Vinh Phuc Province, destination for global corporations

Prime destination for global corporations

Billionaire Richard Chandler, representing Hoan My Medical Corporation, expressed his desire to develop the Hoan My Vinh Phuc General Hospital project. The proposed hospital would have a capacity of 200 to 300 beds, cover an estimated area of 20,000sq.m, and require a total investment of approximately VND1 trillion.

Automobile assembly at Toyota Hiroshima Vinh Phuc

In response to the proposal, Chairman Tran Duy Dong has requested local departments and agencies to thoroughly study and identify a suitable location with sufficient space for the project. This would ensure that the project is implemented in line with the province’s planning and in accordance with legal regulations.

In late August 2024, during a working session with Chairman Tran Duy Dong, Choi Joo Ho, General Director of Samsung Vietnam, expressed interest in the investment environment in Vinh Phuc. He noted that Samsung has over 40 tier-1 supporting industry enterprises in Vinh Phuc, creating jobs for more than 47,000 workers.

Currently, Vinh Phuc is a destination for many global corporations, including major names, such as Honda, Toyota, Piaggio, Foxconn, Nissin, Exedy, and Sumitomo. These corporations have been operating effectively in the province. Notably, Honda Vietnam, established and operational since 1996, has continuously developed over the past nearly 30 years, solidifying its position in the motorcycle and automobile sectors, meeting consumer demand. Honda’s total investment in Vietnam has exceeded US$500 million, contributing more than VND40 trillion to the State budget and creating jobs for over 10,000 workers. Honda Vietnam currently operates three motorcycle factories, one automobile factory, four supporting plants, and a parts center, raising the localization rate to an average of over 96 percent.

Similarly, Toyota Vietnam was established in 1995 and is regarded as one of the Toyota plants with the best vehicle production quality in the Asia-Pacific region. This achievement is attributed to the application of the essence of the Toyota Production System (TPS), the Kaizen spirit (continuous improvement), and particularly the high skill levels of its workforce.

As of April 2024, Toyota Vietnam has established partnerships with 60 parts suppliers, including 13 Vietnamese suppliers, with the localization of over 1,000 different products.

Vinh Phuc Province attracts investment in high-tech industries

Continuous improvement of investment environment

Currently, Vinh Phuc Province has 19 industrial parks (IPs) approved by the Prime Minister, 16 of which have received investment decisions, investment certificates, and investment registration certificates, covering a total planned area of nearly 3,157ha. Eight of these IPs are now operational.

Some IPs have reached 100-percent occupancy, such as Kim Hoa, Ba Thien II, Binh Xuyen II (Phase 1), and Ba Thien II. Other IPs with high occupancy rates include Khai Quang (98 percent), Binh Xuyen (97 percent), and Thang Long - Vinh Phuc (86 percent).

According to Vinh Phuc Province’s planning for the 2021-2030 period, the locality will invest in five new IPs, raising the total number of IPs in the province to 24, with a total land area of 7,000ha, which is expected to reach 10,000ha by 2050. New IPs will be developed near major urban areas, adjacent to the capital city of Hanoi, and close to key transportation routes, such as the Hanoi-Lao Cai Expressway and Ring Roads 4 and 5.

The leadership of Vinh Phuc Province has stated that the locality will prioritize attracting investment projects with high technological content, which use advanced technology and modern management methods, create high added value, have a ripple effect and facilitate technology transfer. Vinh Phuc is innovating its investment promotion methods, aiming to attract large-scale projects to serve as the nucleus for the province to attract satellite projects, forming production, manufacturing, supply, and service clusters./.