Overview of Vietnam’s provinces and municipalities

Overview of Dong Nai 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?

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
323,700 people.

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 1. Overview of Dong Nai Province
1.1. Dong Nai Province location and population

Dong Nai Province (Đồng Nai in Vietnamese) is a province in southeastern

Vietnam, bordering Binh Phuoc and Lam Dong Provinces to the north, Ba Ria-
Vung Tau Province to the south, Binh Thuan Province to the east, and Binh
Duong Province and Ho Chi Minh City to the west.

Population

Dong Nai Province covers an area of approximately 5,863.62 square

kilometers. According to the 2022 census data, the total population of Dong
Nai Province is approximately 3.255 million, with a population density of
approximately 555 people/square kilometers.

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 Chart: Vietnam Population Density: SE: Dong Nai from 2011 to 2022

Image: Tan Cang - Nhon Trach ICD Port in Dong Nai Province

1.2. Economy overview

In 2022, Bien Hoa City, Long Khanh City, Nhon Trach District, Long Thanh
District, Vinh Cuu District, and Trang Bom District, which belong to Dong Nai
Province, are in Region I in Vietnam. The monthly minimum wage for workers
is VND 4.68 million (About US$200); Dinh Quy, Xuan Loc, and Thong Nhat
districts in Dong Nai Province are Region II areas, and the monthly minimum
wage for workers is VND 4.16 million (about US$178); the rest of Dong Nai
Province, each district is a Region III area, and the minimum wage is VND
3.64 million (approximately US$156). According to the official statistical
yearbook for Dong Nai in 2022 provides preliminary data showing a 5.03%
increase in GRDP, and per capita GDP reached VND 140 million. According

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to Yuan Zhe Consulting’s analysis, Long Thanh International Airport is under
construction in Dong Nai Province.

Image: Long Thanh International Airport in Dong Nai Province

The Ministry of Transport of Vietnam has required investors in the four sub-
projects of the Long Thanh International Airport construction project to
complete relevant engineering construction and equipment installation work
before March 31, 2025, and carry out trial operation and acceptance work in
the second quarter of 2025 to ensure that the in the fourth quarter, the first
phase of the Long Thanh International Airport project was officially put into
operation.

1.3. Labor market

In 2022, the province's labor force aged 15 years and over reached 1,777.02
thousand persons, an increase of 1.14% compared to that in 2021, of which
male employees accounted for 53.97%; female employees represented for
46.03%; the labor force in urban areas and rural areas accounted for 43.81%
and 56.19%, respectively.

Employed population aged 15 years and over working in all types of economic
ownership in 2022 reached 1,746.5 thousand persons, an increase of 1.56%
compared to that in 2021. Of which: Labor in the state economic sector was
92.57 thousand persons, accounting for 5.3% of the total number of employed
population in the province; the non-state sector was 972.19 thousand
persons, making up 55.67%; the foreign direct investment (FDI) sector 681.74
thousand persons, representing 39.03%.
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In 2022, the percentage of employed aged 15 years and over completed any
professional and technical training degrees and certificates reached 22.3%,
an increase of 0.4% compared to that in 2021. Of which, the trained
employees of the urban areas and the rural area reached 30.4% and 15.9%,
respectively.

The unemployment rate of the working age in 2022 was 1.81%, of which the
urban area was 1.53% and the rural area was 2.03%. The underemployment
rate of the working age was 1.2%, of which the urban area and rural area
were 0.7% and 1.7%, respectively.

Labor market demand

Industry accounts for the largest proportion of Dong Nai's economy,

accounting for about 60% of the total product in the area (GRDP). Therefore,
the demand for labor in this field is huge, including positions such as
production workers, engineers, technical staff, etc. Dong Nai's key industries
include electronics manufacturing, textiles, food processing, and automobile
manufacturing.

Other sectors also have significant labor needs, including services, trade, and
construction. Common positions in these fields include salespeople, service
workers, office workers, and construction workers.

2. Dong Nai economy

2.1. Key economic sectors of Dong Nai province

Dong Nai boasts a diverse and dynamic economy, but several key sectors
play a significant role in its success:

Manufacturing: This is the backbone of Dong Nai's economy, accounting for

nearly 60% of the province's GRDP. The sector is well-developed, attracting
major investments in areas like:
 Electronics: Manufacturing of smartphones, TVs, and other electronic
components, with companies like Samsung and NXP Semiconductors
setting up factories here.
 Textiles and Garments: Production of clothing, footwear, and
accessories for international brands, with companies like Texhong
Textile Vinh Long and Natsteel Apparel.
 Food and Beverage: Processing and production of food and
beverages, with renowned names like Nestlé and Coca-Cola having
facilities in the province.
 Automotive: Growing presence of auto parts and components
manufacturing, supported by major car manufacturers.

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Agriculture: Despite the focus on industry, Dong Nai remains a significant
agricultural producer with fertile land and abundant resources. Key products
include:
 Fruits: Longan, mango, durian, and other tropical fruits are major
exports.
 Rubber: Dong Nai is the largest rubber producer in Vietnam,
contributing significantly to the national rubber industry.
 Livestock: The province boasts a large and thriving livestock sector,
particularly in poultry and pig farming.
Services: The service sector is rapidly expanding, driven by the booming
population and rising purchasing power. Key areas include:
 Logistics and Transport: Dong Nai's strategic location as a
transportation hub attracts significant investment in warehousing,
logistics services, and port operations.
 Tourism: With historical sites, natural beauty, and proximity to Ho Chi
Minh City, Dong Nai offers exciting tourism opportunities and growing
hospitality services.
 Financial Services: Banks, insurance companies, and other financial
institutions are establishing a strong presence in the province, catering
to the needs of businesses and individuals.
Emerging Sectors: While traditional sectors dominate, new areas are gaining
traction:
 Renewable Energy: Dong Nai is making strides in solar and wind
power generation, attracting investments in renewable energy projects.
 Information Technology: With a young and tech-savvy population, the
IT sector is witnessing rapid growth, with numerous software
development companies and startups emerging.
 Creative Industries: Cultural and creative industries like media, film,
and design are gaining momentum, fueled by a vibrant local scene and
government support.
The diversity of these sectors contributes to Dong Nai's economic resilience
and makes it an attractive destination for investors and businesses seeking
growth opportunities.

2.1.1. Outstanding FDI enterprises and local Vietnamese companies

Dong Nai province is a magnet for both foreign direct investment (FDI) and
domestic giants, playing a crucial role in Vietnam's economic growth. Here's a
glimpse at some key players:

Company Names Major Business

FDI enterprises Samsung Electronics Manufacturing
smartphones, TVs, and
other electronic

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 components.
Nestlé Producing popular brands
like Milo, Nescafé, and
Maggi.
NXP Semiconductors Manufactures
semiconductors and
integrated circuits for
automotive, industrial,
and consumer electronics
applications.
Texhong Textile Vinh Long Producing yarn, fabrics,
and finished garments.
SCG Packaging Manufactures packaging
materials for various
industries, including food,
beverage, and
pharmaceuticals.
Local Vietnamese Masan Group Food processing (Masan
companies MEAT), retail (WinMart),
and consumer goods
(Knorr, Chin-su).
Hoa Sen Group Operating a plant in Dong
Nai, supplying steel
products to the
construction and
infrastructure sectors.
Vinamilk Contributing to dairy
industry and providing
high-quality milk products
to consumers.
Long Thanh Golf Club Attracting high-end
tourism and generates
revenue for the local
economy.
2.1.2. Dong Nai Industrial Parks
 Ong Keo Industrial Park

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Location: Phuoc Khanh Commune, Nhon Trach District, Dong Nai Province

Investor: Tin Nghia Corporation Joint Stock Company

Ong Keo Industrial Park was established in 2008 with a total area of 824
hectares. Up to now, this industrial park has an occupancy rate of nearly 90%.

Ong Keo Industrial Park is 15km from Ho Chi Minh City center, 12km from Cat
Lai port, 15km from Long Thanh international airport, 20km from Tan Son
Nhat airport, about 25km from Go Dau port and Thi Vai - Phuoc An port, about
25km from City. Vung Tau 55km.

The main industries invested in Ong Keo Industrial Park are: production and
processing of lubricants, gas, and liquefied petroleum gas; chemistry;
medicine; cosmetics; Food Processing; electricity; post and
Telecommunication; mechanical; paper production; building materials…

 Nhon Trach Industrial Park III

Location: Hiep Phuoc town, Nhon Trach district, Dong Nai province

Investor: Tin Nghia Corporation Joint Stock Company

Nhon Trach III Industrial Park was established in 1997 with a total area of
697.5 hectares. This industrial park was built in 2 phases:

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- Phase 1 with an area of 337 hectares, currently has an occupancy rate of
100%

- Phase 2 with an area of 360.5 hectares currently has an occupancy rate of

85.07%.

Nhon Trach III Industrial Park is located along Highway 51, on Road 25B,
30km from Ho Chi Minh City center, 30km from Ho Chi Minh City. Bien Hoa
45km, Phu My seaport 22km, Cat Lai port 25km, Long Thanh international
airport 10km, Tan Son Nhat airport 70km.

The main industries invested in Nhon Trach III Industrial Park are: assembling
electrical and electronic components, manufacturing dynamic machinery,
food, pharmaceuticals, flavors, cosmetics, manufacturing construction
materials, interior decoration, mechanical engineering, household electrical
appliances, electronics, refrigeration...

 Giang Dien Industrial Park

Location: Giang Dien commune, An Vien commune in Trang Bom district and
Tam Phuoc commune in Bien Hoa city, Dong Nai province

Investor: Sonadezi Giang Dien Joint Stock Company (belonging to Sonadezi

Corporation)

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Giang Dien Industrial Park was established in 2008 with a total area of 529
hectares. Up to now, this industrial park has an occupancy rate of over 70%.

Giang Dien Industrial Park is only 4km from National Highway 1A, only 9km
from National Highway 51, 20km from Ho Chi Minh City - Long Thanh - Dau
Giay Expressway, 43km from Cat Lai Port, 36km from Go Dau Port, Phu My
Port (Ba Ria - Vung Tau ) 47km, 49km from Tan Son Nhat airport, 22km from
Long Thanh international airport.

Giang Dien Industrial Park prioritizes inviting investment projects with

industries that use high and modern technology and cause little environmental
pollution. Currently, this industrial park is attracting industries such as food
processing, pharmaceuticals, cosmetics, electronics, technology, garments,
footwear...

 Amata Industrial Park

Location: Long Binh Ward, Bien Hoa City, Dong Nai Province

Investor: Sonadezi Company and Amata Corp. Public Company Thailand

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Amata Industrial Park was established in 1994 with a total area of 513
hectares. Up to now, this industrial park has an occupancy rate of 100%.

Amata Industrial Park is strategically located on National Highway 1A, 32km

from Ho Chi Minh City center, 32km from Saigon station, 4km from Dong Nai
port, 26km from Tan Cang, 32km from Saigon port, 40km from Phu My port,
Tan Cang international airport. Son Nhat 32km.

The main industries investing in Amata Industrial Park are: computers and
accessories, food processing, mechanics, electrical assembly, garments,
footwear, leather products, jewelry, and handicrafts. , plastic products,
packaging production, construction materials, car parts, pharmaceuticals,
chemicals, insecticides...

 Loc An – Binh Son Industrial Park

Location: Loc An commune, Binh Son commune and Long An commune,

Long Thanh district, Dong Nai province

Investor: V.R.G Long Thanh Investment and Development Joint Stock

Company

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Loc An - Binh Son Industrial Park was established in 2010 with a total area of
498ha. Up to now, this industrial park has an occupancy rate of over 85%.

Loc An - Binh Son Industrial Park is located in the Southeast of the city. Bien
Hoa follows Highway 51, away from City. Bien Hoa 25km, Ho Chi Minh City
center 17km, Long Thanh international airport 1.5km, Tan Son Nhat airport
60km, Bien Hoa station 20km, Go Dau port 15km, Phu My port 30km, Cai
Mep - Thi Vai port 40km …

The main industries invested in Loc An - Binh Son Industrial Park are:
mechanical engineering; Production of building materials; processing animal,
poultry and aquatic feed; Electronics and Telecommunication; production of
soap, detergents and hygiene products; textile; Oil and Gas; packaging
production, consumer goods production...

 Bau Xeo Industrial Park

Location: Song Trau commune, Tay Hoa commune, Doi 61 commune and
Trang Bom town in Trang Bom district, Dong Nai province

Investor: Thong Nhat Joint Stock Company

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Bau Xeo Industrial Park was established in 2006 with a total area of 500
hectares. This project is divided into 2 zones: zone 1 - north of National
Highway 1A with an area of 188ha and zone 2 - south of National Highway 1A
with an area of 311.3825ha. Up to now, Bau Xeo Industrial Park has an
occupancy rate of 98.1%.

Bau Xeo Industrial Park project is located along National Highway 1A, 2km
from Trang Bom railway station, City. Bien Hoa 20km, Long Thanh
international airport 20km, Go Dau port 40km, Phu My port 45km, 50km from
Ho Chi Minh City, Cai Mep port 60km.

The main industries investing in Bau Xeo Industrial Park are: processing
agricultural products, food, and animal feed; wood and plastic processing;
textiles, leather shoe production, jewelry; electronic and microelectronic
components; mechanical; wooden furniture production, interior decoration,
office; manufacturing pharmaceuticals, stationery...

 Song May Industrial Park

Location: Bac Son commune, Trang Bom district, Dong Nai province

Investor: Song May Industrial Park Development Joint Stock Company

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Song May Industrial Park was established in 1998, with a total area of 474
hectares. This industrial park was built and developed in 2 phases:

- Phase 1 with an area of 250 hectares, currently has an occupancy rate of

100%

- Phase 2 with an area of 223.95 hectares currently has an occupancy rate of

over 85%

Song May Industrial Park is located adjacent to National Highway 1A, far from
the city. Bien Hoa is 15km away from the city center. Ho Chi Minh 35km, Long
Thanh international airport 48km, Tan Son Nhat airport 55km, Bien Hoa
station 15km, Saigon station 35km, Saigon port 35km, Go Dau port 60km...

The main industries invested in Song May Industrial Park are: processing,
consumer goods production, meat and food processing, medicinal herbs,
garments, footwear, packaging, plastic products...

 Long Thanh Industrial Park

Location: An Phuoc commune and Tam An commune, Long Thanh district,

Dong Nai province

Investor: Sonadezi Long Thanh Joint Stock Company

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Long Thanh Industrial Park was established in 2003, with a total area of 487
hectares. Up to now, this industrial park has an occupancy rate of 98.59%.

Long Thanh Industrial Park is located on National Highway 51, 25km from Ho
Chi Minh City center, 25km from Ho Chi Minh City. Bien Hoa 15km, City. 50km
from Vung Tau, 42km from Saigon port, 25km from Cat Lai port, 35km from
Phu My port, 45km from Vung Tau port, 43.4km from Tan Son Nhat
international airport, 14.4km from Long Thanh international airport, 15km from
Bien Hoa station , Song Than station 30km…

The main industries invested in Long Thanh Industrial Park are: plating,
seafood processing, food production, fertilizer production and distribution,
pulp production and distribution, electricity - electronics, fiber production ,
plant protection chemicals, fashion, leather goods...

 Nhon Trach I Industrial Park

Location: Hiep Phuoc commune, Phuoc Thien commune and Phu Hoi
commune in Nhon Trach district, Dong Nai province

Investor: IDICO Urban and Industrial Park Development Company Limited

(IDICO-URBIZ)

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Nhon Trach I Industrial Park was established in 1997, with a total area of
446.5 hectares. To date, this industrial park has an occupancy rate of 100%.

Nhon Trach I Industrial Park is only 4km from Highway 51, from the city
center. 50km from Ho Chi Minh City, far from City. Bien Hoa 33km, Tan Son
Nhat airport 45km, Saigon station 55km, Go Dau port 15km, Phu My port
22km.

The main industries investing in Nhon Trach I Industrial Park are: mechanical
processing, machinery and equipment manufacturing, construction materials
production, motorbike repair, electricity, electronics, garment, leather shoe
processing, Processing industrial products and food...

 Long Thanh High-Tech Industrial Park

Location: Tam An commune, An Phuoc commune, Long Thanh town, Long

Thanh district, Dong Nai province

Investor: Amata Long Thanh Urban Joint Stock Company (part of Thailand's
Amata Group)

This is the province's first high-tech industrial park project, with an area of 410
hectares with a total technical infrastructure investment of over 282 million
USD.

Long Thanh High-tech Industrial Park project was granted an investment

certificate by Dong Nai Provincial People's Committee to Amata Long Thanh

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Urban Joint Stock Company in mid-2015. According to the original plan, the
project construction process was divided into 2 phases. paragraph:

- Phase 1 from 2015 to 2017

- Phase 2 from 2017 to 2020

However, due to problems with investment procedures, conversion of land

use purpose, compensation for site clearance, and resettlement, this industrial
park has not yet completed phase 1 technical infrastructure for investors.
Enterprises rent to use as factories.

Long Thanh High-tech Industrial Park is only 10km from Long Thanh airport,
20km from Cat Lai port, city center. 25km from Bien Hoa, about 22km from
District 2 (HCMC), 30km from Tan Son Nhat airport, 40km from Cai Mep port.

 Bien Hoa II Industrial Park

Location: Long Binh Tan Ward, City. Bien Hoa, Dong Nai province

Investor: Sonadezi Long Binh Joint Stock Company

Bien Hoa II Industrial Park was established in 1995, with a total area of 395
hectares. To date, this industrial park has an occupancy rate of 100% with
more than 130 projects, attracting famous investors such as Nestle,
Hisamitsu, Mabuchi, Aqua, Cargill...

Bien Hoa II Industrial Park is located on National Highway 1A, about 31km

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from Ho Chi Minh City - Long Thanh - Dau Giay Expressway, 25km from Ho
Chi Minh City center, only 2km from Dong Nai port, 26km from Cat Lai port,
53km from Cai Mep port , Phu My port 49km, Tan Son Nhat airport 35km,
Long Thanh airport 25km...

The main industries investing in Bien Hoa II Industrial Park are: mechanical,
electronics, electrical, electronic component assembly, garment, leather
shoes, rubber processing, food processing, construction material production.
Construction, jewelry manufacturing, production of equipment and spare
parts...

 Tam Phuoc Industrial Park

Location: Tam Phuoc Commune, City. Bien Hoa, Dong Nai province

Investor: Tin Nghia Industrial Park Development Joint Stock Company

Tam Phuoc Industrial Park was established in 2003, with an area of 323
hectares. To date, the industrial park has an occupancy rate of over 98.59%.

Tam Phuoc Industrial Park is located along Highway 51, far from the city
center. Bien Hoa is 30km, far from the city center. Ho Chi Minh 35km, from the
city center. Vung Tau 55km, Long Thanh international airport 10km, Tan Son
Nhat international airport 50km, Thi Vai port 25km, Saigon port 40km, Vung
Tau port 50km.

The main industries invested in Tam Phuoc Industrial Park are: wood
processing for export, garments, paint mixing, agricultural product processing,

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mechanics, construction materials, metal packaging...

2.2. Foreign direct investment

2.2.1. FDI figures and performance

Dong Nai is one of the most developed provinces in the country in terms of
industrial production. This is a destination where investors greatly benefit from
the interconnection between companies in terms of material supply.

For many years, Dong Nai has been among the nation’s leading provinces in
attracting FDI. Dong Nai started industrial development 20 years ago with the
construction of major industrial zones such as Amata, Bien Hoa Industrial
Park and Nhon Trach Industrial Park. Until present, 43 countries and
territories have invested in Dong Nai at a total registered capital of nearly
USD30.8bn, according to the Ministry of Planning and Investment. A
substantial amount of capital mainly comes from South Korean, Taiwanese,
Japanese, Singaporean, Chinese and Thai enterprises. A large number of
multinational corporations have moved their production lines to Dong Nai,
including Hyosung, Bosch, Amata, Fujitsu, Chang Shin, CP, Kenda and
Maggitt.

By 2025, 80% of FDI enterprises are expected to apply advanced technology,

modern management and environmental protection measures in their
production activities. By 2030, this rate will reach 100%.

The total realized social investment in 2022 in the province at current prices
reached 100,924.1 billion VND, up 9.62% compared to that in 2021 and
accounting for 23.2% of GRDP. The total capital included: State-owned capital
reached 11,386.6 billion VND, accounting for 11.28%, down 16.86%; the non-
state capital was 45,680.8 billion VND, accounting for 45.26%, up 11.9%; the
FDI capital reached 43,856.6 billion VND, accounting for 43.46%, up 16.79%.
In terms of economic activities, investment in the agriculture, forestry and
fishery sector was 2,448.3 billion VND, accounting for 2.43%; the construction
gained 64,892.7 billion VND, accounting for 64.30% and the service was
33,583.5 billion VND, accounting for 33.28% of the total investment in the
province.
In 2022, continue to invest in the construction of the Long Thanh airport
project, which mainly builds the resettlement area, with a total investment
capital of 22,856 billion VND.
Regarding foreign direct investment attraction, 50 projects were newly
licensed in 2022 with a registered capital of 491.54 million USD, down 5.7% in
number of projects and 27.7% in registered capital compared to that in 2021.
In 2022, the completed housing floor area reached 2,980 thousand m2 , an

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increase of 57.34% compared to that in 2021, of which the area of apartments
gained 171 thousand m2 , accounting for 5.74%, the area of single detached
houses reached 2,809 thousand m2 , accounting for 94.26%.

2.2.2. Opportunities for foreign investing

Dong Nai is strategically located between four key economic regions and
possesses a network of upgraded facilities and multi-axis infrastructure.
Accordingly, Dong Nai interconnects with the South-Central Coast, the South-
Central Highlands and the Mekong River Delta and is also a critical gateway
to the east of Ho Chi Minh City — Vietnam’s leading economic center.

Regarding transport infrastructure, Dong Nai has an all-inclusive infrastructure

that is comprised of an extensive network of national routes, inter-provincial
and inter-district roads. Dong Nai is one of a few provinces that has four
modes of transportation: road, railway, waterway and air.

The main economic “veins” of the province include the National Highway 1A,
National Highway 20, National Highway 51, North-South Railway and Ho Chi
Minh City – Long Thanh – Dau Giay Expressway. Moreover, Dong Nai is in
close proximity to Tan Son Nhat International Airport, the Cai Mep – Thi Vai
port cluster and Saigon – Cat Lai port cluster. Dong Nai also accounts for
more than 5% of the total length of Vietnam’s railways and has eight train
stations used for passenger and cargo transport. Furthermore, the Long
Thanh International Airport with an annual capacity of up to 100 million
passengers and five million tons of cargo is expected to enable Dong Nai to
become a leading center of logistics, industry and services in Vietnam as well
as Southeast Asia.

According to the Dong Nai Industrial Zones Authority, Dong Nai’s soil quality is
among the best in southeast Vietnam due to its hard ground, low permeability
and small slope (from eight degrees to 15 degrees). In addition, Dong Nai is
rarely hit by storms and floods, which is beneficial for foreign investors who
want to establish manufacturing facilities. Finally, as the province is
strategically located at the center of regional traffic, the cost of transporting
goods to ports and other provinces or cities will be significantly reduced.

Dong Nai currently has a strong competitive advantage as it possesses a

large, free and clear land bank.

As reported by the Dong Nai People’s Committee, among 35 industrial zones

with a total area of more than 12,000 ha in the province’s planning, 32 zones
have been completed and put into operation with an average occupancy rate
of up to 80%.

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The main industrial zones are divided into four areas: the central industrial
zone in Bien Hoa – Vinh Cuu – Trang Bom – Long Thanh, the concentrated
industrial zone in Nhon Trach – Go Dau, the eastern industrial zone in Long
Khanh, and the northern industrial zone in Tan Phu – Dinh Quan.

2.2.3. Challenges for foreign investing

While Dong Nai offers great potential for foreign investors, navigating its
landscape isn't without its challenges.

Infrastructure Bottlenecks:
 Traffic congestion: Traffic jams in Dong Nai City and surrounding areas
can disrupt transportation efficiency and add to operational costs.
 Overburdened utilities: Rapid urban development strains existing
infrastructure like power grids and water supply systems. Obtaining
permits for connection or enduring unreliable utilities can be frustrating.
 Limited public transportation: Reliance on private transportation can be
expensive and inefficient. Lack of robust public transport options within
the city can hinder employee mobility.
Regulatory Hurdles:
 Complex legal and bureaucratic procedures: Navigating Vietnam's
legal system and administrative processes can be time-consuming and
opaque for foreign investors. Obtaining permits, licenses, and
approvals can be complex and require expert guidance.
 Frequent changes in regulations: Policy amendments and regulatory
adjustments can occur without much notice, leading to uncertainty and
potentially impacting existing investments.
 Corruption concerns: While efforts are being made to combat it,
corruption remains a concern in Vietnam. Investors need to be cautious
and implement anti-corruption measures.
Workforce Considerations:
 Skill gaps: While Dong Nai has a large workforce, certain sectors face
skill shortages, particularly in high-tech industries and specialized
professions. Finding qualified personnel can be challenging and might
require upskilling existing employees or recruiting talent from abroad.
 Competitive labor market: Talent poaching and high employee turnover
are common in certain sectors. Retaining skilled employees requires
competitive salaries, benefits, and career development opportunities.
 Cultural differences: Understanding Vietnamese work culture and
adapting management styles can be crucial for building successful
teams and fostering effective communication.
Economic Volatility:
 Global economic trends: Global economic downturns can impact
Vietnam's export-oriented economy and affect investor confidence.

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 Foreign businesses need to be prepared for potential market
fluctuations.
 Currency fluctuations: The Vietnamese dong can be volatile, exposing
foreign investors to currency exchange risks. Hedging strategies and
financial planning are essential to mitigate these risks.
 Dependence on specific industries: Dong Nai's economy relies heavily
on some key sectors like manufacturing and tourism. A downturn in
these sectors can have a significant impact on foreign investments.
Despite these challenges, Dong Nai remains a compelling destination for
foreign investors. Its strategic location, diverse economy, and growth potential
offer significant rewards.

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