Vietnam’s Southern Key Economic Region in 2022
The southern KER includes eight provinces and cities: Ho Chi Minh, Binh Duong, Ba Ria- Vung Tau, Dong Nai, Tay Ninh, Binh Phuoc, Long An, Tien Giang. It is home to a large number of industrial parks, supermarkets, and commercial centers of many major retail groups.
Ho Chi Minh contributes 15.5 percent of Vietnam’s GDP and 46 percent of the southern KER’s GRDP, which is three times higher than Binh Duong, the second-largest province in the region. In 2022, all eight provinces had growth rates ranging from 7 to 9 percent.
In terms of import and export turnover, the region recorded growth of 5.7 percent, of which Ho Chi Minh continued to lead with US$110.3 billion, contributing 41.47 percent to the region. Tien Giang and Tay Ninh also showed strong year-on-year growth of 42 percent and 23.6 percent, respectively.
As for FDI, Ho Chi Minh is still at the top of the whole region as well as nationwide. The city contributed 34.92 percent to regional FDI. In terms of capital, Ho Chi Minh accounted for 13.5 percent, 52.9 percent and 45.6 percent of the regional FDI inflow in new projects, capital increase, and capital contribution and share purchases, respectively.
Some other provinces that also recorded strong growth are Ba Ria – Vung Tau and Dong Nai.
Vietnam’s southern KER is also known for its manufacturing prowess with the bulk of both Nike and Adidas operations in Vietnam located in the region.
Investments in Vietnam’s Southern Key Economic Region in 2022
Lego
A new Lego factory in Binh Duong will utilize an investment of US$1 billion. This is the largest investment project by the Danish enterprise in Vietnam. It is expected to create 4,000 jobs when it becomes operational in 2024.
LOUVRE
LOUVRE’s high-class fabric production project in Thanh Thanh Cong industrial is being funded by the Libra International Investment Company from Singapore to the tune of US$210.
Coca-Cola Vietnam
Coca-Cola Vietnam factory project in Long An with an investment of 136 million USD. In a total area of 19 ha, the factory in Long An is expected to come into operation with a maximum capacity of 1 billion liters of product per year.
Pandora Group
Pandora Group, the world’s largest jewelry brand, in partnership with Vietnam – Singapore Industrial Park Limited Company (VSIP 3), intends to build a jewelry manufacturing facility in Binh Duong for around US$100 million.
Source: Vitenam Breifing