Viet Nam's North-Central Region Sees Investment Boom: Nikkei Asia

9:34:11 AM | 1/24/2024

Foreign investment flows to the North-Central region of Viet Nam reached about US$2 billion in 2023, a 39 percent jump from the previous year, noted Nikkei Asia in its recent article.

Viet Nam Singapore Industrial Park - Nghe An

The region includes six provinces: Thanh Hoa, Nghe An, Ha Tinh, Quang Tri, Quang Binh and Thua Thien-Hue.

Regarding factors that have created momentum for investment in the region, Nikkei Asia said, travel between these provinces and Ha Noi has improved, thanks to a major arterial road.

Meanwhile, average monthly income in the North-Central region is about 30 percent to 40 percent below that in areas around Ha Noi or Ho Chi Minh City, according to government data.

According to Nikkei Asia, the low income levels indicate room for development in the North-Central region. Development in Southern Viet Nam has long been driven by the garment and textile industry, and the northern areas have enjoyed economic growth fueled by investments from South Korean companies since the 2010s.

Now the North-Central provinces have been busy attracting global companies, highlighted the article.

A report presented by Nghe An Provincial People's Committee Chairman Nguyen Duc Trung showed that the locality has been among the top 10 localities attracting foreign direct investment (FDI) for the last two years.

Nghe An has attracted 133 FDI projects from 14 countries and territories with total registered capital of more than US$4 billion.

In the five-year period since 2019, registered FDI capital in Nghe An Province stood at some US$3.4 billion, accounting for 85 per cent of the total.

In 2022 and 2023, the province received nearly US$1 billion and US$1.5 billion, respectively, ranking it among top 10 most attractive cities and provinces for FDI during the two-year period.

Source: VGP