTech Group coordinated with PNX Group of South Korea to invest in Nam Binh Xuyen Industrial Park, which is designed to be a green, smart, modern industrial park, an attractive destination for domestic and foreign firms. This positive signal is expected to strongly woo high-quality FDI projects in line with the sustainable development vision of Vinh Phuc province.

In the coming time, the Vinh Phuc Industrial Zones Management Board will continue to work with investors and relevant agencies to accelerate the progress of IP infrastructure investment, particularly Binh Xuyen, Ba Thien II, Tam Duong II - Section A industrial parks. The board will urge investors and relevant agencies to accelerate land compensation, site clearance and infrastructure construction investment in Son Loi, Song Lo I, Song Lo II, Tam Duong I - Section 2, Thai Hoa - Lien Son - Lien Hoa - Section 2 (Phase 1), Nam Binh Xuyen, Phuc Yen and Dong Soc industrial parks.

Besides, the board will continue to urge investors to carry out Song I, Song Lo II, Tam Duong I - Section 2, Son Loi, Nam Binh Xuyen, Phuc Yen and Dong Soc industrial parks, and speed up the commencement on infrastructure construction in Song Lo I, Phuc Yen, Dong Soc and other industrial parks.

Promoting its achievements, the board will continue to uphold its solidarity, creativity, determination and effort to outperform its assigned tasks to make industrial parks reliable and attractive destinations for domestic and foreign investors.