Ha Nam has industrial land fund, abundant and skilled labour force, guaranteed security and synchronous infrastructure system. — Photo courtesy of Ha Nam province
The influx of foreign investment to northern provinces such as Ha Nam is increasing, helping these localities become the next investment destinations after Ha Noi.
FDI inflows into northern provinces
In May 2019, Teijin Group, a wholly-Japanese invested enterprise, was licensed by Ha Nam Provincial People's Committee to invest in a US$12 million project in Dong Van III Industrial Park. The project produces carbon fibre for the aerospace, automotive, plastic engineering, healthcare and sports industries.
Teijin operates in the field of manufacturing high-quality carbon fibre and plastic for automobiles, aircraft, medical equipment and sports businesses in the US, Japan and Europe. Teijin currently has 163 subsidiaries worldwide.
Previously, Yokowo, another wholly-Japanese invested firm specialising in assembling and manufacturing communication equipment for motor vehicles, and many other companies from Japan and South Korea, also chose Ha Nam for their production facilities.
In Ha Nam province, there are currently 82 Japanese enterprises and 108 South Korean enterprises. Of them, many are making profits such as Honda Vietnam Co Ltd, Sumiden Fine Conductors Co Ltd, NMS Co Ltd, and Seoul Semiconductor Vina Co Ltd.
In the past 10 years, the flow of foreign investment into Ha Nam has been increasing, helping the locality quickly become the next investment destination after Ha Noi.
According to real estate consulting firm JLL, in the future, with many manufacturers shifting production to countries outside of China, Viet Nam will become one of their new choices, especially in the key industrial cities of the northern region.
Ha Nam has an industrial land fund, abundant and skilled labour force, guaranteed security and synchronous infrastructure system.
Industrial park network
In a recent interview, Nguyen Mai, Professor and Chairman of Viet Nam's Association of Foreign Invested Enterprises, said that Viet Nam has been effectively attracting foreign investment capital and quickly granting procedures thanks to the Investment Law. In addition, the State management agencies and the Government also provides a lot of incentives for foreign enterprises when investing in Viet Nam.
According to JLL, the industrial market in the northern region still has enough land for investment needs. Moreover, new land supply from the subsequent stages of existing industrial parks and newly built industrial parks also provides more options for investors.
Ha Nam has eight industrial parks approved by the Government soon to be in place, of which the latest is Dong Van III Industrial Park with a scale of 168.41 hectares and investment of VND1.27 trillion.
Ha Nam industrial zones can meet long-term development requirements of businesses. From 2016 to September 2019, industrial zones in the province have attracted 170 projects, of which 68 per cent are foreign-invested projects (FDI).
In the first eight months of 2019, Ha Nam attracted 66 projects. The total newly registered capital was $304.2 million.
In addition to the advantages of geographical location and human resources, the policies to attract investment of Ha Nam are implemented synchronously, especially with the strong commitment from authorities. — VNS