Vietnam’s northern localities have emerged as popular destinations for foreign investors seeking opportunities and possible partnerships.

Figures from the Foreign Investment Agency (FIA) at the Ministry of Finance
(MoF) show that total registered FDI in Vietnam reached over $26.14 billion in 2,534
new projects during the first eight months of 2025. Among the Top 10 cities and
provinces attracting the most FDI are five in the country’s northern region: Bac
Ninh, with over $4.68 billion, Hanoi with over $3.8 billion, Hai Phong with $1.71
billion, Ninh Binh with $1.53 billion, and Hung Yen with $1.39 billion. These numbers
reflect a trend of foreign investors flocking to the north with long-term confidence
in the region’s business environment, infrastructure, and workforce.

Rising
star

One notable highlight is that, in September, northern Vietnam witnessed a strong
wave of major enterprises coming to conduct surveys and explore opportunities for
expanding their investments.

One was Shemar Power from China, a high-tech enterprise specializing in the
research, development, and production of power products made from new materials.
The company is planning to build up to five factories in Vietnam, with total investment
of $190 million, and has selected Bac Ninh province as its strategic investment
destination. Its plans are considered an important step that further consolidates
Bac Ninh’s position on the FDI map.

To implement its investment plan, Mr. Ma Bin, Founder and Chairman of the Board
of Directors at Shemar Power, expressed expectations that Bac Ninh will support
the company in finding suitable locations, offer it preferential tax and land policies,
and provide quick guidance on the necessary investment and business procedures.

Similarly, a working delegation from the WLA Development Foundation in
China also conducted a field survey in Bac Ninh to explore opportunities for cooperation
in urban infrastructure and smart city development. Mr. Wu Xiang Dong, Chief Director
of the WLA Development Foundation, said he greatly values the province’s potential,
advantages, and strategic location, while also expressing keen interest in its orientation
towards scientific and technological development and smart urban construction.

Beyond Bac Ninh, Hung Yen province has also emerged as a rising star in northern
Vietnam’s FDI landscape. With a strategic location following its merger with part
of former Thai Binh province, coupled with a well-developed transport and industrial
infrastructure network and increasingly open investment policies, Hung Yen has quickly
become a popular choice for major corporations from Japan, South Korea, Singapore,
and elsewhere.

One potential investor is Haemologic Biotech from Australia, which
specializes in the manufacturing of high-tech medical equipment. The company is
planning to establish a factory in Vietnam to expand its scale and optimize its
global supply chain, and has already conducted surveys at several key industrial
parks in Hung Yen. “The development of industrial park infrastructure and supporting
services in Hung Yen has created a favorable and well-coordinated environment for
investors,” Mr. Michael Gallagher, Managing Director of Haemologic Biotech,
emphasized.

The province is not only attracting industrial investment but has also become
a destination for large-scale projects in real estate and tourism. Hung Yen was
recently selected by the Trump Organization as the site for the Trump International
Hung Yen project – a mixed-use complex featuring urban development, eco-tourism,
and a golf course in Khoai Chau – with total investment of more than $1.5 billion,
making it one of the largest FDI projects in the province to date.

Additionally, large foreign investors such as Samsung, Foxconn, Hana Micron,
Canon, Goertek, Luxshare, and Amkor have also established a presence and continually
expanded operations in the northern region. This not only underscores its enduring
appeal for electronics and semiconductor industries but also elevates the region’s
position within the global value chain.

Converging
competitive advantages

Many of Vietnam’s northern localities has emerged as attractive destinations
for FDI as they bring together a host of outstanding competitive advantages. With
its strategic geographic location, northern Vietnam is well-positioned to connect
seamlessly with global supply chains while also expanding access to international
markets.

In particular, industrial infrastructure in the region has been increasingly
upgraded and refined, ranging from industrial parks and economic zones to seaports,
airports, and expressway networks. This provides a solid foundation not only for
manufacturing activities but also for trade and exports.

According to Mr. John Campbell, Director and Head of Industrial Services at
Savills Vietnam, the difference in land rentals between Vietnam’s north and south
is also a decisive factor for many investors, with rentals in industrial parks in
the country’s north often being significantly lower than in the south. “Beyond the
advantage of more competitive land rentals, northern Vietnam is also attracting
FDI flows of medium to high-tech levels, focusing on high value added sectors such
as automobiles, machinery and equipment, semiconductors, electronics, and solar
energy,” he emphasized.

In terms of supply, many new industrial park projects are expected to continue
opening in the north in the immediate future, which is forecast to further accelerate
the shift of FDI into the region, especially in high-tech manufacturing and support
industries.

Alongside affordable land costs and abundant supply, well-developed transport
infrastructure further strengthens the north’s competitiveness. The Northern Key
Economic Region, which includes Bac Ninh and Hai Phong, enjoys a favorable location
near China and northeast Asian markets. The region currently accounts for approximately
61 per cent of Vietnam’s total expressway length, highlighted by the Lao Cai – Quang
Ninh Expressway spanning 600 km, which enables rapid connections between industrial
parks, the capital Hanoi, and the northern border.

Beyond road networks, the network of seaports in Hai Phong and Quang Ninh,
together with two international airports – Noi Bai International Airport in
Hanoi and Cat Bi International Airport in Hai Phong – creates optimal conditions
for supply chain development and the expansion of international trade. This comprehensive
connectivity positions northern Vietnam as an increasingly important logistics hub
for the region.

Moreover, many foreign investors view northern localities not only as favorable
production sites but also as strategic destinations within both regional and global
supply chains. As a result, FDI projects in northern localities are not limited
to manufacturing but are also oriented towards establishing research and development
(RD) centers, workforce training facilities, and initiatives that generate
sustainable value for the supply chain. “Locating our factory in Hung Yen will allow
us to be closer to the Asian market, shorten logistics times, and enhance the competitiveness
of our high-tech medical devices,” Mr. Gallagher added.

To fully leverage these advantages and continue attracting high-quality FDI,
northern localities have proactively developed flexible and effective investment
promotion mechanisms and policies in recent years. Local authorities have also focused
on offering incentives tailored to specific industries and locations, particularly
within industrial parks and technology parks, while prioritizing high-tech sectors,
manufacturing and processing, high-quality services, research, and innovation.

Many northern localities are also pursuing a selective investment approach,
prioritizing projects that emphasize advanced technology, environmental sustainability,
commitments to technology transfer, and stronger links with domestic enterprises.
This strategy not only helps northern Vietnam sustain its appeal among foreign investors
but also enhances the quality, sustainability, and spillover effects of FDI inflows
over the long term.

VET-Phuong Hoa