According to the latest data from the Ministry of Planning and Investment (MPI), the Red River Delta region has become a major driving force for Vietnam’s economic growth. The region’s economic performance in the first seven months of 2024 highlights its explosive growth in the national economy, sparking the main driving force of Vietnam’s economic growth. The Vietnamese economic landscape may undergo changes.

Key Economic Indicators

• Economic share: 7.21%, reaching the national average level
• State budget allocation: 521 trillion VND (20.79 billion USD), accounting for 41% of the national total
• Export value: Over 80 billion USD, accounting for 35% of the national total
• Foreign Direct Investment: 645 projects with newly registered capital of 5.7 billion USD
• Newly registered enterprises: 29,600, a year-on-year increase of 3.4%

Regional Competition

The Red River Delta’s 7.21% development ranks among Vietnam’s six economic regions, surpassing the performance of traditional economic centers. This growth contrasts with the Mekong Delta region, which has historically been Vietnam’s third-ranked agricultural center for the same period, but with slightly slower industrial development.

Deputy Minister of Planning and Investment Do Thanh Trung stated, “The Red River Delta region has achieved outstanding results this year, affirming its role as a guiding force for Vietnam’s economic growth.”

The region’s current economic status highlights its significant transformation from a predominantly agricultural area. Since the innovation and opening-up policies of the 1990s, the Red River Delta has transformed from rice cultivation to a center for manufacturing and high-tech industries. This is reflected in the region’s high export figures and attractiveness to foreign investment.

Government Plans and Policies

The Ministry of Planning and Investment is proposing several specific mechanisms and policies to further promote the region’s development:

1.Support industrial environment development

2.Prioritize the development of marine economic centers

3.Research the establishment of a free trade zone in Hai Phong City and Quang Ninh Province

Additionally, Hanoi is seeking approval for new urban development projects:

• Northern area covering Dong Anh, Me Linh, and Soc Son districts
• Western city covering Hoa Lac and Xuan Mai

Hanoi City Chairman Nguyen Sy Thanh emphasized, “These plans aim to build Hanoi into an intelligent, modern city, becoming the center of development for the Red River Delta region and the driving force of national economic growth.”

Key Progress and Challenges

While some key infrastructure projects have been completed ahead of schedule, such as the Ben Rung Bridge and parts of the urban railway line from Nhon to Hanoi Railway Station, other projects still face short-term challenges. The Ninh Binh-Hai Phong Expressway and Cat Bi International Airport projects are encountering difficulties in site clearance and construction progress.

The economic performance of the Red River Delta and the government’s focus on its development indicate a continued shift in Vietnam’s economic center of gravity. As the region addresses infrastructure challenges and implements new policies, it may play an increasingly crucial role in Vietnam’s economic future.

Key Points

• The Red River Delta region’s economic growth rate reached 7.21%, higher than the national average, becoming a major driving force for Vietnam’s economic growth.
• The region performs outstandingly in terms of national budget contribution, export value, and foreign investment, accounting for a large proportion of the national total.
• The government plans to further support the region’s development, including the construction of industrial clusters, marine economic centers, and free trade zones.
• Hanoi is promoting new urban development projects, aiming to become an intelligent, modern regional development center.
• Although some infrastructure projects are progressing smoothly, others still face challenges that need to be addressed.

Investors and businesses are advised to closely monitor policy developments and infrastructure improvements in the region, as these may bring significant opportunities in the coming years. For companies considering Vietnam, especially the Red River Delta region, it is crucial to have an in-depth understanding of the local market, regulatory environment, and ongoing policy developments.

Our team of expert consultants specializes in guiding businesses through the complexities of entering the Vietnamese market. For personalized advice and insights on how your business can leverage opportunities in the Red River Delta and other regions, please visit our website’s consultation page or contact our Vietnam market entry specialists directly.