Quang Ninh

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. Quang Ninh Province Overview

1.1. Quang Ninh Location, Population and Minimum Wage

Quang Ninh Province map (Source: Quang Ninh Express)

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Quảng Ninh is a province along the northeastern coast of Vietnam, with the strategic
location in economy, polytics, military, and foreign affair. It is about 153 km (95 mi)
east of Hanoi, comprising four cities, two district-level towns and seven rural districts.
The provincial capital is Hạ Long. The province covers an area of 6178.21 square
kilometres and, nearly 80% of the province is mountainous with abundant land, forest,
water and mineral resources, with 90% of Vietnam's coal output extracted from the
province. The province is also home to Hạ Long Bay, a World Heritage Site that has
1,969 islands, out of which 989 have been given names.
Population

As of 16/03/2023, according to Quang Ninh Province Portal, Quang Ninh had a

population of 1,413,452. Quảng Ninh has a Human Development Index of 0.769 (high),
ranking sixth among all municipalities and provinces of Vietnam.

Minimum wage

Based on the Vietnamese Labor Code, Ha Long City belongs to region I and will have a
minimum wage of 4.680.000 VND; Cam Pha city, Uong Bi city, Mong Cai city Quang
Yen district, Dong Trieu District belong to region II and will have minimum wage of
4.160.000 VND; Van Don district, Hai Ha district, Dam Ha district, Tien Yen district
belongs to region III area and will have minimum wage of 3.640.000 VND; the rest of
the districts will have the minimum wage of 3.250.000 VND

1.2. Quang Ninh Economic Overview

According to the Party Executive Committee of Quảng Ninh Province, its gross regional
domestic product (GRDP) is expected to reach 11.02 per cent in 2023, 0.74 percentage
points higher than the previous year. The locality's economic scale is estimated at over
VNĐ312 trillion (US$13 billion).

Total state budget revenue hit an estimated VNĐ55.6 trillion by the year-end, up 3 per
cent year-on-year. Of which, domestic revenue is estimated at VNĐ39.6 trillion, surging
7 per cent over the previous year while revenue from import and export activities will
likely top VNĐ16 trillion.

At the same time, administrative reform and improvement of the business investment
environment continue to be promoted by the province. Quảng Ninh is known as a
locality with an open and favourable investment environment, wholeheartedly dedicated
to businesses and investors.

Quang Ninh is the province with particular important and favourable geographical
location for economic development: Quang Ninh has a long international borderline

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with the People’s Republic of China (PRC), international border gate of Mong Cai and
two national gates of Hoanh Mo (Binh Lieu) and Bac Phong Sinh (Hai Ha).

Infrastructure

Natural resources: Quang Ninh has plenty of land resources with the total area of
601,000 ha including 50,365 ha off agricultural land, 146,019 ha of forestry land. The
province is rich in mineral, especially coal with reserves of 3.5 billion tons (the
exploitation quantity of 30-40 million ton/year); besides it also has raw materials such
as limestone, clay, etc. in various places such as limestone in Hoanh Bo district, clay in
Gieng Day, Kaolin in Tan Mai, Mong Cai, glass in Van Hai, etc.

Image: Quanh Ninh Coal Mine (Source: Vietnamnews)

Travel resources: Quang Ninh has the most valuable tourism potential in Vietnam with
many beautiful beaches, Bai Tu Long and other islands, especially, Ha Long Bay has
been recognized as one of World’s natural heritages for 2 times. Moreover, Ha Long
Bay attracts tourists by hundreds of historical and cultural monuments located along the
sea.

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Image: Ha Long Bay in Quang Ninh, Vietnam (Source: Paradise Vietnam)

Traffic: The province has quite systematic transportation network (roadway: Nationcal
highways No. 18A, 10, 4B, etc.; railway, seaway, seaports, especially its national and
international border gates with China). Over the past years, several new routes have
been newly built or upgraded such as Chi Ling – Ha Long route, Ha Long – Mong
Duong route, etc. Besides several bridges have been newly built like Bai Chay bridge,
Hoanh Bo bridge, etc.

Image: Hanoi and Mong Cai (Quang Ninh) route (Source: VnExpress)
1.3. Quang Ninh Labor Market

Quang Ninh has an abundant workforce with young labor structure and high labor
productivity. The quality of labor in recent years has also gradually improved; the
trained labor has partly met the requirements of the business and the labor market. The
labor demand is expected to rise significantly as more industrial parks are likely to be
inaugurated in the next few years; in particular, the demand for unskilled labor is likely
to rise further. Labor cost in Quang Ninh is considered to be lower compared to its peer
regions, such as Bac Ninh – Bac Giang or Binh Duong – Dong Nai

1.3.1. Labor Supply

Quang Ninh is a province along the northeastern coast of Vietnam, with nearly 80% of
the area is mountainous with abundant land, forest water and mineral resources.

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Roughly 90% of coal output in the country is extracted in this province. Being in the
northern economic triangle (Ha Noi – Hai Phong – Quang Ninh), the province
has abundant resources and has immense potential to develop the economy in tourism,
agriculture, and industry sectors.

Quang Ninh has an abundance of well-trained labor force from the local community.
Percentage of trained labor at 15 years of age and above in Quang Ninh is 38%, which
is a high percentage among other provinces in Vietnam.

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1.3.2. Labor Demand

Labor demand in manufacturing sector in Quang Ninh is growing over the years. In
2020, percentage of annual employed population in this sector accounted for 22.8% of
total labor demand. Going forwards, this demand is forecasted to rise faster and account
for an increasingly larger share.

2. Quang Ninh Province Economy

2.1. Key economic sectors of Quang Ninh Province
No. Sector Description Significance
1. Tourism Ha Long Bay, Cat Ba Island, Major revenue and
Van Don Special Economic employment generator,
Zone, historical sites attracts international
visitors
2. Port Operations Cai Lan and Van Don ports, Regional trade hub,
handle diverse cargo contributes to economic
growth and employment
3. Mining Vietnam's leading coal Energy sector, contributes
producer, vast reserves to economic growth
4. Shipbuilding and Ha Long Shipyard, Van Don Shipbuilding expertise,
Maritime Special Economic Zone regional maritime hub
Industries

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5. Emerging Renewable energy, high-tech Future economic growth,

Industries manufacturing, creative diversification
industries
6. Other Notable Agriculture, aquaculture, Diverse economy, support
Sectors construction, real estate, local livelihoods and
financial services, retail infrastructure
2.1.1. Outstanding FDI companies and local Vietnamese companies in Quang
Ninh
 FDI companies
No Company Major business Picture
Name
1. Amata Operates the Amata City
Joint Stock Halong Industrial Park, a
Company major industrial hub
strategically located near
the city of Ha Long.

Address: Song Khoai Industrial Park,

Song Khoai Commune, Quang Yen
Town, Quang Ninh Province, Vietnam
Web: https://www.amata.com/contact
2. Yaskawa Production of industrial
Electric robots
Corporation

Address: Bac Tien Phong Industrial

Park, Quang Yen Commune, Bac Ninh
Province, Vietnam.
Web: https://yaskawavn.com/
3. Tenma Providing plastic
Corporation materials to various
industries like
electronics, automobiles,
and construction.

Address: Song Khoai Industrial Park,

Song Khoai commune, Quang Yen
District, Quang Ninh Province,
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Vietnam.
Web: https://www.tenmacorp.co.jp/en/

 Local Vietnamese Companies

No Company Major business Picture
Name
1. Cai Lan Producing high quality
Vegetable cooking oil products.
Oil
Company
Limited
(CALOFIC)
Address: Cai Lan Industrial Park, Bai
Chay Ward, City. Ha Long, Quang
Ninh Province
Web: http://www.calofic.com.vn/
2. AES TKV Producing electricity,
Mong contributing to the
Duong national electricity
Electricity network.
Company
Limited

Address: Area 8, Mong Duong Ward,

Cam Pha City, Quang Ninh Province
Web: https://aesmongduong.vn/?
lang=vi
3. BIM Group Creating leading, world-
class products in the
fields of investment -
tourism infrastructure
development and real
estate investment;
renewable energy;
agriculture, food,
commercial services. Address: 1st Floor Green Bay Building
- Hoang Quoc Viet Street - Hung
Thang Ward - Ha Long City - Quang
Ninh Province
Web: http://bimhalong.com/

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2.1.2. Outstanding Industrial Parks in Quang Ninh

Name Land size Major Business Image

Cai Lan 700 ha Electronics and
Indistrial Park component,
shipbuilding and
maritime
industries, food
processing and
beverages, textile
and garments...

AMATA 714 ha Electronics and

Song Khoai supporting
Industrial industries,
Park Textiles and
garments,
Footwear, Food
processing.

Bac Tien 1192,9 ha Petrochemicals,

Phong Logistics and
Industrial ports, General
Park (DEEP C industries
II) (electronics,
garments, etc.)

Viet Hung 300,93 ha Electronics and

Industrial components,
park Garment
manufacturing,
Food processing
and beverages.

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Hai Yen 182,4 ha Electronics and

Industrial components,
Park Garments and
textiles, Building
materials, Food
processing and
beverages

Nam Tien 487,4 ha Petrochemicals

Phong and liquid
products, Logistics
Industrial
and ports, General
Park (DEEP C industries
I) (electronics,
garments, etc.)

Texthong Hai 660 ha Dedicated to the

Ha Industrial textile and
Park garment industry,
specifically yarn
production and
related
supporting
facilities.

2.2. Foreign direct investment in Quang Ninh

2.2.1. FDI Figures and performance
According to Quang Ninh News, Quảng Ninh Province is reported to attract over US$3
billion in foreign direct investment (FDI), temporarily securing its position as the
leading province nationwide in attracting FDI.

In a recent update, Hoàng Trung Kiên, Head of the Quảng Ninh Economic Zone
Authority, revealed that the total FDI capital inflow into industrial zones and economic
zones in the province reached more than US$3.1 billion in the last 10 months, exceeding
the target set by the provincial People's Committee by an impressive 158.6 per cent.

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During this period, Quảng Ninh issued new investment registration certificates for 24
projects and adjusted the capital for one project.

Notably, in October 2023, the province granted an investment registration certificate to

the Jinko Solar Hai Ha photovoltaic cell project with a registered capital of VNĐ34.7
trillion (equivalent to $1.5 billion). This milestone not only signifies the province's
success in surpassing the $3 billion FDI threshold, but also positions Quảng Ninh at the
forefront of FDI attraction nationwide, outpacing major cities such as Ha Noi, Hai
Phong and HCM City.

To become a "safe, reliable and attractive" destination for investors globally and within
the region, the province has been actively streamlining procedures in investment, land,
construction, tax and customs. It has promptly proposed amendments and abolitions of
legal regulations and procedures that present obstacles, ensuring timely resolution of
difficulties and providing support to investors.

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Investment promotion activities are also given significant attention by the province,
with a focus on implementing innovative approaches both in content and methods,
yielding noteworthy results. Of particular significance is the robust digitization of
investment promotion activities, enhancing the province's investment promotion
materials and data to showcase to investors the potential, strengths, and developmental
directions of the province swiftly and accurately. Simultaneously, there is a proactive
and positive engagement in promoting investments with delegations of foreign investors
visiting the province for research, exploration of investment opportunities, and
expansion of investment scope within the province.
2.2.2. Opportunities and Challenges for FDI companies

No Sector Opportunities Challenges

1. Tourism Develop sustainable tourism
initiatives; diversify beyond Ha
Long Bay; invest in eco-
tourism, cultural tourism, and
adventure tourism; partner with
local communities; leverage
technology for booking and
experiences.
2. Port Expand infrastructure and
Operations capacity; invest in automation
and technology; develop
logistics and warehousing
facilities; offer specialized
services like cold chain storage
or container repair.
3. Mining Diversify beyond coal by
exploring other mineral
resources; invest in responsible
mining practices and
environmental remediation;
develop value-added processing
and downstream industries.
4. Shipbuilding Focus on high-tech and
and Maritime specialized vessels; cater to
Industries emerging sectors like offshore
wind; expand repair and
maintenance services; develop
skilled workforce.
Seasonality; skill mismatch;
environmental concerns;
competition from other
destinations.
Competition from other
ports; dependence on specific
trade routes; fluctuations in
global shipping volumes.
Environmental impact;
concerns about
sustainability; potential
resource depletion;
regulations and licensing
restrictions.
Dependence on traditional
markets; competition from
other shipbuilding centers;
fluctuations in maritime
industry demand.

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5. Emerging Invest in renewable energy Attracting investments and

Industries generation and storage; develop
electric vehicle manufacturing
and charging infrastructure;
leverage AI and robotics in
various sectors; promote
innovation and knowledge
transfer.
6. Other Notable Modernize agriculture and
Sectors aquaculture; expand food
processing and packaging;
invest in construction materials
and real estate with sustainable
practices; leverage digital
technologies in retail and
financial services.
skilled labor; overcoming
initial infrastructure needs;
navigating regulations and
policies.
Competition from
established players; skill
gaps in specific areas;
regulations and land
availability.

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