1. Geographical location and regional characteristics
Northern Region:
Representative industrial parks: Hanoi Shishi Industrial Park, Bac Ninh Quy Vu Industrial Park, Hai Phong Nanyang Industrial Park
Features: Close to the Chinese border, suitable for the “China + 1” strategy
Main provinces and cities: Hanoi, Haiphong, Bac Ninh, Haiyang, Hung Yen, Vinh Phuc, Quang Ninh
Central Region:
Representative industrial parks: Hop Khanh Industrial Zone, Da Nang, Vinh An Economic Zone, Ha Tinh
Features: Great development potential, but relatively backward infrastructure
Major provinces and cities: Thua Thien Hue, Da Nang, Quang Nam, Quang Ngai, Pingtan
Southern Region:
Representative industrial parks: Saigon Hi-Tech Park in Ho Chi Minh City, VSIP Industrial Park in Binh Duong, Long Thanh Industrial Park in Dong Nai
Features: Vietnam’s most developed industrial zone, with concentrated foreign investment
Major provinces and cities: Ho Chi Minh City, Binh Duong, Dong Nai, Long An, Ba Ria-Vung Tau, Binh Phuoc, Tay Ninh, Tien Giang
2. Cost comparison
Land rent:
North: 54-122.5 USD/m2/year
Central: USD 22.5-55.5/m2/year
South: USD 60-200/m2/year (depending on location)
Electricity fee: (VND/kWh)
North: Average electricity price is VND2,092.78 per kWh
Central: Since the electricity rate adjustment plan has not yet been announced, the electricity price may change according to market conditions.
South: Average electricity cost is VND2,092.78 per kWh
Water fee: (VND/m3)
Northern region: Water charges in industrial parks in northern Vietnam average 10,500 VND per cubic meter.
Central Region: Water rates in the Central Industrial Park are slightly lower, averaging VND 9,500 per cubic meter.
Southern region: Water prices are highest in industrial parks in the southern region, averaging VND12,000 per cubic meter
3. Policy comparison
Tax Benefits:
Economic Zone/Export Processing Zone: 10% corporate income tax rate for 15 years, 4 years of tax exemption, 9 years of 50% tax reduction
High-tech Zone: 10% corporate income tax rate for 15 years, 4 years of tax exemption, 9 years of halving
General industrial zone: Corporate income tax rate 17%-20%, 2 years of tax exemption, 50% reduction in 5 years
Encouraged projects: 10% corporate income tax rate for 15 years, tax exemption for 4 years, and 50% reduction for 9 years
Foreign investment access policy:
North: Relatively open, encouraging industries such as electronics and machinery
Central: Encourage light industry and food processing
South: Most open, encourages high-tech industries
4. Infrastructure comparison
Transportation convenience: (1-5 points)
North: 4 points (close to the Chinese border, convenient logistics)
Central: 3 points (relatively backward infrastructure)
South: 5 points (well-developed infrastructure, close to ports and airports)
Power supply stability: (1-5 points)
North: 4 points
Central: 3 points
South: 5 points
Quality of communication facilities: (1-5 points)
North: 4 points
Central: 3 points
South: 5 points
5、Human Resources Comparison
Labor supply adequacy: (1-5 points)
North: 5 points (abundant labor resources)
Central: 4 points
South: 4 points (labor costs are relatively high)
Proportion of skilled workers:
Northern Region:Industrial parks in the northern region have a higher proportion of skilled workers, about 30%. Industrial parks in this region have attracted a large number of high-tech companies, such as Samsung and Honda, which has driven up the demand for skilled workers.
Central Region:The proportion of skilled workers in industrial parks in the central region is relatively low, at about 20%. Although the central region has abundant land resources and low rental costs, its skilled worker pool is relatively small and mainly engaged in traditional light and heavy industries (Khu Công Nghiệp Du Long).
Southern Region:The proportion of skilled workers in industrial parks in the southern region is between the northern and central regions, at about 25%. This region, which includes Ho Chi Minh City and its surrounding provinces, has well-developed infrastructure and high foreign direct investment (FDI), attracting a large number of manufacturing companies.
Average salary level: (US dollars/month)
Northern Region:In the northern region (including Hanoi and surrounding provinces), the average monthly salary for skilled workers is about 9 to 11 million VND (about 380 to 460 USD). This region has attracted a large number of high-tech enterprises, resulting in a high demand for skilled workers and relatively high salary levels.
Central Region:The wages of skilled workers in the central region are relatively low, with an average monthly salary of about 7 to 9 million VND (about 300 to 380 USD). The central region is mainly engaged in traditional manufacturing, with a low proportion of skilled workers and relatively low wages.
Southern Region:The average monthly salary of skilled workers in the southern region (including Ho Chi Minh City and its surrounding provinces) is about 10 to 12 million VND (about 420 to 500 USD). As Ho Chi Minh City is the largest economic center in Vietnam, it has attracted a lot of foreign investment and high-tech enterprises, resulting in higher wages for skilled workers in the region.
6. Industrial clusters
Northern Region
Leading industries:
Electronics and high-tech industries: Large companies such as Samsung, LG and Canon have manufacturing and R&D bases in Hanoi, Bac Ninh and Hai Phong.
Automobile Manufacturing: Honda and Toyota have large manufacturing plants in Vinh Phuc and Thai Nguyen provinces.
Representative companies:
- Samsung Electronics: has large manufacturing bases in Bac Ninh and Thai Nguyen provinces, producing smartphones and other electronic devices (VN Briefing) (VN Briefing).
- Canon: Has factories in Hanoi and Bac Ninh that produce printers and other electronic equipment (VN Briefing).
Central Region
Leading industries:
Traditional manufacturing: Textile, clothing and footwear manufacturing are more common in the central region.
Food processing: The food processing industry is concentrated in Da Nang and Quang Nam provinces.
Representative companies:
Textiles and clothing: For example, Vietnam Textile Group (Vinatex) in Quang Nam Province is one of the largest textile and garment companies in Vietnam.
Footwear manufacturing: Pou Chen International Group has production bases in Da Nang and other central regions (TimeCamp).
Southern Region
Leading industries:
Electronics and high-tech industries: Companies such as Intel and Microsoft have R&D and manufacturing bases in Ho Chi Minh City.
Food and Beverages: This includes processing and manufacturing, with many international and local brands having factories here.
Petrochemical industry: Mainly concentrated in Ba Ria-Vung Tau Province.
Representative companies:
Intel: Has a large chip manufacturing and R&D center (Adecco) in the Ho Chi Minh City Hi-Tech Park.
PepsiCo: It has several beverage production plants in Ho Chi Minh City and surrounding areas.
BASF: has a large chemical production base in Ba Ria-Vung Tau Province (VN Briefing).
7. Supporting services
Logistics service quality: (1-5 points)
North: 4 points
Central: 3 points
South: 5 points
Availability of financial services: (1-5 points)
North: 4 points
Central: 3 points
South: 5 points
Business service completeness: (1-5 points)
North: 4 points
Central: 3 points
South: 5 points
in conclusion:
- The northern region is suitable for manufacturing companies seeking cost advantages and industrial chain integration, especially the electronics and machinery industries.
- The central region has great development potential and is suitable for light industry and food processing enterprises, but the problem of relatively backward infrastructure needs to be considered.
- The southern region is the most developed and suitable for high-tech companies and companies that need comprehensive supporting services, but the cost is relatively high.
- Investors should choose the most suitable park based on their own needs, taking into account factors such as cost, policy, infrastructure and human resources.
- Investors are advised to conduct on-site inspections, obtain the latest data, and communicate with local governments and park management departments to make the best decisions.
