Vietnam Targets Bac Ninh and Quang Ninh for Central Governance to Boost Investment

Vietnam is planning to elevate two of its major foreign direct investment (FDI) destinations, Bac Ninh and Quang Ninh, to centrally governed city status. This initiative, announced by the government, aims to stimulate industrial growth and attract further investment, particularly in technology and manufacturing sectors.

Bac Ninh province, home to a significant Samsung manufacturing hub, has been a model for attracting foreign investment since the establishment of the Samsung Electronics Vietnam (SEV) factory in 2008. Over the past 14 years, Samsung has invested over $22 billion in Vietnam, with more than $9.3 billion allocated to Bac Ninh alone. The province's gross regional domestic product (GRDP) has surged from approximately $66 million in 2005 to over $10 billion in 2021, making it one of the top contributors to Vietnam's industrial output, particularly in electronics, which accounted for 79.3% of its industrial production in 2021, according to the provincial government.

Quang Ninh, known for its tourist attraction Ha Long Bay, is also set to benefit from this transition. The provincial government has been working to diversify its economy beyond tourism, focusing on industrial development and infrastructure improvement. The elevation to centrally governed city status is expected to enhance its administrative capabilities, allowing for more efficient governance and investment facilitation.

“The success of Samsung in Bac Ninh has been supported by the provincial leadership’s commitment to assist investors in overcoming challenges.”Choi Joo Ho, General Director of Samsung Vietnam

Choi Joo Ho, General Director of Samsung Vietnam, noted that the success of Samsung in Bac Ninh has been supported by the provincial leadership’s commitment to assist investors in overcoming challenges. This collaborative approach has been crucial, especially during the COVID-19 pandemic, allowing the company to maintain operations and continue its investment plans.

As Vietnam continues to attract high-quality investments, the shift towards establishing Bac Ninh and Quang Ninh as centrally governed cities is expected to create new growth poles in the economy. Analysts suggest that this could also enhance Vietnam's competitiveness in the regional market, particularly as it seeks to position itself as a manufacturing hub in Southeast Asia.

This initiative aligns with Vietnam's broader strategy to improve its investment environment, as noted in recent reports highlighting the country's focus on quality investments over sheer volume. The government has been actively promoting sectors such as technology and high-value manufacturing, aiming to create a more sustainable economic model.