Overview of provinces and municipalities in Vietnam

Overview of Bac Ninh Province

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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 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
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323,700.

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 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.

If you need to apply for a Vietnam business visa, invest and conduct on-site
inspections of emerging markets such as Vietnam, the Philippines, Thailand,
and Indonesia, you need to conduct local inspections and obtain relevant
information such as government policies and market opportunities, or you
need assistance in registering a company locally and writing a feasibility
study. To report, find partners, build factories in Vietnam, rent offices, or hire
local employees, purchase Vietnamese raw materials, or export products to
Vietnam, etc., please contact Yuanzhe for consultation.

Tel: 021-6150-9726, 021-3326-9308

You can also follow the WeChat public account: Yuanzhe Consulting to get
more information.

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 1. Overview of Bac Ninh Province
1.1. Bac Ninh map

Source: Shutterstock

1.2. Strategic location

Bac Ninh Province (Bắc Ninh in Vietnamese) is located in the Red River Delta
region of Vietnam, bordering Bac Giang Province to the north, Hai Duong
Province to the east and southeast, and Hung Yen Province to the south. The
province covers an area of approximately 822.71 square kilometers.
According to the 2021 census data, the total population of Bac Ninh Province
is approximately 1.4629 million, and the population density is approximately
1,778 people/square kilometers.
Bac Ninh is a province in the Red River Delta region, located in the key
economic triangle of Hanoi – Hai Phong – Quang Ninh. The city is the
gateway to the northeast of Hanoi capital, adjacent to major economic centers
of the North. Bac Ninh is also close to China, which is the biggest exporter to
Vietnam, and the biggest importer of Vietnam’s goods and services.

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In terms of land transportation, the city has connections to National Highway
1A, Highway 18, National Highway 38, and the trans-Vietnam railway that
runs through Bac Ninh to Lang Son and China. By waterways, Bac Ninh is
connected to Cau river, Duong River and Thai Binh River, all of which can be
used to access all major river/sea port systems of the region. Furthermore,
Bac Ninh is located near Noi Bai International airport. which is convenient for
the circulation of goods and services.

With these geographical characteristics, Bac Ninh is heavily linked to the

development of the Northern economic region. Therefore, it is of no surprise
when the city is one of the key provinces to receive special investment
attention from Hanoi, as well as from Vietnam.

Source: Shutterstock

2. Overview of Bac Ninh economy

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As of Octorber 2023, Bac Ninh City, Tu Son City and Que Vo District, Tien Du
District, Yen Phong District, Thuan Thanh District, Gia Binh District, and
Luong Tai District in Bac Ninh falls under Region II in Vietnam's minimum
wage system, and the monthly minimum wage for workers is 4.16 million VND
(approximately US$178); the remaining districts are Region III categorized,
with a minimum wage of VND3.64 million (approximately US$156).

The number of FDI projects in different provinces in Vietnam in 2022

According to data released by the Bac Ninh Statistical Yearbook, The latest
available official GDP growth rate for Bac Ninh is 7.39% for 2022., and per
capita GDP reached US$6,300. In recent years, the industrial output value of
Bac Ninh Province has ranked among the best in Vietnam. In 2020, the total
industrial output value of Bac Ninh Province ranked first in the country. Among
them, the processing industry and manufacturing industry, which are the main
driving forces of economic growth, increased by 3%, and electricity production
and distribution increased by 8.2%. It attracted 1,628 foreign direct investment
projects with an agreed capital of US$19.9 billion, ranking sixth in the country
in foreign investment attractiveness.

Infrastructure

Natural resources: The province’s total natural land area is 822.7 km2, in
which agricultural land, forestry land, specialized and residential land and
unused land accounts for 54%, 0,7% and 14% respectively. The province’s
mineral reserve is limited (mainly construction materials such as clay in Que
Vo and Tien Du, sandstone in Thi Cau, Vu Ninh, Bac Ninh town and peat in
Yen Phong.

Travel resources: Bac Ninh is hometown of not only Kinh Duong Kinh – the

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very first king of ancient Viet ethic but also eight Kings of Ly Dynasty. Until
now, it preserves numerous cultural works and patterns such as Quan Ho folk
music, Dong Ho pictures and so on; many historical and cultural relics such as
Do Temple (where 8 Kings of Ly Dynasty are worshipped), Dau pagoda (the
first pagoda in Vietnamese history, But Thap pagoda (an ancient pagoda),
Phat Tich pagoda, Dam pagoda and local Literature Temple.

Industrial Zones:

 Well-Equipped Facilities: Bac Ninh hosts several well-equipped

industrial zones with dedicated infrastructure for industrial activities.
These zones provide reliable utilities like electricity, water, and
telecommunications, along with warehousing and waste management
facilities.
 Industrial areas:

According to the Bac Ninh Industrial Park Management Board, the province
currently has 15 industrial parks in operation, with a total area of more than
6,847 hectares, with an occupancy rate of 58.91%. These industrial parks are
concentrated in clean industrial fields with little environmental pollution, such
as: electronics and telecommunications, electronic component assembly,
motorbike assembly, precision mechanics, supporting industries, ...

Below is a list of industrial parks in Bac Ninh:

Yen Phong Industrial Park

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Que Vo Industrial Park

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Nam Son – Hap Linh Industrial Park

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Thuan Thanh Industrial Park

Gia Binh Industrial Park

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Tien Son Industrial Park

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Dai Dong – Hoan Son Industrial Park, Hoan Son

NVSIP Bac Ninh Industrial Park

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In addition, Bac Ninh province is implementing the construction of new
industrial parks, such as: Luong Tai 1 Industrial Park, Luong Tai 2 Industrial
Park, Luong Tai Industrial - Urban and Service Park, An Viet Industrial Park -
Que Vo 6.

These new industrial parks will contribute to promoting the socio-economic

development of Bac Ninh province, creating more jobs and income for people.

Power Supply: Bac Ninh has a stable and reliable power supply, crucial for
supporting the demands of its thriving industrial sector and ensuring business
continuity.

Telecommunications: The province benefits from a robust telecommunications

infrastructure with high-speed internet access and widespread mobile network
coverage, facilitating efficient communication and digital business operations.

Social Infrastructure: Bac Ninh invests in education, healthcare, and cultural

facilities, aiming to provide a high quality of life for residents and attract skilled
professionals.

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Investment situation

The structure of FDI flow into Bac Ninh throughout the years

(source: viettonkin consulting)

Currently, Bac Ninh has strong supporting industries, with enterprises forming
clusters and coalitions. As a result, many businesses in the area have
become level 1, 2, and 3 suppliers for FDI enterprises in the electronics
industry, and have managed to be a part of the global value chain. According
to statistics, the province has more than 400 supporting industry enterprises,
accounting for 10.1% of the enterprises in the processing and manufacturing
industry. By 2025, this figure is expected to double, at 800 enterprises. Among
them, 70% will apply production management systems that meet the
requirements of global manufacturing standards. This will increase the
capability of domestic enterprises to further participate in the global value
chain. With the supporting system already in place and rapidly developing,

future FDI enterprises coming into the province will benefit greatly.

Mr Nguyen Tu Quynh – former Chairman of Bac Ninh People’s Committee –

shares that to attract foreign investment, the city cannot just rely on favorable
natural factors. Instead, conscious efforts must be made to improve the

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province’s business environment. Specifically, the city has to give businesses
support through infrastructure inside and outside of industrial parks.

The province has organized many activities to connect investors with

universities, colleges, and vocational schools in the area. These activities
improve the ability for foreign enterprises to hire the best people, as well as
improving the employment rate in the province. Bac Ninh is widely deploying
the model of public administrative centers in its districts to encourage dialogue
between the community and enterprises. Bac Ninh has also established a
business support team to solve problems and provide feedback, which
improved the business environment. As a result, Bac Ninh is considered a
“magnet”, attracting many investment projects by domestic and foreign
corporations and enterprises.

Examples of provincial support can be seen through the comments by

Samsung’s representative. The group shares that from day one, Bac Ninh has
formed a support team just for Samsung. This team was able to quickly solve
difficulties relating to land clearance, construction of the manufacturing
plant…Samsung also adds that one of the most important factors behind its
decision to invest in Bac Ninh is the level of hospitality and support for foreign
enterprises there.

Large foreign enterprises invest in Bac Ninh

Name of the Number of
Category Main Business
company employees
Samsung Mobile phone Over 50,000
Electronics production peopler
Producing
Intel Products advanced Over 8,000
Electronics and
Vietnam microprocessors people
Manufacturing
and chipsets.
Producing printer
Over 5,000
Canon Vietnam models and
people
components
Producing
Textile and Shenzhou
apparel for
Garment International
renowned brands Over 20,000
(Vietnam) Co.,
like Adidas, Nike, people
Ltd.
and Uniqlo
Evergreen Specializing in Over 5,000
Vietnam Ltd. high-end people
sportswear and
outerwear for
brands like The
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 North Face and
Columbia
Producing
popular food and
beverage
Over 1,000
Nestlé Vietnam products like Milo
people
powder and
Maggi
Food and seasoning.
Beverage Manufacturing
and distributing
popular
Over 1,000
PepsiCo Vietnam beverage brands
people
like Pepsi,
Aquafina, and
Tropicana.

Source: People's Committee of Bac Ninh province

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