Key Insights on Vietnam’s Largest Industrial Zones in 2026 for Foreign Investors

Global manufacturing companies looking to diversify their supply chains and reduce risks are turning to Vietnam. The country offers stable politics, steady economic growth, low inflation, rising foreign investment, a young and hardworking population, and fast-growing industrial zones.

In 2025, Vietnam achieved 8.02% GDP growth, with its industry sector expanding nearly 9%. Foreign direct investment (FDI) stayed strong, and positive momentum continued into 2026. This easy-to-read guide explains Vietnam’s industrial opportunities, key locations after the 2025 mergers, real costs, incentives, and clear steps to help you succeed.

Vietnam’s Growing Industrial Landscape in 2026

Vietnam now has more than 400 planned industrial zones. About 300 of them are already operating, with average occupancy rates between 80% and 85%. Many ready-built factories reach even higher occupancy — around 88% nationwide.

On July 1, 2025, Vietnam merged several provinces. This change created bigger and better-managed areas that make it easier to get permits, build infrastructure, and start operations.

What happened in 2025?

• Northern areas: Strong demand for electronics and high-tech industrial projects, with occupancy around 80–87%.
• Southern areas: Even higher occupancy of 89–92%, thanks to busy activity in Ho Chi Minh City and nearby regions.

Good news for the future: From 2024 to 2027, Vietnam is adding thousands of hectares of new industrial land and millions of square meters of factories and warehouses. This extra space helps meet growing demand from international companies.

Rental Costs in Industrial Zones (2025–2026 update):

• North: Average US$139–166 per m² (for the remaining lease period).
• South: Average US$170–200 per m².

Rents are rising slowly (3–8% per year). Choosing your location early helps you get better prices and more room to grow later.

Read More: Doing Business in Vietnam as a Foreigner: What, Where, Why, How?

Rental Costs in Industrial Zones (2025–2026 update):

• North: Average US$139–166 per m² (for the remaining lease period).
• South: Average US$170–200 per m².

Rents are rising slowly (3–8% per year). Choosing your location early helps you get better prices and more room to grow later.

Investing in Vietnam? Check Out InCorp’s Incorporation Services in Vietnam

Key Industrial Hubs After the 2025 Mergers

The provincial mergers created larger, more efficient industrial areas. Here is a simple breakdown of the best regions.

Northern Industrial Hubs 

Hanoi – Center for High-Tech Industry

Hanoi is the capital of Vietnam and is situated in northern Vietnam on the western bank of the Red River, about 85 miles (140 km) inland from the South China Sea. The City has a population density considerably higher in the urban area, approaching 20,100 per square kilometer. 

Hanoi has been developing several critical industries selectively during 2021-2015, focusing on the sectors and products using cutting-edge technologies and having high added value. The development of high-tech businesses with significant export potentials, such as digital control, automation, robotics, nano, plasma, laser, and biotechnology, is gradually changing the City’s industrial sector.

Other manufacturing sectors, such as motor vehicles, shipbuilding, food processing, steel, petrochemicals, and software, have been identified as crucial.

Hanoi has been developing industrial parks for the 2021-2025 period. Hanoi has 70 operational industrial clusters and grasslands in 17 districts and towns, covering 1,868 hectares and contributing significantly to economic development and social welfare.

One of the most well-known industrial parks is Hoa Lac Hi-tech Park, which services businesses in the commerce and software development industries. It is the first and largest hi-tech park in Vietnam, with a total area of 1586 hectares in Hanoi’s Capital. The park consists of the following main function industrial zones:

• Software development zone
• Training and research zone
• High-tech industrial zone
• Residential zone
• Service zone

Read More: Hanoi Business Incorporation Guide: Opportunities, Requirements, and How-To Steps

Hai Phong (now includes Hai Duong) – Major Port Industrial Hub

Hai Phong is one of the largest and most important seaports in Northern Vietnam. It is also one of the most modern seaports in Southeast Asia, with advanced navigation and networking facilities. Hai Phong Port handles large cargo and passengers and is an essential gateway for Vietnam’s trade with other countries. The port is located on the coast of the Gulf of Tonkin, which is one of the busiest shipping lanes in the world.

Industry is critical in Haiphong, including food processing, light, and heavy industries. Some major industries in Haiphong are shipbuilding, textiles, cement, paper, steel, and chemicals. Haiphong has traded goods with more than 40 countries and territories worldwide. Haiphong is also home to many factories and industrial parks. It is striving to become one of the largest commercial centers in the country.

As of July 1, 2025, the newly consolidated Hải Phòng province (now including former Hải Dương) continues to oversee its 12 major industrial parks within Hải An, An Dương, and Thủy Nguyên districts, with improved regional connectivity and expanded labor markets

Most of the large industrial parks in Hai Phong are in three districts: Hai An, An Duong, and Thuy Nguyen. These districts share the same borders and have good access to the airport, the seaports, and main roads like National Highway 5A.

Central Industrial Hubs

Da Nang – Modern and Balanced Industrial Hub

Da Nang is a clean, well-planned city with strong port facilities. It supports machinery, electronics, chemicals, and shipbuilding. The city has six main industrial parks totaling over 1,066 hectares. Lien Chieu Industrial Park (1,200 hectares) is especially popular for electronics and high-tech projects.

The wider Quang Nam–Da Nang zone now has simpler administration, making it easier to get land and build facilities.

Danang’s key industries include machinery, electronics, chemicals, and shipbuilding. Shipbuilding is an attractive industry, with the South China Sea tensions boosting demand for naval and coast guard ships.

Danang City has six concentrated industrial parks, including Hoa Khanh, Da Nang, Lien Chieu, expanded Hoa Khanh, Hoa Cam, and Danang Fisheries Services, with a scale of 1,066.52 ha. Lien Chieu Industrial Park is one of them, located in Lien Chieu district, Danang city. The park has an area of 1,200 hectares and is expected to attract investment in electronics, mechanics, and high-tech industries.

Read More: Doing Business in Danang: Reasons to Invest in Vietnam’s Industrial Parks and Alternative Investment Destination

Quang Nam – Danang economic zone

The Quang Nam– Danang economic zone is one of the key industrial zones in Central Vietnam. It comprises Thua Thien Hue, Danang, Quang Nam, Quang Ngai and Binh Dinh provinces. This region plays a significant role in the socioeconomic development strategy and ensures the security and defense of the Central Coast and Central Highlands.

The primary industries in the Quang Nam: Da Nang economic zone are food processing, textiles, building materials, and paper and forest products. However, oil and gas, shipbuilding, logistics, and other high-tech industries will increase in the next few years.

Several industrial parks are in the Quang Nam – Da Nang economic zone. Some of the prominent ones include:

• Dien Nam – Dien Ngoc Industrial Park: Located in the Dien Ban district, Quang Nam province’s Dien Nam and Dien Ngoc communes. The park has a 418-acre surface area.
• Hoa Cam Industrial Park: Located in Cam Le District, Danang City. The park covers an area of 261 hectares.
• Lien Chieu Industrial Park: Lien Chiểu Industrial Park now operates under the unified administration of the new Da Nang province (merging Quang Nam) to streamline land allocation and infrastructure development across the expanded zone.

Read More: Competitive Advantages of Doing Business for Foreigners in Quang Nam Province, Vietnam

Southern Industrial Hubs

Ho Chi Minh City (now includes Binh Duong and Ba Ria-Vung Tau)

Ho Chi Minh is the largest city in Vietnam. The City is located on the Saigon River and is Vietnam’s principal port and largest City, with an estimated population of over eight million. The City covers about 2,061 km2.

Ho Chi Minh City is home to several key industries and sectors. Some of the prominent ones include:

• Textile and garment industry: The city is one of the largest textile and garment manufacturing centers in Vietnam
• Electronics industry: The city has a growing electronics industry with several multinational companies having their manufacturing plants in the city
• Food processing industry: The city has a well-developed food processing industry with several large companies having their manufacturing plants in the city
• Chemical industry: The city has a well-developed chemical industry with several large companies having their manufacturing plants in the city.

As of July 1, 2025, Ho Chi Minh City has expanded to include former Bình Dương and Bà Rịa–Vũng Tàu provinces, creating a mega-urban zone with over 14 million residents and streamlining industrial governance.

Some of the notable industrial parks in Ho Chi Minh City include:

• Hiep Phuoc Industrial Park: Located in Nha Be District, Ho Chi Minh City. With a total area of 1,686 hectares, Hiep Phuoc is the largest industrial park in the city
• Saigon Hi-Tech Park: Located 15 km from downtown Ho Chi Minh City, opposite Thu Duc University Village. The park covers an area of 326 ha (95% utilized) and is currently being expanded to 913 ha.
• Tan Tao Industrial Park: Located in Binh Tan District, Ho Chi Minh City. The park covers an area of 400 hectares and is home to over 200 companies.

Dong Nai (now includes Binh Phuoc)

Southeast Vietnam’s Dong Nai province may be near Ho Chi Minh City. It is part of Vietnam’s southern critical economic region and has attracted investments in electronic component manufacturing, textile and garment production, and tech-intensive industrial goods manufacturing.

Dong Nai has attracted investments in the production of textiles and apparel, electronic component manufacturing, and technologically complex industrial items.

Some of the major industrial parks in Dong Nai include:

• Amata Industrial Park: Located in Bien Hoa City, Dong Nai Province. The park covers an area of 700 hectares and is home to over 200 companies
• Long Duc Industrial Park: Located in Long Thanh District, Dong Nai Province. The park covers an area of 400 hectares and is home to over 100 companies
• Song May Industrial Park: Located in Trang Bom District, Dong Nai Province. The park covers an area of 300 hectares and is home to over 100 companies

Following its merger with Bình Phước effective July 1, 2025, the expanded Dong Nai province is poised to leverage its enlarged territory and population for enhanced industrial and agricultural development.

Can Tho and Long An – Agro and General Industry

Can Tho is the largest city in the Mekong Delta, located on the western bank of the Hau River, and is the economic and cultural center of the region. It is also the gateway to the floating markets, the biggest tourist attraction in the area. 

Can Tho is known for its agricultural products such as rice, fruit, and fish. The City is also home to many industrial parks and factories that produce textiles, garments, footwear, and other consumer goods.

Several industrial parks in Can Tho are prominent. Two of them are the Tra Noc 1 and 2 industrial parks. These parks have been transformed into eco-industrial park models, saving 19,000 tons of oil, 30,000 tons of coal, 600,000 m3 of water, and 130,000 tons of CO2.

Why Companies Choose Vietnam’s Industrial Hubs

Vietnam Emerges as a Top Destination for Foreign Manufacturing Companies

In recent years, Vietnam has solidified its position as a top destination for foreign manufacturing companies seeking to diversify and increase the resilience of their supply chains. With a stable political system, commitment to sustainable growth, relatively low inflation, strong FDI inflows, a youthful and digital population, and a robust manufacturing sector, Vietnam continues to offer an extraordinary opportunity for international investors.

FDI inflows have been equally impressive. In 2025, Vietnam attracted US$27.62 billion in foreign direct investment, the highest level in five years. This momentum has continued into 2026, with total registered FDI in the first two months reaching US$3.54 billion, up 61.5% year-on-year. Realised FDI in the first four months of 2026 is estimated at US$7.40 billion, up 9.8% year-on-year.

Following provincial mergers effective July 1, 2025, key manufacturing hubs now include Ho Chi Minh City (incorporating former Binh Duong and Ba Ria–Vung Tau), Dong Nai (expanded with Binh Phuoc), Da Nang (merging Quang Nam), and Hai Phong (merging Hai Duong). These mergers have streamlined administrative processes and created larger, more coherent industrial zones with expanded labor markets and improved regional connectivity.

Strategic Location and Advantages in Shipping

Vietnam has emerged as a desirable destination because of its strategic position in Southeast Asia. As international corporations look to reduce their dependence on China and take advantage of regional growth potential, Vietnam’s location offers a compelling alternative. The 1,450 km East–West Economic Corridor – stretching from Myanmar through Thailand and Laos to Vietnam – plays a vital role in strengthening regional connectivity, expanding trade, attracting investment, and facilitating faster, lower‑cost logistics for export‑oriented manufacturers. Recent forums in April 2026 between Vietnam and Laos have reaffirmed commitments to enhance this corridor, with over 20 memoranda of understanding signed for the 2026‑2030 period, covering areas such as seaport and coastal zone development, cross‑border e‑commerce, renewable energy, and telecommunications infrastructure. Deep‑water ports in Hai Phong, Da Nang, and Cai Mep – many of which have recently undergone expansion – provide world‑class infrastructure for global trade.

Competitive Labor Costs

One of the key advantages that makes Vietnam an attractive destination for foreign manufacturing companies remains its competitive labor costs, although the gap with China has narrowed. Under Decree No. 293/2025/ND-CP, effective January 1, 2026, regional minimum wages were raised by an average of 7.2%. The new monthly minimum wages are:

Region I (Hanoi, HCMC, Hai Phong, Vung Tau, Bien Hoa): VND 5,310,000 (approximately US$204)
Region II (Hanoi/HCMC suburbs, Hue, Da Nang, Hai Duong): VND 4,730,000 (approximately US$182)
Region III (provincial cities): VND 4,140,000 (approximately US$159)
Region IV (rural areas): VND 3,700,000 (approximately US$142)

In practice, once mandatory social insurance, health insurance, and unemployment insurance contributions are included, employers should budget around US$250 to US$350 per month for unskilled labor.

Tax Incentives, Cost Advantages, and Efficient Taxation Policies

Vietnam’s manufacturing sector continues to attract foreign investment thanks to its competitive tax incentives, cost‑efficiency, and favorable taxation policies. However, note that the Amended CIT Law, effective January 1, 2026, tightened eligibility criteria – incentives are no longer automatic based solely on location but are now awarded based on project quality, technology content, and environmental impact. The standard CIT remains 20%.

Below is a summary of key tax incentives available in 2026:

Incentive	Rate	Duration & Notes
Standard CIT	20%	Applied to most manufacturing activities; standard rate since October 1, 2025
High‑tech / strategic tech activities	10%	Up to 25 years; includes 4‑year exemption + 9 years at 50% reduction
Large‑scale digital semiconductor projects	5%	For 37 years (6‑year exemption + 13 years at 50% reduction); investment ≥ VND 6,000 billion (~US$250 million)
Newly established SMEs	Exemption	3‑year CIT exemption from date of enterprise registration certificate
Startups	2‑year exemption + 4 years at 50%	Applies to innovative startups

Import Duty Exemptions: Machinery, equipment, and raw materials not locally produced are exempt from import duties, helping to reduce operating costs. Vietnam’s labor costs remain 40‑50% lower than China’s, offering a significant advantage in regional cost efficiency.

VAT Incentives: The standard VAT is 10% , but a 2% reduction (to 8%) has been extended to December 31, 2026, under Government Decree No. 174/2025/NĐ‑CP, covering a wide range of goods and services. Other VAT rules include:

• 0% for exported goods, non‑tariff areas, and export processing enterprises (EPEs)
• 5% for essential goods like foodstuffs, medical products, and agriculture
• Standard 10% for other manufacturing activities (with 8% temporary reduction until year‑end 2026)

These efficient taxation policies and cost advantages, coupled with the country’s efforts to foster a business‑friendly environment, strengthen Vietnam’s position as a competitive manufacturing hub in the region.

Free Trade Agreements (FTAs)

Vietnam is now party to 18 active FTAs — with two more under negotiation — providing preferential market access, reduced tariffs, and smoother trade flows with major partners such as the EU, Japan, and South Korea. These FTAs provide foreign businesses with preferential access to key global markets, reducing tariffs and facilitating smoother trade with major economies like the EU, Japan, and South Korea. This trade-friendly environment enhances Vietnam’s competitiveness, positioning it as a top choice for foreign investors seeking to capitalize on the country’s growing industrial sector.

In addition to the advantages provided by FTAs, Vietnam offers appealing tax incentives, such as preferential corporate income tax rates, import duty exemptions, and VAT incentives for manufacturers. The country’s labor costs are also 40-50% lower than China’s, providing a significant cost advantage. Together, these factors create a compelling business environment for foreign manufacturers, enabling them to reduce operational expenses, access global markets, and benefit from a skilled, affordable workforce.

Read More: The Definitive Guide to Vietnam’s 16 Active Free Trade Agreements – FTAs

2025–2026 Legal Updates in the Manufacturing Industry

Vietnam’s manufacturing industry has seen several recent legal updates aimed at improving the regulatory environment and aligning with international standards. These changes cover areas such as investment procedures, environmental regulations, labor laws, and tax policies. The updates are designed to enhance transparency, simplify administrative processes, and create a more favorable business climate for both local and foreign investors. 

Environmental Protection

• Decree 153/2024/ND-CP (effective Jan 5, 2025): Environmental protection fee on air emissions from industrial facilities.
• Decision 482/QD-TTg (March 2026): Temporary zero tax on fuel EPT until June 30, 2026.

Investment Law (Major Change)

• Amended Investment Law (effective March 1, 2026) : Foreign investors can now get an Enterprise Registration Certificate (ERC) before the Investment Registration Certificate (IRC) – cuts setup time.
• Fast‑track mechanism for projects in industrial parks, hi‑tech zones, and free trade zones.
• Decree 96/2026/ND-CP (March 31, 2026) provides implementation guidance.

Global Minimum Tax (Pillar Two)

• Decree 236/2025/ND-CP (effective Oct 15, 2025): Applies to MNEs with consolidated revenue ≥ €750 million. Effective 15% minimum CIT for fiscal years starting on or after Jan 1, 2024. Affected firms should now focus on non‑tax incentives (grants, land rent reductions).

Labor – Minimum Wage

• Decree 293/2025/ND-CP (effective Jan 1, 2026): Increased regional minimum wages by 7.2% → new monthly minimums: Region I: VND 5.31M (~204)∗∗downto∗∗RegionIV:VND3.7M( 204)∗∗downto∗∗RegionIV:VND3.7M( 142) .

Customs

• Circular 121/2025/TT-BTC (effective Feb 1, 2026): Digital customs via VNeID; “release first, value later” for low‑risk shipments; stricter post‑clearance audits.

Digital Technology Industry Law

• Law 71/2025/QH15 (effective Jan 1, 2026): CIT exemption for first 2 years + 50% reduction for next 4 years for qualifying digital tech firms (AI, software, semiconductors).

Tax Updates

• CIT (Amended Law, effective Oct 1, 2025) : 10% preferential rate for 15 years now tied to high‑tech, R&D, green projects – no longer automatic.
• VAT (Decree 174/2025/ND-CP) : 8% reduced rate extended until December 31, 2026.
• PIT (Amended Law, effective Jan 1, 2026) : Increased personal deduction to VND 15.5M/month; dependent deduction to VND 6.2M/month; simplified tax brackets.

Land Law & Social Insurance

• Resolution 254/2025 (effective Jan 1, 2026): Clarifies land allocation and leasing for industrial projects.
• Social Insurance Law (effective July 1, 2025): Expanded coverage, continues into 2026.

Looking to navigate Vietnam’s evolving industrial regulations? Check our Tax and Legal Advisory Services

Conclusion

In conclusion, Vietnam’s manufacturing industry has seen a significant uptick in foreign investment, driven by its strategic location, competitive labor costs, efficient taxation policies, and a growing network of trade agreements with key global partners. The government’s continued focus on attracting high-tech industries through incentives and FDI support policies further enhances the country’s appeal. As Vietnam positions itself as a digitally-driven, technology-ready economy, the prospects for its manufacturing sector remain highly promising. More investors are looking to expand into Vietnam, recognizing it as a stable, future-focused destination for production.

For those considering investment in Vietnam’s manufacturing sector, partnering with a trusted advisor like InCorp can be instrumental to success. Our expertise in site selection, particularly based on industry clusters, ensures that businesses find the optimal location for their operations. We assist in partnering with local suppliers and logistics providers to streamline supply chains and reduce costs. By leveraging key trade agreements like CPTPP, EVFTA, and RCEP, companies can take advantage of significant tariff benefits. Additionally, InCorp supports workforce training and localization to ensure long-term operational success and stability in Vietnam’s evolving business landscape.