Hung Yen 2030 Vision: Becoming Vietnam's Next Industrial Hotspot

Situated in the Red River Delta, Hung Yen consists of 10 districts and spans an area of 930.20 km². Strategically located within the northern key economic zone and the Hanoi–Hai Phong–Quang Ninh economic triangle, Hung Yen serves as the eastern gateway to Hanoi, offering numerous advantages such as economic growth, improved infrastructure, and social progress. With a population of approximately 1.3 million and a steady upward trend since 1996, Hung Yen continues to strengthen its position as a vital economic and industrial hub in northern Vietnam.

Current landscape

There are currently 17 industrial parks in the province with a total area of over 4,300 hectares, among that 11 have been operated and successfully attracted investments from big companies like Mektec Manufacturing, Hoya Glassdisk, Canon. Industrial production index up to 11% with food processing, furniture, electronics, computer numerical control are the most attractive fields. Among the countries investing in the province, Japan is the largest investor with 51% of total registered capital. This is followed by South Korea with 12%.

With sustained industrial growth and rising public investment, Hung Yen’s economy in 2024 has shown promising prospects for the future. In the first nine months of 2024, Hung Yen Province experienced notable economic growth, achieving an estimated 8.07% increase, according to the provincial statistics office. This robust performance was driven by multiple sectors:

Agriculture: This sector saw modest growth of 1.71%, reflecting the steady development of farming and related activities.

Industry and construction: The industrial and construction sectors surged by 10.93%, powered by the rapid expansion of industrial enterprises. Key sectors such as electronics and computers rose by 37%, precast metal products by 23%, pharmaceuticals by 20%, motor vehicles by 15%, and furniture by 25%. Major construction projects, like the urban developments in Vinhomes Ocean Park Hung Yen and Ecopark Van Giang, bolstered growth, alongside increased public investment in civil engineering projects.

Commerce and services: This sector expanded by 2.59%, contributing to overall economic stability.

Product taxes minus subsidies: An increase of 10.72% further enhanced the province’s economic performance.

Budget revenues reached over 30 trillion VND (approx. US$1.2 billion), marking a 26.78% year-on-year rise. Domestic revenue, driven by strong internal economic activity, totaled 27 trillion VND, while export-import revenues rose 25%, contributing 3.28 trillion VND.

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Industrial-focus planning for the 2021-2030 period

Hung Yen’s master plan for 2021–2030, with a vision extending to 2050, marks a pivotal step in the province’s industrialization strategy. By strengthening traditional growth drivers and introducing innovative development catalysts, the plan envisions transforming Hung Yen into a modern industrial province characterized by rapid yet sustainable growth. Approved by Prime Minister Pham Minh Chinh in June 2023, the master plan outlines a detailed roadmap for Hung Yen to emerge as a leading locality in terms of economic scale and growth.

The primary goals for Hung Yen in the master plan for the 2021-2030 period include:

GRDP to expand by 9% per year, with a per capita GRDP reaching VND287 million (US$11,291) by 2030;

Total social investment in the 2021-2030 period to hit about VND700 trillion (US$28 billion) by 2030;

Export revenue to reach US$12-13 billion each year by 2030, with a growth rate of 8.5-9% annually in the 2021-2030 period;

Becoming a centrally run city by 2050.

Hung Yen’s master plan envisions an area of over 930 km² and 10 administrative units, including Hung Yen City, My Hao Town, and the districts of An Thi, Khoai Chau, Kim Dong, Phu Cu, Tien Lu, Van Giang, Van Lam, and Yen My. To support this ambitious vision, the province will develop large-scale industrial parks (IPs) with state-of-the-art infrastructure that meets international standards and prioritizes sustainable development. It aims to establish 30 industrial parks (IPs) by 2030, spanning approximately 10,000 hectares to support its growing industrial sector. Looking further ahead, the province’s long-term vision includes expanding to 35 industrial parks, covering around 12,000 hectares. Currently, 10 industrial parks are fully equipped with modern infrastructure and ready to accommodate new investment projects, offering nearly 1,000 hectares of clean land for development.

In parallel, several other industrial parks are progressing through the investment approval process, including Ly Thuong Kiet Industrial Park, Tan Dan Industrial Park, Industrial Park No. 01, Industrial Park No. 06, and Van Nhue–Hoang Hoa Tham Industrial Park (also known as Tan A–Dai Thanh Industrial Park). These upcoming projects further enhance Hung Yen’s capacity to attract high-tech industries and foreign investment.

Why Hung Yen Should Be Your Next Destination for Manufacturing?

Favorable location for manufacturing

Located in Vietnam’s Red River Delta region, Hung Yen province spans approximately 923 square kilometers. Its strategic connections to major transportation networks—including highways, railways, and waterways—provide easy accessibility and make it a prime location for trade and commerce.

Hung Yen is positioned along two key economic corridors:

Kunming (China) – Lao Cai – Hanoi – Hai Phong

Nanning (China) – Lang Son – Hanoi – Hai Phong

As one of seven localities within the Northern Key Economic Zone (NKEZ), alongside Hanoi, Hai Phong, Quang Ninh, Vinh Phuc, Bac Ninh, and Hai Duong, Hung Yen enjoys significant logistical advantages. Its proximity to other rapidly developing provinces, such as Ha Nam and Thai Binh, further enhances its strategic importance.

30 km from central Hanoi (approximately 30 minutes by car)

55 km from Noi Bai International Airport (approximately 45 minutes by car)

92 km from Hai Phong Seaport (approximately 60 minutes by car)

State of infrastructure

Power infrastructure

Hung Yen has built a stable and efficient power supply system, comprising transformer stations and high-capacity 500 kV, 220 kV, and 110 kV power lines. This well-planned infrastructure ensures a consistent and reliable energy supply to meet the province’s growing demands. A key component of this network is the 500 kV Line 3 (Quang Trach–Pho Noi), which terminates in Pho Noi, a vital hub for commercial centers, banking, education, and advanced industrial zones. This strategic energy infrastructure significantly enhances Hung Yen’s ability to support continued industrial expansion and sustainable economic growth.

Transportation

Recognized as the eastern gateway to Hanoi, Hung Yen boasts a convenient and modern transportation network, strategically located near four national highways and other essential routes:

National Highway 5A (Hanoi – Hai Phong)

National Highway 39A (Hung Yen – Thai Binh)

National Highway 38 (Bac Ninh – Hai Duong – Hung Yen – Ha Nam)

National Highway 38B (Hai Duong – Ninh Binh)

Hanoi – Hai Phong Expressway

Hanoi – Hai Phong Railway

Red River and Luoc River waterways, connecting the Red River Delta region

In addition to its existing infrastructure, Hung Yen is benefiting from significant investments in major transportation projects, including:

Ring Road 4 (Hanoi – Hung Yen – Bac Ninh)

Cho Ben – Yen My Expressway

Hung Yen – Thai Binh Expressway

Youthful and skilled workforce

Hung Yen is home to a population of over 1.3 million, with a workforce of approximately 700,000. Of this, 69% are trained workers, including 31% who are classified as skilled, high-quality professionals, making the province an attractive destination for labor-intensive and high-tech industries. Strengthening this talent pool is a robust higher education system comprising 28 colleges and universities, which produce an average of 12,000 graduates annually. Furthermore, Hung Yen offers a competitive labor cost advantage, with monthly wages ranging between US$250–300 per worker, providing an ideal balance of quality and affordability for investors.

Attractive investment incentives

Hung Yen offers a wide range of incentives for investment in prioritized industries and industrial parks to promote industrial transformation. In general, eligible investors will enjoy:

Exemption from import tax to create fixed assets;

Investment in infrastructure within industrial parks;

Labor recruitment support;

Investment promotion activities; and

Labor training support.

Hung Yen offers preferential corporate income tax (CIT) incentives to attract investment in key sectors. Investors undertaking new investment projects in specialized fields, as defined by the CIT Law, benefit from a 10% CIT rate for 15 years, along with a four-year tax exemption and a 50% tax reduction for the following nine years. Additionally, enterprises investing in high-grade steel manufacturing, energy-saving products, agricultural machinery, forestry and fishery equipment, salt production, irrigation equipment, and animal, poultry, and aquatic feed production enjoy a 17% CIT rate, with two years of full tax exemption followed by a 50% tax reduction for the next four years. These incentives enhance the province’s attractiveness, offering significant cost savings for long-term investors.

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