Ha Nam – Emerging star in FDI Attraction

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Among the addresses that foreign enterprises choose to relocate their factories from China to Vietnam in 2019, besides the familiar names such as Hanoi, Bac Ninh and Binh Duong, there is also Ha Nam. In recent years, Ha Nam has emerged as a “golden” address to attract foreign investors come to set up company in Ha Nam.

According to CBRE, US – China trade tensions, investment capital and new free trade agreements have had a positive impact on Vietnam’s industrial market. In particular, Vietnam is attracted by young and low-cost labor force, stable political environment, and one of the fastest growing countries in the world.

Compared with neighboring countries such as Malaysia, Indonesia, India, China, Vietnam has the lowest construction cost of workshops, about 600 USD/m2 (India is 700 USD/m2, Indonesia and China 900 USD/m2, Malaysia 1200 USD/m2).

In terms of attraction to investors, Ha Nam has many more advantages when this locality has a much lower cost ground than Hanoi and Ho Chi Minh City. Ha Nam is chosen by Yokowo (a 100% Japanese-owned enterprise specializing in assembling and manufacturing communication equipment on motor vehicles) and many other companies from Japan and Korea is understandable.

Particularly in Ha Nam province, there are 82 Japanese enterprises and 108 Korean enterprises investing here. In particular, many businesses are investing effectively such as Honda Vietnam Co., Ltd., Sumi Wiring Co., Ltd., NMS Co., Ltdā€¦

Many investors share the reason that they choose Ha Nam to invest because the province is located geographically near Hanoi capital, Hai Phong port and the traffic connecting with other provinces in the region is very convenient. Moreover, the province also has many preferential policies to attract investment such as: having clean industrial land fund, abundant and skilled labor force; security and order are guaranteed; Industrial zones are built with infrastructure systems such as roads, electricity, clean water systems, wastewater treatment stations relatively synchronous…

Besides, at the present, Ha Nam industrial parks are invested quite synchronously in infrastructure, meeting long-term development requirements for businesses.

In recent years, Ha Nam has been recognized as an increasingly attractive destination for investors. Only from 2016 to 2019, industrial parks in the province have attracted 170 projects, of which 68% are foreign direct investment (FDI) projects. In the first 8 months of 2019, Ha Nam attracted 66 projects and adjusted capital of 38 projects. The total newly and adjusted registered capital is 304.2 million USD and 8014.1 billion VND.

In addition to the advantages of geographical location, human resources, focusing on infrastructure development, the policies to attract investment of Ha Nam are implemented quite synchronously, especially the strong commitment from authorities. Some commitments that the province has made such as providing enough electricity 24/24 for businesses; The time limit for issuing Investment Certificates is not more than 3 days; Providing administrative procedures, tax procedures applied on an electronic platform to bring convenience and accuracy; Ensuring infrastructure and providing essential services to enterprises’ fences, including electricity, water supply, telecommunications, collection and treatment of waste water and wastes for enterprises; Ensuring security and order…

In addition to the important factors for investors to rest assured production, the success of Ha Nam’s FDI attraction also comes from the consistent policy and sustainable development strategy of the province.

It can be said that FDI enterprises are now an important factor in restructuring the economy and making positive contributions to the economic development of Ha Nam.

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