Unlocking Vietnam's Growth: Bac Ninh as Strategic Gateway for Investment and Expansion

Investors clearly favor Vietnam, a trend set to continue. According to the International Monetary Fund (IMF), Vietnam's GDP experienced a growth of 5.05% in 2023, with a projected increase to 5.8% in 2024. The IMF also forecasts that Vietnam will be among the top 20 fastest-growing economies globally in 2024. Given its favorable and stable investment climate, an increasing number of enterprises are looking for ways to capitalize on the economic opportunities.

Industrial Zones: prime choice for expanding in Vietnam
For foreign investors looking to expand their manufacturing facilities or distribution supply chain in Vietnam, one of the prime options to consider is the country's numerous Industrial Zones (IZ). They are increasingly popular among investors. According to data from the Vietnam Association of Realtors (VARS), it is expected that in 2024, FDI in industrial zones and economic zones will account for about 45% of the total registered FDI capital of the country. As such, IZs play a vital role in the country's expansion strategy and have a significant impact on local economic growth.

The most active industrial parks in Northern Vietnam are located in provinces such as Bac Ninh, Hai Phong, Hai Duong, and Vinh Phuc. These Northern industrial zones have particularly benefited from the trend of manufacturing shifting from China to Vietnam. They offer favorable conditions for business investment, including tax incentives and high-quality infrastructure. One of the most prestigious among these is the Bac Ninh Industrial Zone (IZ), which, over the years, has attracted leading global companies such as Samsung, Canon, Microsoft, Foxconn, Goertek, and Amkor Technology. Consequently, it has developed into one of the largest centers for the electronics industry in the country.

Strategic location makes Bac Ninh a top business choice
Bac Ninh stands out among other provinces due to its strategic location. Situated in the Red River Delta and within the Hanoi-Hai Phong-Quang Ninh Economic Triangle, it serves as the northeastern gateway to Hanoi. The distance to the Hanoi city centre is only 25 kilometers. The province has high quality transportation infrastructure, being only 30 km away from Noi Bai International Airport and 100 km from Hai Phong, Ha Long, Cai Lan Port. With the Lang Son border gate at 120 km via highway 1A, it is also on the major traffic artery linking Vietnam and China.

Although it is the smallest province of Vietnam by area, with a population of just under 1.5 million people, the total area of industrial parks in Bac Ninh, as well as the average size of each park, is high. The presence of multinational companies in Bac Ninh's industrial parks significantly contributes to the province's economic development. They also help to consolidate the infrastructure, attract other businesses, and create jobs.

Bac Ninh Industrial Parks ideal for diverse sectors
With the numerous benefits offered by the Bac Ninh industrial parks, they have become ideal locations for businesses in sectors such as Electronics and Technology, Automotive and Transportation Equipment, E-commerce and Retail, and Pharmaceuticals and Healthcare.

DB SCHENKER is the right partner for logistics solutions in Bac Ninh
DB SCHENKER operates two state-of-the-art multi customer warehouses, BN1 and BN2, located in the Bac Ninh industrial zone within the Vietnam – Singapore Industrial Park (VSIP), spanning a total area of 13,500 sqm. Our core services at Bac Ninh are warehousing and distribution. Moreover, we also provide a comprehensive suite of Value-Added Services (VAS) including Labeling, Repackaging, Product Assembly, Bundling and more, capitalizing on the dynamic business environment to deliver superior logistical solutions.

To explore about our warehousing operations in Bac Ninh Industrial Zone, please visit our website or get in touch with our Contract Logistics Business Development Manager.