November 2022

S P OT L I G H T
Savills Research
Vinh Phuc Report

Photo source kinhtemoitruong.vn

Vinh Phuc Opportunities Abound Economic Appeal Outlook Green Park Vinh Phuc: A Case Study
 Vinh Phuc Report | November 2022 Vinh Phuc Report | November 2022

“ We have seen a significant

increase in demand for
ready-built facilities. Although
foreign rental developers have
capitalised on this in the NEZ,
Vinh Phuc remains untapped. It
presents development
opportunities given its distance
to Ha Noi, upcoming land supply,
lack of existing rental projects,
and burgeoning added-value and

VINH PHUC
supporting industries.

OPPORTUNITIES ABOUND John Campbell,

Associate Director,
Head of Industrial Services,

V iet Nam is now one of Asia’s most popular

manufacturing hubs, with stable growth, an
export-driven economy, free trade agreements (FTAs), a
Vinh Phuc is part of the North Economic Zone (NEZ). It
is proving an attractive and safe destination for
multinational companies (MNCs), thanks to its
Savills Viet Nam

young dynamic workforce, investment incentives, and a proximity to Ha Noi and Noi Bai International Airport,
strategic location. Its labour-intensive industries are flexible support mechanisms, and comprehensive
transforming, and foreign and high value-added investors investment, production, and business policies.
remain bullish on Viet Nam’s long-term growth.

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 Vinh Phuc Report | November 2022 Vinh Phuc Report | October 2022

Vinh Phuc had GDP growth of 10% YoY in

6M/2022, and its industrial production increased
by 15% YoY in 9M/2022.

Economic Appeal
The province receives healthy FDI inflows. To date, it has attracted 493 FDI projects with Demographics
investment capital of US$6.60 billion, making it the 16th largest FDI province in Viet Nam. In
9M/2022, total registered FDI reached US$102 million, and 16 of the 18 newly registered projects In 2021, the province’s population reached 1,191,780. The labour force of 578,400 is increasingly
were in manufacturing and processing and contributed over US$85 million. skilled, with the proportion of skilled workers over the age of 15 rising from 22.4% in 2018 to 34.7% in
2021. With proximity to Ha Noi, Vinh Phuc is also accessible to expats and foreign skilled workers.
The province has made great efforts to create a
business-friendly regulatory environment. Between 2020
and 2021, it improved its PCI standing from 29th to fifth. Figure 2: Vinh Phuc newly registered manufacturing FDI, 2018 - 2021

Figure 1: Vinh Phuc FDI, 2018 - 2021 800.00 60

702.00
700.00 52
800 25 50
744.03
47
700 600.00
21
20 526.00
581.08 40
600
540.71 500.00

US$ million

investors
500
15
US$ million

14 14 400.00 30
Rank

385.18 329.00
400
12
300.00 23
10 22
300 20
215.00
200.00
200
5
10
100 100.00

0 0
0.00 0
2018 2019 2020 2021
2018 2019 2020 2021
Total Registered FDI (US$ million) Province rank
Source MPI, 2022
Newly Registered Manufacturing FDI (US$) No. of Investors

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 Vinh Phuc Report | November 2022 Vinh Phuc Report | November 2022

Industrial Landscape
Spare parts for electronics are
Vinh Phuc’s leading export,
and it is one of the largest
hubs of automotive
Infrastructure
production hubs in the NEZ.
Vinh Phuc's infrastructure system facilitates Public buses cater to residents travelling
Industry is fundamental to trade, thanks to its transport links and throughout the province and connect to most
Vinh Phuc’s development. It is proximity to Ha Noi, Noi Bai International industrial parks.
calling for investment and Airport, and neighbouring provinces. The Red River (41 km) and the Lo River (34
implementing mechanisms It has a comprehensive road network that km) can move up to 500 tonnes of cargo a day
and policies that encourage connects to China, Ha Noi, Hai Phong, and key and are home to Vinh Thinh and Nhu Thuy
and attract investment, such industrial provinces. ports.
as administrative reform and
effective provincial industrial
development, CIT incentives Vinh Phuc Infrastructure
for supporting enterprises, and
funding supporting industries.

Table 1: Vinh Phuc industrial overview

OCCUPANCY 88%

AVG. LAND LEASE PRICE US$97/m2/entire term

VACANT LAND 138 ha

LEASABLE AREA 1,189 ha

OPERATING IPS 7

UPCOMING INDUSTRIAL PARKS (FROM 2023 ONWARDS) 13

Ha Noi CBD: 40 minutes

TIME TO KEY DESTINATIONS
Noi Bai International Airport: ~30 minutes

Computers, electronics & optical products,

LEADING SECTORS fabricated metal, rubber & plastics, motor vehicles,
non-metallic mineral products

Daewoo, Haesung Vina, Partron Vina, Cammsys

NOTABLE TENANTS
(Korea), Toyota, Honda, Sumitomo (Japan), Compal
(Taiwan), Piaggio (Italy), De Heus (Netherlands),
Prime Group (Thailand), and Northstar Polaris and
Weldex (the US).

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 Vinh Phuc Report | November 2022 Vinh Phuc Report | November 2022

NEZ RBF/RBW Supply Map

Vinh Phuc has a sizeable

“ Vinh Phuc has
established itself as a
worthy competitor amongst
the key provinces in the NEZ.

industrial land supply, Added-value industries and

but a noticeable lack of MNC tenants drive its
factories or warehouses VINH PHUC manufacturing and
for rent for smaller processing base, it is less
tenants that require less than 30 minutes from Noi Bai
than 10,000 m2. International Airport, and
There are opportunities land prices remain
for ready-built factory competitive. The local
(RBF) and warehouse authorities have done a
developers. fantastic job of improving
the technical infrastructure
and ease of doing business,
as referenced in its jump to
5th place in 2021’s PCI list.

Developer Opportunities
John Campbell,
Currently, companies establishing themselves in Vinh Phuc face capital-intensive processes that require commitments of up to 50 years. Conversely, ready-built supply will
Associate Director,
offer tenants speed to market, minimum capital expenditure, and flexible lease terms starting from only three (03) years. Head of Industrial Services,
With established electronics and automotive manufacturers in the area, ready-built properties will allow supporting industries and suppliers to relocate or diversify their Savills Viet Nam
manufacturing in Vinh Phuc. As supporting industries increase, demand for RBFs and RBWs will rise.

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 Vinh Phuc Report | November 2022 Vinh Phuc Report | November 2022

Vinh Phuc ICD Logistics Centre & Super Port

Ring Road 4

An artist’s impression of Ring Road 4 in Hanoi and adjacent areas. Photo

courtesy of the project planning unit. Photo source: theinvestor.vn

Ring Road 4 will connect 14 districts across Ha Noi,

Hung Yen, and Bac Ninh. It will run for 112 km,
comprising the 103.1 km ring road and 9.7 km
access road from the Noi Bai – Ha Long
Expressway. The estimated investment is US$3.81
billion.
It would address traffic congestion and enable
further economic links and trade between Ha Noi,
Hung Yen, Bac Ninh, Vinh Phuc, and Bac Giang.
Ring Roads 4 and 5 will mean expats working in
Vinh Phuc, Hung Yen, Bac Ninh, and Bac Giang will
be able to live in Ha Noi because the roads will cut
commutes significantly. Given the high-value
manufacturing in the area, the roads will support
the recruitment of skilled labour from Ha Noi to
work in Vinh Phuc.

The first "super port" within a smart logistics network in the ASEAN region is expected to start operations in Q4/2023. The 83-ha ICD logistics centre, DC, and super port
by T&T Group and YCH Group will receive investment of VND 3.8 trillion and will have a customs clearance capacity of 530,000 TEUs per year.

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 Vinh Phuc Report | November 2022 Vinh Phuc Report | November 2022

SAVILLS GREEN PARK VINH PHUC:

VIETNAM
Green Park Vinh Phuc
THE LEAD
AGENCY
A CASE STUDY infrastructure and utilities

Power supply Water supply

Capacity: 11x63 MVA + Phase 1: 9,800 m3/day
Substation: 110/22kV Phase 2: 22,000 m3/day

Waste treatment Telecommunications

5,000 m3/day Established networks,
high-speed internet

Road system Other

Wide internal roads, Green areas, firefighting
convenient for trucks systems, 24/7 security

Project Overview Table 2: Vinh Phuc industrial overview

LOCATION Binh Xuyen District, Vinh Phuc Province

Investment
Savills Viet Nam is the proud lead agent for this
outstanding green industrial development in Vinh Highlights
Phuc. The ‘smart’ IP by YSL Group caters to diverse PROPERTY Green Industrial Park
high value-added enterprises working in R&D, • Tech-driven infrastructure.
assembly, electronics, engineering, food processing, DEVELOPER YSL Group (South Korea)
consumer goods production, jewellery, automobile • Less than 30 minutes to Noi Bai International
components, household electrical appliances and Airport.
low-impact sectors. TOTAL AREA (HA) 290
• Amenities maximise usable areas.
LEASABLE AREA (HA) 180
It has direct access to National • Green & smart technology reduces waste &
supports the environment.
Highway 2A. The project is only LEGAL STATUS Under clearance
• Manufacturing corporate income tax (CIT)
40 minutes from the Ha Noi CBD incentives.
OPERATION DATE Q1/2023
and 15 minutes from Noi Bai • “One-stop” services to help tenants with market
International Airport. LAND LEASE TERM 2071 entry and operations.

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Vinh Phuc Report | November 2022 Vinh Phuc Report | November 2022

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 Troy Griffiths John Campbell
Deputy Managing Director Associate Director,
Head of Industrial Services

+84 (0) 933 276 663 +84 986 718 337

TGriffiths@Savills.com.vn JCampbell@Savills.com.vn

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