Bac Ninh Poised to Become Leading Center for Processing and Manufacturing

4:40:23 PM | 11/17/2023

Bac Ninh province is on a trajectory to become the foremost center for processing, manufacturing, and high-tech services in Vietnam by 2030, evolving into a hub for high-tech innovation, research, and development in Southeast Asia by 2050.

Bac Ninh aims to position itself as the country's electronics industry center

The industrial sector is a major contributor to the economy

Transitioning from an agrarian province with limited infrastructure, Bac Ninh has evolved into a modern industrial powerhouse. The province's economy has consistently surged, with a yearly growth rate of 1.8% in the gross regional domestic product (GRDP) from 2021 to 2023. The Industrial Production Index maintains a robust recovery, and foreign investment has surged, with 384 projects licensed this year, totaling over US$1.31 billion in registered investment capital.

As of September 2023, Bac Ninh boasts 2,040 valid FDI projects, with a total registered investment capital of US$24.62 billion, with processing and manufacturing projects constituting 70% of the total. Key investors, including industry giants like Samsung, Foxconn, Canon, PepsiCo, Amkor, GoerTek, and VSIP, underscore Bac Ninh's appeal as an investment destination.

Ms. Nguyen Huong Giang, Chairwoman of Bac Ninh Provincial People's Committee, outlined the province's strategic shift, aiming to position Bac Ninh as the country's electronics industry center. Drawing investors from advanced industrial regions such as Japan, South Korea, the European Union, and the United States, the province has become a magnet for modern industrial production.

Currently, high-tech industrial products contribute 86% to industrial production, with the electronics industry driving over 80% of the overall industrial production value. The development of supporting industries has led to the formation of interconnected clusters, with numerous businesses becoming Tier 1, 2, and 3 suppliers for foreign-invested firms, actively participating in the global value chain.

According to the Bac Ninh Provincial Planning for the 2021-2030 period, with a vision to 2050, Bac Ninh aims to become a centrally run city and Vietnam's leading center for processing, manufacturing, and high-tech services by 2030. By 2050, the goal is to be a pivotal center for high-tech innovation, research, and development in Southeast Asia.

To achieve these goals, Bac Ninh plans to prioritize the development of electronic equipment manufacturing, aviation parts manufacturing, high-tech equipment manufacturing, pharmaceutical production, medical industrial equipment production, and high technology.

The province envisions itself as the leading center for manufacturing complete electronic products in Vietnam, with a specific focus on high-value segments such as smartphones and smart wearable devices. Additionally, Bac Ninh aims to enhance its position in the electronics value chain, integrate with research, development, and design, and become the semiconductor hub of Vietnam. Diversification into other production industries and the adoption of green and renewable energy for industrial production are also part of the strategic plan.

Motivation for sustainable development

Bac Ninh province is located at the northern gateway of the national capital city of Hanoi and in the Hanoi-Hai Phong-Quang Ninh Economic Triangle, which provides it with a lot of comparative advantages for economic development and investment attraction.

 The manufacturing and processing sector is considered the key to quicken industrialization and modernization, in addition to boosting existing capacities. In the coming time, Bac Ninh will constantly add motivation and create new advantages for sustainable development.

To achieve this, the province will speed up investment progress in site clearance, complete infrastructure, and launch industrial parks to attract more investors. Industrial parks are invested with synchronous and modern infrastructure, with abundant and stable social benefits, and guaranteed security for people and workers.

In addition, the province will improve the effect of investment promotion by reforming its contents and approaches and targeting key project chains and fields. It will foster cooperation with central agencies and embassies of other countries to organize diplomatic events and foreign affairs and expand economic exchange cooperation. Moreover, the province will actively connect and support industrial firms to become product suppliers for domestic and international customers.

Furthermore, the province will continue to research and introduce incentive policies to attract FDI investors into the industrial sector. The province will prepare available land fund, complete infrastructure development, especially transportation infrastructure; and facilitate businesses and investors to access land resources, electricity, water and communications as well as tax incentives, access to capital, labor training and recruitment.

Bac Ninh province is committed to improving its investment environment by streamlining administrative procedures, removing obstacles for investors, and providing them with the best possible support. In addition to general regulatory incentives, the province has implemented its own incentive mechanisms and policies, such as providing legal support for businesses, establishing a business doctor model, and creating a business support working group. Furthermore, the province has established a public administration center and launched the District and Department Competitiveness Index (DDCI Bac Ninh) to further enhance its competitiveness and attract more investment opportunities.

By Vietnam Business Forum