Since the beginning of the year, the global market has shown signs of recovery, leading to an increase in orders across traditional markets. As a result, enterprises operating in Vinh Phuc industrial parks (IPs) have experienced good growth in their production and business outcomes compared to the same period in 2023.
Jahwa Vina Co., Ltd at Khai Quang Industrial Park
According to the Vinh Phuc Industrial Zones Management Board, several key industrial products showed significant growth in the first nine months of 2024 compared to the same period last year. The electronics industry recorded an estimated revenue increase of 14%. Noteworthy projects include Partron Vina (+30%), Jahwa (+31%), DKT (+31%), Amo Vina (+66%), BH Flex (+26%), Yingtong (+66%), Compal (Vietnam) (+47%), Minh Duc (+17%) and Arcadyan (+38%).
The electronics sector comprises over 43% of the total enterprises investing in Vinh Phuc province's industrial parks, offering a diverse range of products including laptops, smartphones, headphones, high-end Wi-Fi transmitters and support components for Samsung Electronics. With stable orders and markets, electronics companies have experienced good growth in business indicators compared to the same period last year, contributing to the overall expansion of the industrial parks.
Other industrial sectors also showed strong performance, with revenue increases of over 30%. Notable examples include Cosmolink (+48%) and Nippon Paint (+22%). New projects like Accton and Assa Abloy further boosted growth in the sector.
The automotive and motorbike spare parts industry remained stable, with some enterprises posting solid growth. Meisei saw a 16% increase; Lam Vien, 12%; Kingduan, 16% and Star Engineers, 26%.
The construction materials manufacturing sector experienced slight growth after a period of stagnation in the real estate market. Notable increases included Prime Group at 10% and Viet Duc Steel at 18%, while Vitto Bricks reported revenues at around 80% of last year’s figures.
Despite these positive developments, some sectors faced challenges due to decreased purchasing power. The automobile and motorbike manufacturing and assembly industry experienced a 10% revenue decline. The textile industry also declined by 18%.
As of September 15, 2024, Vinh Phuc’s industrial parks host 416 active projects, comprising 337 foreign direct investment (FDI) projects and 79 domestic direct investment (DDI) projects. This represents 84.04% of the total number of investment projects.
Among the 79 projects not yet in operation, 14 are in the construction and installation phase of factory machinery and equipment, accounting for 2.83% of total projects. Additionally, 4 projects are engaged in land compensation and clearance, making up 0.81% of the total. There are 57 newly licensed projects and those in various stages of implementation procedures, which constitute 11.51% of the total. Furthermore, 4 FDI projects are experiencing delays in progress and are in the process of terminating operations, also representing 0.81% of the total.
It is expected that 13 more projects will commence production and business operations in the final three months of the year, including nine FDI projects and four DDI projects. The estimated investment for these FDI projects is approximately US$90-100 million, while the capital for DDI projects is projected to be between VND500-700 billion.
By Quynh Ngoc, Vietnam Business Forum
03/4/2025
Ho Chi Minh City
Vietnamese
