HUNG YEN

Overview of Vietnam’s provinces and municipalities

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As more and more people pay attention to the Vietnamese market, Yuanzhe Consulting
has also received a large number of inquiries related to the Vietnamese market. These
questions involve many fields, such as:

-Are there big differences in salary levels in different regions in Vietnam?

-How do foreigners set up a company in Vietnam?

-What kind of preferential policies do foreign-invested enterprises enjoy in Vietnam?

-How do foreign-funded enterprises rent offices in Vietnam and hire Vietnamese

employees?

-Is it better for textile and clothing manufacturers to set up factories in southern
Vietnam or northern Vietnam?

-How to sell the auto parts you produce to Vietnam?

-How to purchase natural rubber from Vietnam?

-How will Vietnam’s cement market demand grow in the next few years?

-What is the price of industrial electricity in Vietnam?

-Has the impact of COVID-19 on Vietnam been eliminated?

- Various other issues.

Yuanzhe Consulting will answer the questions of high concern related to Vietnam one
by one. We will launch a series of topics related to Vietnam’s macroeconomics,
investment policies, industry research, and regional economic research to help everyone
better understand the Vietnamese market.

We will introduce you to basic information about various regions in Vietnam to help
you better understand the Vietnamese market and discover your own investment
opportunities.

Administratively, Vietnam is divided into 58 provinces and five municipalities directly

under the central government (Can Tho, Da Nang, Haiphong, Hanoi, and Ho Chi Minh
City). Provinces and cities vary in size. The largest province in Vietnam is Nghe An
Province, with an area of about 6,368 square kilometers. The smallest province is Bac

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Ninh Province, with only 822.71 square kilometers; the most populous province is Ho
Chi Minh City. Data shows that in 2021 Ho Chi Minh City has a population of 9.166
million, and the province with the smallest population is Bei Kan Province, with only
323,700.

Administrative map of Vietnam by region

At the same time, Vietnam usually groups the country's many provinces into eight major
regions: Northwest, Northeast, Red River Delta, North-Central, South-Central, Central
Plains, Southeast and Mekong Delta. These eight regions are not official administrative
divisions of Vietnam, but are only divided according to geographical location.

According to Yuanzhe Consulting's analysis, regions such as Ho Chi Minh City and
Hanoi City in Vietnam have relatively developed economies, large populations, and
high per capita monthly wages. The overall economic level of these cities is relatively

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developed and suitable for the development of industries with higher added value, such
as finance and service industries.

Yuanzhe Consulting will bring you an overview of the five municipalities and some
important provinces in Vietnam.

Specifically, enterprises related to finance, commerce, import and export trade,

technological innovation, Internet and telecommunications industries can obtain more
development opportunities in these areas; at the same time, there are many provinces
and cities in Vietnam with large populations and low per capita wages, which are The
three or four categories of areas with minimum wages in Vietnam, such as Thanh Hoa,
Nghe An, Dak Lak, and Thai Binh provinces, are labor-intensive and cheap, and are
more suitable for the development of processing manufacturing, planting, and breeding
industries with low added value.

Relatively speaking, Vietnam's five municipalities, namely Ho Chi Minh City, Hanoi,
Da Nang, Haiphong and Can Tho, play a more important role in Vietnam's economy.
We will introduce these regions one by one.

1. Hung Yen Province Overview

1.1. Hung Yen Location, Population and Minimum Wage

Hung Yen Province map (Source:

Shutterstock)

Hung Yen is a province of the Red river

delta. It is located in the northern key
economic zone and the economic triangle
of Hanoi-Hai Phong-Quang Ninh. As the
eastern gateway of Hanoi, there are
National Highways 5A, 5Bconnecting to
expressway 5B to Phap Van - Ninh Binh
expressway and Hanoi - Hai Phong
railway. There are also National Highways
39A, 38 connected from National Highway
5A through Hung Yen city to National
Highway 1A. Moreover, Hung Yen is also
near seaports of Hai Phong, Cai Lan and Noi Bai international airport.

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The province’s administrative unit includes Hung Yen City and 9 districts (My Hao,
Yen My, Van Lam, Khoai Chau, Van Giang, Kim Dong, An Thi, Tien Lu and Phu Cu),
with a total area of 923 km2
Population

As of 2022, according to Vietnam Investment Promotion Portal and a population of

1.302.000 people.

Minimum wage

Based on the Vietnamese Labor Code, Hung Yen city, My Hao town and Van Lam, Van
Giang, Yen My districts of Hung Yen province: 4,160,000 VND/month or 20,000
VND/hour. The remaining districts in Hung Yen province include An Thi, Tien Lu, Phu
Cu, Kim Dong, Khoai Chau districts: 3,640,000 VND/month or 17,500 VND/hour.

1.2. Hung Yen Economic Overview

According to People’s Newspaper, in 2022, Hung Yen’s economic growth reached

12.84% and the economic scale reached 131.46 trillion VND. The total product per
capita was 102 million VND per person per year. The economic structure has shifted in
a positive direction, the industrial and construction sectors increased to 63.7%, while the
agricultural industry decreased to 7.55%.

Hung Yen Province has a system of important road traffic routes including National
Highways 5A, 39A, 38 and 38B, Provincial Roads 200, 207, 208 and 199, especially the
Hanoi - Hai Phong Expressway, the road connecting the Hanoi - Hai Phong Expressway
with the Cau Gie – Ninh Binh Expressway and many traffic routes being implemented.
In addition, the province also has the Hanoi - Hai Duong - Hai Phong railway, which
connects Hung Yen with northern provinces such as Hanoi, Hai Phong and Quang Ninh.
Hung Yen Province has both the Red River and Luoc River passing through and is
located near seaports such as Hai Phong and Quang Ninh, and Noi Bai International
Airport, creating a convenient transportation network for goods exchange and travel
between Hung Yen and other economic centres, large urban areas and neighbouring
localities.

To promote the potential and advantages towards creating a breakthrough development,

in recent years, Hung Yen Province has always paid attention to planning and

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investment into building infrastructure for industrial zones and clusters and attracting
investment. From 2021 to June 2023, the Prime Minister approved Hung Yen
Province’s direction of investment in six more industrial parks and the addition of two
industrial parks, to the Planning of Vietnam’s industrial parks, bringing the total number
of industrial parks in the province to 17, with an area of more than 4,395 hectares.
Among them, six industrial parks have been put into operation and are ready to receive
investment projects; three industrial parks have been constructed, including the
expanded Thang Long II Industrial Park, Industrial Park No. 5, Sach (Clean) Industrial
Park; and eight industrial parks being implemented.

Hung Yen Province has decided to establish 26 industrial clusters, with a total area of
1,256 hectares and total registered investment capital of 12.409 trillion VND; has
started construction of 3 industrial clusters and is focusing on site clearance for 8
industrial clusters; and is implementing infrastructure investment procedures for other
industrial clusters.
Infrastructure

Natural resources: The main mineral of Hung Yen is black sand resource with high
reserves along Red river and Luoc river, which may be exploied to meet the
construction demand in the province. Besides, Hung Yen also has a brown coal mine in
Khoai Chau belonging to brown coal basin of Red River Delta. This coal mine is
estimated to have high reserves (over 30 billion tons). Other minerals are almost
negligible.

Image: Sand mining in Hung Yen (Source: Dan tri newspaper)

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Travel resources: Hung Yen is concentrated with many historical and cultural relics
including 105 national relics and many valuable ancient artifacts. Especially, the relics
of Pho Hien, Da Hoa-Da Trach, Tran dynasty’s relics... as the resources of cultural
tourism are very valuable for the development of tourism.

Image: the relics of Pho Hien in Hung Yen, Vietnam (Source: Paradise Vietnam)

Traffic:
 There are 3 national highways across the provice, namely national highway 38,
38B, and 39. The national nighway 38 and 38B are under the management of
Regional Road Management Unit I, while Hung Yen Department of Transport is
authorized to manage highway 39.
 Province-level and district-level roads: there are 13 routes across the province,
with a total length of 312.1 km. Among these, 12 routes are numbered from
DT.387; 1 route is numbered DT.377B.
 Railway system: There is 01 railway, which is Gia Lam – Hai Phong railway,
running across the province.
1.3. Hung Yen Labor Market

The recruitment demand increased significantly since early 2022 as businesses resumed
their operations. The demand for unskilled laborers rose by over 20%, while the demand
of highly qualified and skilled employees also increased compared to 2021.

The provincial Department of Labor, Invalids and Social Affairs has directed its
specialized units to survey the labor demand of enterprises, thus rolling out measures to

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stabilize the labor market and meet local businesses’ need of workers for production and
business activities.

The provincial employment service center has undertaken solutions to connect the labor
supply - demand, promptly meeting enterprises’ labor recruitment demand as well as the
need of employees to find jobs.

Since the beginning of the year, as many as 23 job fairs were organized by the center,
including eight online ones. The center has posted recruitment information on its
website, Fan page, and Facebook, attracting nearly 260,000 visits.

It has provided job counseling for nearly 17,000 people and vocational training
consultation for nearly 1,000 laborers; and introduced jobs to 4,500 people.

In the first six months of 2022, over 22,000 people in Hung Yen received vocational
training, equivalent to 44% of the target set for the year, up 10% year-on-year. The rate
of laborers having jobs after training reached over 92%.

The number of laborer getting jobs was 9,750 people in the period, including 560 sent to
work abroad, equivalent to 39.8% of the plan in 2022, and 112% of the figure in the
same period last year.
2. Hung Yen Province Economy
2.1. Key economic sectors of Hung Yen Province
No. Sector Description Strength
1. Manufacturing Flagship industry with major Competitive costs,
companies in electronics, developed infrastructure,
textiles & garments. supportive policies.
2. Agriculture Traditional pillar sector with Fertile land, modernization
rice farming dominance. efforts, diversification
beyond rice.
3. Services Emerging sector with tourism, Strategic location, growing
logistics, and other activities population & businesses,
expanding. potential for tourism
development.
4. Trade Gateway location with export Proximity to major
focus on electronics, textiles, markets, infrastructure
and agricultural products. upgrades, supportive
government policies.
2.1.1. Outstanding FDI companies and local Vietnamese companies in Quang
Ninh

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 FDI companies
No Company Major business Picture
Name
1. Samsung Producing mobile phones
Electronics and components.

Address: Thang Long II Industrial

Park, Van Lam Commune, Hung Yen
Province, Vietnam
Web:
2. Panasonic Production of electronic,
Việt Nam refrigeration and
household appliances

Address: Thang Long II Industrial

Park, Van Lam Commune, Hung Yen
Province, Vietnam
Web:
3. Texhong Specializing in yarn and Address: Song Khoai Industrial Park,
Group garment production Song Khoai commune, Quang Yen
District, Quang Ninh Province,
Vietnam.

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Web:

 Local Vietnamese Companies

No Company Major business Picture

Name
1. Nhat Quang Producing high
Steel Comapny quality steel pipes
and industrial steel,
used in the fields of
mechanical
engineering,
construction,
agriculture,
automobile and
motorbike industry... Address: Pho Noi A Industrial Park,
Lac Dao, Van Lam, Hung Yen
Web: nhatquangsteel.com.vn
2. Hung Yen Producing and
Garment exporting many types
Corporation of high quality
clothing such as
Shirts, Jackets,
Casual Pants,
Women's Jackets,
Skirts, Swimwear...

Address: 8 Bach Dang, Minh Khai

District, Hung Yen Province.
Web: hugaco.vn

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3. ABC Vietnam Production and

Joint Stock marketing of animal
Company feed and raw
materials for animal
feed production.

Address: Kha Duy Village, Doan Dao

Commune, Phu Cu District, Hung Yen
Province.
Web: abcvietnam.com.vn/

2.1.2. Outstanding Industrial Parks in Hung Yen

Name Land size Major Business Image

Thang Long 525,7 ha Electronics &
II Industrial components,
Park garments &
textiles, plastics
& rubber, food
processing,
machinery &
equipment

Pho Noi 121,81 ha Textiles &

Textile garments,
Garment footwear
Industrial
Park

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Yen My 280 ha Electronics,

Industrial mechanics,
Zone chemicals

Minh Duc 198 ha Electronics &

Industrial components,
Park food processing,
furniture &
wood products

Pho Noi A 688,94 ha Electronics,

Industrial refrigeration,
Park mechanical
engineering,
food production,
production of
products from
paper, wood,
plastic, rubber,
plastic, leather

2.2. Foreign direct investment in Quang Ninh

2.2.1. FDI Figures and performance

Regarding foreign investment attraction, according to Vietnam's Ministry of Foreign

Affairs, by 2023, Hung Yen will have 2,182 investment projects with a total registered
capital of more than 20 billion USD equivalent, including 536 FDI projects with
registered capital. signed 6.76 billion USD.

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Among them, investors from Japan ranked first in the number of projects with 173
projects and a total registered capital of more than 4 billion USD. There are currently
about 170 Japanese FDI projects in operation, with a total investment capital of over 3.2
billion USD, thereby creating jobs for about 45,000 workers, contributing to the state
budget this year alone. 2022 is about 1,407 billion VND.

Hung Yen province said it values and calls for investors from Japan, especially large
corporations, to research and cooperate in investing in areas of strength. Specifically,
localities have outstanding competitive advantages and need to develop such as
processing and manufacturing industries; clean energy, renewable energy; develop
digital government, digital economy and digital society; infrastructure, smart urban
areas; develop modern agriculture; industrial area; developing logistics infrastructure;
finance, banking.

Thang Long Industrial Park is one of the model industrial parks and an important
highlight in the strategy to attract domestic and foreign investors to Hung Yen. To date,
this Industrial Park has received over 100 foreign-invested projects, with a total
registered investment capital of more than 3 billion USD, mainly Japanese investors;
including some large economic corporations such as: Kyocera, Hoya, Nippon, Daikin,
Toto, Panasonic.

Hung Yen province currently has 17 industrial parks in operation with an area of more
than 4,400 hectares.

According to the Foreign Investment Department (Ministry of Planning and

Investment), in the first 9 months of 2023, Hung Yen province ranked 10th in the
country in attracting FDI with nearly 700 million USD, up 34% over the same period
and nearly equal to attracting FDI. FDI for the whole year 2022 (747 million USD).

2.2.2. Opportunities for FDI companies

No Sector Opportunities

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1. Strategic Location Proximity to major transportation hubs like Hanoi

and Hai Phong offers access to markets, resources,
and supply chains.

2. Cost-Competitive Lower labor costs compared to major cities

Labor provide attractive production possibilities.

3. Developed Industrial parks boast well-equipped

Infrastructure infrastructure, including roads, water supply,
electricity, and telecommunications.

4. Supportive Tax incentives, streamlined regulations, and

Government Policies government assistance attract investments.

5. Diversifying Industrial Focus on attracting high-tech and value-added

Landscape industries beyond assembly, including machinery,
pharmaceuticals, and food processing.

6. Strong Domestic Expanding domestic demand for consumer goods

Market and industrial products presents growth potential.

2.2.3. Challenges for FDI companies

No Sector Opportunities
1. Competition for Talent Skilled labor shortage in specific sectors and
competition with neighboring provinces for talent
pool.
2. Infrastructure Gaps While developed, certain areas require further
infrastructure upgrades like energy grids and
wastewater treatment.

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3. Bureaucratic Hurdles Navigating administrative procedures and

regulations can be complex and time-consuming.

4. Environmental Balancing industrial growth with environmental

Considerations protection and sustainable practices is crucial.

5. Labor Disputes Potential for labor disputes due to rising cost of

living and changing worker expectations.

6. Dependence on Single Overreliance on specific sectors like electronics or

Industries textiles can expose companies to market
fluctuations.

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