The United States- China and the new infrastructure conflict give rise to the northern province Quang Ninh.
With its emerald green ocean and islets covered with moss, Halong’s bay in northern Vietnam (Quang Ninh province)- One of the New 7 Wonders of Nature since 2011- is one of the most popular destinations in the country, that attracts tourists from all over the world. In 2023, he welcomed about 2.6 million foreign visitors, representing 21% of Vietnam incoming tourists.
However, the province where Halong Bay is located has another face. Quang Ninh has recently become the largest receiver of foreign direct investment in Vietnam, surpassing Hanoi, the city of Ho Chi Minh and other large economic points, thanks to the global diversification of the supply chain and a new port in a nearby city.
According to data from the Vietnam General Statistics Office, Quang Ninh last year beat other provinces and the five largest cities in the country, receiving $ 3.1 billion of IDF (Foreign Direct Investment). The province of Thai Binh was the second destination, which attracted $ 2.68 billion, followed by Bac Giang province at $ 1.53 billion.
The province of Quang Ninh was expected to welcome another $ 1 billion in the first quarter of 2024 and will probably exceed $ 3 billion per second consecutive year.
The province, which shares the borders of land and sea with China, began to attract attention as the American-China commercial war accelerated. Due to its proximity to China and its 250 kilometers of coast, the province is considered one of the best locations for companies that move production outside China. These factors keep the existing supply chains of China at stake and facilitate the shipment of products.
In addition, the number of LNG and wind centrals in the province has recently increased. This reflects a great change of energy as Quang Ninh has rich mineral resources, including more than 90% of Vietnam coal reserves. Industries such as photovoltaic solar cell technology, electronic equipment and petrochemicals are also expanding in the province.
Jinko Solar PV Vietnam’s photovoltaic technology project could be the largest and most symbolic of these projects. With a total registered capital of more than 34.65 billion Dong ($ 1.5 billion), it is funded by a Chinese company.
The three main provinces in the FDI 2023 ranking were in all of Haiphong. One of the five largest cities in Vietnam, Haiphong, finished fourth in the ranking, attracting $ 1.48 billion.
The opening of the International Lach port flee in 2018 in Haiphong has resulted in the city and its surroundings. The first large -scale port on the north has a 14 -meter water depth. Before it opened, the region only had a shallow port that could hardly enter a large container ship.
Expressway 04, which connects to Hanoi, opened at the same time. In addition, the opening in 2022 of Expressway 06, to the city of Mong Cai, near the Chinese border, was an important tail wind for the province of Quang Ninh.
Another blessing for the city has been Vingroup, the largest conglomerate in Vietnam, which, according to reports, is close to the authorities and has received preferential treatment. He has built a Vinfast electric vehicle factory in Haiphong.
Until a few years ago, Vietnam’s investment centers were Hanoi and Ho Chi Minh City, the two largest cities. However, labor costs and prices of industrial parks in recent years have shot themselves.
According to Sufex Trading, a Japanese company that helps Japanese companies enter Vietnam, Hanoi Industrial Parks charges tenants from $ 100 to $ 170 per square meter, of the $ 90 to $ 120 that were charged in 2019. The prices in the city of Ho Chi Minh vary from $ 160 to $ 270, up to $ 130 to $ 160.
Meanwhile, rentals in the parks of the province of Quang Ninh vary from $ 80 to $ 100, compared to $ 60 to $ 70 before the pandemic.
Personnel costs are also lower outside the large metropolis. According to the General Office of Statistics of Vietnam, the average monthly salary in Hanoi in 2022 was 8.86 million Dong ($ 385). In the city of Ho Chi Minh it was 9.1 million Dong, but in the province of Quang Ninh, it was 7.03 million Dong.
“The area around Haiphong will continue to be popular among foreign companies,” said Hirokazu Tsuchiya, general manager of Japan of Deep C, a vast industrial park that covers Haiphong and Quang Ninh, where Pegatron and Apple’s supplier have their factories, that the prices of land and labor costs are raising in Haiphong. “The surrounding provinces like Quang Ninh and Thai Binh are cheaper, and convenience is almost as good as Haiphong,” he said.
According to Asia Nikkei report, the strategic importance of Quang Ninh is also evident in its railway development plans. Vietnam’s Ministry of Planning and Investment said a few days ago a few days ago that the work in two high -speed rail lines that link Hanoi with China will begin before 2030. Trains are expected to stop in Haiphong and Quang Ninh.