Located strategically in the North of Vietnam, Thai Nguyen offers rich natural resources and a robust skilled workforce. The province is well recognized as an attractive destination for foreign investors to establish their facilities in Vietnam. Notably, the electronics giant Samsung has set up their footprint in the province.

1. What makes the North of Vietnam an ideal destination for FDI enterprises?

In Northern Vietnam, Thai Nguyen stands out as an attractive destination for foreign investment, especially in the industrial sector, thanks to its advanced industrial zones. This region has a great advantage in terms of geographical location and developed transportation infrastructure, along with attractive investment policies, creating favorable conditions for the development of the electronic component manufacturing industry and attracting foreign investors.

Thanks to its favorable geographical location, developed transportation infrastructure, and attractive investment policies, the North has the potential to become a global center for electronic component manufacturing. In 2022, GDP increased by 8.83% over the same period last year, the highest increase in the past 10 years. This provings that Vietnam is a potential market for FDI enterprises to choose from in the Asia-Pacific region.

In 2022, the North welcomed many major electronics companies in the world such as Panasonic, LG, Canon, Foxconn, Samsung, Fuji Xerox, and recently corporations such as Pegatron, Goertek, Jinko Solar,…

In terms of transportation infrastructure, the North currently has 13 expressways connecting the northern provinces with the capital, with a total length of 895.8km connecting 3 border gates and leading to the 3 most important international airports in the region. At the same time, the North also owns 6 important railway lines, helping to save costs for many businesses when investing here.

Besides, the North is also home to many large industrial zones, concentrating many factory rental services such as GNP Yen Binh 1 & 2, GNP Dong Van 3, GNP Nam Dinh Vu, SEC – Warehouse, ALS Logistics, Toan Nhat, Nhat Viet,…

2. Thai Nguyen attracts FDI in the electronics industry

2013 marked a spectacular breakthrough for Thai Nguyen when it welcomed Samsung Group (Korea), one of the world’s largest electronics FDI enterprises, to commence construction of a mobile phone and electronics component factory at GNP Yen Binh 1 Industrial Center, Pho Yen city, Thai Nguyen. Since then, Thai Nguyen has entered the “golden age” of factory rental services.

Following Samsung’s presence, Thai Nguyen has attracted more than 200 FDI electronics businesses to continue investing, bringing Thai Nguyen’s industrial production and export value to the 4th position in the country, with FDI capital estimated at 12.93 billion USD in 2023. Some FDI electronics investors in Thai Nguyen include: Sunny Group, Dongwha, RF Tech, Hua Li, DBG, Masan, Trina…

Thai Nguyen attracts many FDI enterprises to invest

To achieve these results, it is necessary to mention the policies of Thai Nguyen province in upgrading transportation infrastructure and reducing taxes to create favorable conditions for investors. Additionally, the Prime Minister also approved Thai Nguyen province to add 4 Industrial Zones and 11 Industrial Clusters, bringing the total area to over 6,200 hectares.

In the future, to help factory rental service investors in Thai Nguyen attract more FDI electronics enterprises in particular and domestic enterprises in general, the province will pay more attention to aspects such as improving the investment and business environment through solutions like administrative reform, and promoting the construction progress of key routes to connect neighboring provinces/cities,…

3. Development of transportation infrastructure in Thai Nguyen province

Thai Nguyen has been and continues to focus resources on building socio-economic infrastructure to attract investment, focusing on transportation infrastructure with interconnected transportation projects, such as the Thai Nguyen – Bac Giang – Vinh Phuc connecting route, the 133 km long Ring Road 5 running through Hanoi – Ha Nam – Hai Duong – Hoa Binh – Thai Binh – Bac Giang – Vinh Phuc…

And many infrastructure projects for industrial zones and clusters to increase the attraction of FDI investment in the coming time, aiming to become a modern industrial center in the region. It is expected that in 2024, key routes in Thai Nguyen will be highly connected and put into use to create space to attract FDI and domestic investment.

4. Human resource development in Thai Nguyen province

The quality of human resources is one of the factors attracting businesses to invest in Thai Nguyen. Therefore, Thai Nguyen has continuously implemented many activities to train skilled workers to meet the needs of current industries.

Educational institutions and the Department of Labor, War Invalids and Social Affairs of Thai Nguyen have coordinated to bring about strong transformations in Thai Nguyen, improving the quality of human resource training towards meeting the actual requirements of enterprises.

The skilled labor force in Thai Nguyen reaches 71%

Currently, the rate of skilled labor in Thai Nguyen reaches 71%, higher than the national average. The goal of Thai Nguyen province by 2025 is to increase this rate to 75% of trained workers for factory rental service providers in Thai Nguyen and other businesses .

Thai Nguyen is increasingly receiving attention and investment from FDI enterprises in the fields of electronics, refrigeration, and supporting industries. This creates a great opportunity for training institutions to not only upgrade but also create a generation of high-quality workers, suitable for development trends, and change the production thinking ability of young workers. This is also the goal and task that Thai Nguyen province aims for in 2025.

5. GNP Yen Binh 1 & GNP Yen Binh 2 in Thai Nguyen

Gaw NP Industrial’s ready-built factories in Thai Nguyen

In Thai Nguyen province, the most prominent is GNP Yen Binh 1 & GNP Yen Binh 2 Industrial Center by Gaw NP Industrial. The ready-built factory products of GNP Yen Binh 1 & GNP Yen Binh 2 Industrial Center have outstanding features such as:

• Clear height: 6.5 meters
• Column-free design to optimize usage area
• Power source: Maximum 250 – 500 KVA/unit with 3-phase source
• Floor load: 2 – 2.5 tons/m2

Besides, GNP Yen Binh 1 & GNP Yen Binh 2 is also equipped with a wastewater treatment system, fire protection system, 24/7 security system, internet and telecommunication system… Factory rental in Thai Nguyen always strictly adheres to standards on environmental protection and labor safety. Furthermore, with an area of 29.5 hectares, GNP Yen Binh 1 & GNP Yen Binh 2 also integrates a shared warehouse model with factories to support production enterprises and have the best storage place, optimizing costs for businesses.

GNP Yen Binh 1 & GNP Yen Binh 2 attracts many FDI electronics businesses

In terms of geographical location, GNP Yen Binh 1 & GNP Yen Binh 2 is located in a convenient logistics chain for connection and trade to domestic and foreign provinces such as:

• To Vietnam – China border gate: 140 km (140 minutes)
• To Noi Bai International Airport: 30 km (30 minutes)
• To Hanoi Capital: 60 km (60 minutes)
• To Cai Lan Port: 150 km (110 minutes)
• To Lach Huyen Deep Water Port: 160 km (120 minutes)
• To Cat Bi International Airport: 160 km (120 minutes)

As it is located in a prominent economic zone of Thai Nguyen province, businesses using factory rental services in Thai Nguyen here also enjoy attractive investment incentives:

• Incentives such as corporate income tax exemption for the first 2 years and 50% reduction for the next 4 years
• 0% import and export tax and VAT for export processing enterprises
• Preferential industries, including: electronics, metal, plastic, phone, components and semiconductor equipment, high-tech industry.

5. Conclusion

The advantages of Thai Nguyen province in particular and the North in general explain why many FDI electronics businesses choose Vietnam for investment.Additionally, if businesses are looking for solutions and need advice from a reputable factory rental unit in Thai Nguyen, they can contact the Hotline +84 789 75 77 88 to be answered by the Gaw NP Industrial team.

>>> See more: Factory for rent in Thai Nguyen: high demand due to strategic location

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