Other BriefingsKey Industrial Parks in Northern Vietnam
We list key industrial parks in Northern Vietnam favored by foreign investors as well as their respective sector focus and tax incentives.
With proximity to China and an abundant labor force, the Northern Vietnam is viewed as a strategic destination for investments from domestic and foreign firms in various industries. This article introduces some of the key industrial parks in the region.
Introducing the appeal of Northern Vietnam
As of 2024, Northern Vietnam had 68 new industrial park projects, bringing the total number of industrial parks in this critical economic area to 248. Prominent names such as Samsung, LG Electronics, Vinfast, etc. have invested over US$17.3 billion into this region, occupying 67 percent of the country's total foreign direct investment (FDI) capital.
Two provinces from the North were ranked first and third in attracting registered FDI capital – Bac Giang (US$1.06 billion) and Bac Ninh (US$486 million) – as of the end of 2023.
Northern Vietnam’s industrial parks are spread over 25 provinces and direct-controlled municipalities. The localities with the most industrial parks are:
- Bac Giang Province (20)
- Bac Ninh Province (22)
- Hai Duong Province (21)
- Hai Phong City (20)
- Hanoi City (19)
- Hung Yen Province (20)
- Quang Ninh Province (16)
- Vinh Phuc Province (20)
The most significant projects in Northern Vietnam’s industrial parks belong to the electronics, computers, automobile manufacturing, machinery, equipment, and solar energy sectors.
Top industrial park projects
Interested investors can consider the below six largest industrial parks in the North of Vietnam for their upcoming projects as they possess crucial advantages, from favorable geographical locations to modern infrastructures.
DEEP C Industrial Park Complex
The complex, expanding to 3,400 hectares over 24 years of constant renovations, comprises five industrial parks. DEEP C is attractive to prominent investors from Taiwan, Japan, South Korea, China, etc.
Main sectors: Logistics, ports, automobiles, and general industry
Locations:
- DEEP C Hai Phong I: Dinh Vu – Cat Hai Economic Zone, Dong Hai 2 Ward, Hai An District, Hai Phong, Vietnam;
- DEEP C Hai Phong II: Tan Vu – Lach Huyen Bridge Roundabout, Dong Hai 2 Ward, Hai An District, Hai Phong, Vietnam;
- DEEP C Hai Phong III: Dinh Vu – Cat Hai Economic Zone, Cat Hai District, Hai Phong, Vietnam;
- DEEP C Quang Ninh I: Tien Phong Commune, Quang Yen Town, Quang Ninh, Vietnam; and
- DEEP C Quang Ninh II: Dam Nha Mac Area, Quang Yen Town, Quang Ninh, Vietnam.
Tax incentives:
For DEEP C Hai Phong I, II, and III:
- Corporate income tax (CIT) at a rate of 20 percent with a complete tax exemption for the first four years and a 50-percent CIT reduction for the next 11 years. This incentive is applied continuously from the first year the firm has taxable income from its investment project. If there is no taxable income in the first three years since the project earns its first revenue, the tax exemption and tax reduction period is calculated from the seventh year.
- Exemption from import tax on goods used to create fixed assets (only applicable to investment incentive industries as prescribed in Decree 134/2016/ND-CP supplemented by Decree 18/2021/ND-CP);
- Exemption from import tax on imported raw materials and supplies for the production of export goods;
- Complete exemption from tax on transferring profits abroad; and
- Exemption from value-added tax (VAT) on exported goods.
For DEEP C Quang Ninh I and II:
- A preferential 10-percent CIT rate for 15 years, compared to the normal rate of 20 percent;
- Exemption from CIT for the first four years;
- A 50-percent reduction in CIT for the next nine years. The tax incentive period begins when the enterprise starts generating taxable income or from the fourth year since its first revenue; and
- Exemption from import tax on imported goods to form fixed assets.
Nam Dinh Vu Industrial Park
Nam Dinh Vu Industrial Park – one of the newest projects located in the south of the Dinh Vu peninsula – covers an area of up to 1,329 hectares. This international industrial park is embraced for its highly favorable location with a network of ports and highways helping businesses optimize their good transportation.
Main sectors: Green and high-tech industries, such as assembling machinery, high-precision engineering technology, electronics, logistics, automobiles, seaports, warehouses, etc.
Location: Nam Dinh Vu Industrial Park is located in Dong Hai 2 Ward, Hai An District, Hai Phong, which is:
- 10 km from Hai Phong center;
- 15 km from Lach Huyen deep-water port;
- 4 km from Hanoi - Hai Phong highway; and
- 8 km from Cat Bi International Airport.
Tax incentives:
- Preferential tax rate of 10 percent for the first 15 years;
- Complete exemption from income tax for the first four years;
- A 50-percent reduction in CIT for the next nine years; and
- Exemption from import tax on imported goods to form fixed assets.
Investors in Nam Dinh Vu Industrial Park are also supported in investment licensing procedures and facilitated by local authorities to shorten the procedural time through the one-stop mechanism.
Yen Phong II Industrial Park
With a scale of 1,200 hectares, Yen Phong II is the largest industrial park in Bac Ninh and the leading FDI attraction project in the North.
Main sectors: Green industries, electronic components, precision mechanics, and automobiles.
Location: Yen Phong II is in Tam Giang Commune, Yen Phong District, Bac Ninh Province. It is:
- 38km from Hanoi capital;
- 22km from Noi Bai International Airport;
- 145km from Hai Phong port; and
- 145km from the Vietnam-China border gate in Lang Son.
Tax incentives:
- Complete exemption from CIT for the first two years;
- A 50-percent reduction in CIT for the next four years; and
- Exemption from import tax on imported goods to form fixed assets.
VSIP Industrial Park
As the second largest industrial park in Bac Ninh, VSIP has been successful due to the project presence of more than 50 domestic and foreign investors, including famous investors such as Pepsico, Nokia, Mapletree Logistics, Josung, etc.
Main sectors: Environment, modernity, high-tech industries, telecommunications, electronic components, logistics.
Location: VSIP Bac Ninh Industrial Park is next to National Highway 1A and Provincial Road 295, on the border of Gia Lam district, Hanoi, and Bac Ninh province. It is:
- 16km from Hanoi capital;
- 110km from Hai Phong port;
- 55km from Noi Bai International Airport;
- 140 km from Cai Lan port, Quang Ninh; and
- 135 km from the Vietnam - China border gate in Lang Son.
Tax incentives:
- Complete exemption from CIT for the first two years;
- A 50-percent reduction in CIT for the next four years; and
- Exemption from import tax for goods in the list of tax incentives, imported to create fixed assets for the project.
In addition, investment projects can also enjoy the highest tax incentives in the case of high-tech projects and supporting industries according to the current Tax Law.
Yen Binh Industrial Park
With a total investment of VND3,820 billion (about US$150 million), Yen Binh Industrial Park is projected to be the most significant construction project in Thai Nguyen. It will cover 693 hectares and be divided into two phases.
Main sectors: Electronics and clean, high-tech industries
Location: Yen Binh Industrial Park is in Pho Yen City and Phu Binh District, Thai Nguyen province. Experts consider it a prime location in Vietnam’s Northern Key Economic Region, thriving at the intersection of five major cities (Hanoi, Bac Ninh, Bac Giang, Thai Nguyen, and Vinh Yen). It is:
- Next to the Hanoi - Thai Nguyen highway, conveniently connected to National Highway 18, National Highway 1, National Highway 5;
- 35 km from Noi Bai airport;
- 5km from Yen Binh river port; and
- 1.2 km from Yen Binh railway station.
Tax incentives:
- Complete exemption from CIT for the first two years;
- A 50-percent reduction in CIT for the next four years; and
- Exemption of import tax for goods in the tax incentive list, imported to create fixed assets for enterprises.
Dong Van IV Industrial Park
Dong Van IV Industrial Park is the largest industrial park in Ha Nam province, covering 600 hectares. This industrial park gains its competitive edge from the abundant human resources of Ha Nam, whose people of working age under 35 years old account for 65%, according to 2019 official statistics).
Main sectors: Green and high-tech industries, such as electronics, automobile manufacturing and assembly, mechanical engineering, and consumer goods production.
Location: Dong Van IV Industrial Park is near Highway 38, in the communes of Dai Cuong, Nhat Tan and Nhat Tuu, Kim Bang district, Ha Nam. It is:
- 3 km from National Highway 1A;
- 5 km from Hanoi - Ninh Binh highway;
- 16 km from Phu Ly city center;
- 47 km from Hanoi city center; and
- 74 km from Noi Bai airport, 119 km from Hai Phong port.
Tax incentives:
- Complete exemption from CIT for the first two years;
- A 50-percent reduction in CIT for the next four years; and
- Exemption of import tax for goods imported to create fixed assets for enterprises.
This article first appeared on Vietnam Briefing, our sister platform.
About Us
ASEAN Briefing is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia and maintains offices throughout ASEAN, including in Singapore, Hanoi, Ho Chi Minh City, and Da Nang in Vietnam, in addition to Jakarta, in Indonesia. We also have partner firms in Malaysia, the Philippines, and Thailand as well as our practices in China and India. Please contact us at asean@dezshira.com or visit our website at www.dezshira.com.
