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Vietnam’s Key Economic Zones: Northern KER's Performance and Investments

Vietnam’s Northern Key Economic Region in 2022

EDM on STTP EN - 19

 

The northern KER comprises seven cities and provinces, including Hanoi, Hai Phong, Quang Ninh, Vinh Phuc, Bac Ninh, Hai Duong, and Hung Yen. This is a dynamic economic center and an important economic locomotive for the north.

Of the cities in the northern KER Hanoi contributed the most to the gross regional domestic product (GRDP), accounting for 47.22 percent. This was four times higher than Hai Phong. It also recorded a growth rate in the range of 9 to 13 percent.

In terms of import and export turnover, the Northern KER saw an increase of 7.84 percent compared to the year 2021. Notably, Bac Ninh recorded the highest trade turnover at US$83.4 billion, or 33.89 percent of the total for the region. Quang Ninh and Vinh Phuc also achieved year-on-year growth rates of 28.79 percent and 26.99 percent, respectively.

EDM on STTP EN - 21

In terms of FDI, the northern KER attracted more than US$9.61 billion. With a growth rate of 18.1 percent, the region’s newly registered capital investment totaled 37.43 percent of the whole country. The two provinces contributing the most to regional FDI were Quang Ninh and Bac Ninh, with 24.64 percent and 23.35 percent, respectively.

Hanoi accounted for more than half of the area’s new projects but ranked fifth out of seven in terms of newly registered capital.

In 2022, Northern KER mainly attracted industrial projects but wants to attract high-tech, environmentally friendly projects in 2023. In fact, the northern KER is well known for electronics manufacturing with the bulk of both Apple and Samsung’s

Investments in Vietnam’s Northern Key Economic Region in 2022

EDM on STTP EN - 22

Stavian Quang Yen Petrochemical

Stavian Quang Yen Petrochemical’s has committed to investing US$1.5 billion in a polypropylene resin production project in Bac Tien Phong Industrial Park. It will have a scale of 600,000 tons of polypropylene per year.

Goertek Vina Science and Technology Company Limited (Goertek)

Goertek announced plans to develop a factory for manufacturing electronic equipment, network equipment and multimedia audio products in Que Vo Industrial Park, Bac Ninh province. The company has adjusted capital in the project from US$260 million to US$565 representing an additional US$305.7 million.

JD Future Explore V Limited

An e-commerce warehouse project being developed by JD Future Explore V Limited from Hong Kong in the Non-Tariff Zone and Nam Dinh Vu Industrial Park (Hai Phong City) will attract an estimated US$32 million of investment.

 

Source: Vietnam Briefing