Hung Yen: From latent strengths to Northern Vietnam's premier investment destination
In the context of economic space restructuring following the merger, Hung Yen is asserting its position as one of the most dynamic industrial centers in the region.
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According to the latest data from the Management Board of Hung Yen's Industrial Parks, by October 2025, the province will have established one economic zone and 23 industrial parks, covering a total area of 5,891 hectares, with a 64.9% occupancy rate. Additionally, there are 74 industrial clusters covering a total area of 3,931 hectares, with 34 clusters currently operational.
According to the development plan with a vision to 2050, Hung Yen aims to develop 35 industrial parks with a total area exceeding 12,000 hectares. By 2030, 30 industrial parks covering nearly 9,600 hectares are expected. Currently, 10 industrial parks are operational and receiving secondary investment projects. Two have been established but are not yet operational, and seven are undergoing planning adjustments.
Notably, the 2020-2025 period marks a significant leap with the establishment of 11 new industrial parks (a 3.4-fold increase compared to 2016-2020), 26 new industrial clusters (a 1.5-fold increase), attracting an additional 559 projects, raising the total number of effective projects to 2,478 with a total registered capital of 396 trillion VND and over 9.4 billion USD.
In the industrial parks (IPs) and economic zones (EZs) alone, Hung Yen has attracted over 1,100 projects, including 544 FDI projects and 581 domestic projects, with a total registered capital equivalent to over 19 billion USD. The average occupancy rate is 57.4% with 636 effective projects, and the average investment is 6.8 million USD per hectare.
Pho Noi A Industrial Park - Hung Yen's "Shining star"
Established in 2004, Pho Noi A IP, with a scale of nearly 600 hectares (including 420 hectares of leasable industrial land), is a model industrial park of the province. Located at Km19 on National Highway 5A, just 24 km from Hanoi's center, 43 km from Noi Bai Airport, and 101 km from Dinh Vu Port (Hai Phong), this IP boasts a "golden" geographical location.
Developed by Hoa Phat Group, Pho Noi A IP has achieved a 98% occupancy rate, attracting nearly 30 trillion VND and 1.236 billion USD in investment in just the first eight months of 2025. Major multinational corporations such as Canon, Toto, Inax, and Sumitomo have established their presence here, forming a cluster of electronics, precision mechanics, and modern equipment manufacturing.
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| Pho Noi A Industrial Park, Hung Yen Province. |
Thang Long II Industrial Park - A symbol of Vietnam-Japan Cooperation
Managed by a joint venture between Sumitomo Corporation (Japan) and Thang Long Industrial Park Co., Ltd., Thang Long II IP spans 525.7 hectares (including 401.42 hectares of leasable industrial land) and stands as a testament to the success of strategic cooperation models.
This IP has attracted over 100 projects with a total registered capital exceeding 3 billion USD, accounting for nearly half of the total FDI in the former Hung Yen province. With a 90% occupancy rate, available land is extremely limited.
In December 2023, the Chairman of the Provincial People's Committee and representatives from Sumitomo Corporation exchanged a Memorandum of Understanding (MoU) to promote the Thang Long II IP Phase 4 project, covering an area of 3.92 km² with a total investment of 500 million USD, focusing on expanding commercial and residential areas.
Lien Ha Thai Industrial Park - A rising star post-merger
Previously part of Thai Thuy District, Thai Binh Province, Lien Ha Thai IP (GREEN iP-1) is now part of Hung Yen Province following the merger on July 1, 2025. With an industrial land area of 588.84 hectares (total planned area of 807.88 hectares) and a total investment of approximately 3.885 trillion VND, this IP is expected to become a new growth driver.
Currently, the occupancy rate stands at 51%, with 20% of units under negotiation and 29% of the land available for new investors. Lien Ha Thai IP has attracted over 40 projects, with a total capital of nearly 1.6 billion USD, including large-scale projects such as the Yuan Long Vietnam factory (commenced in May 2025) and the Greenworks factory (groundbreaking for phase 2 in August 2025).
This IP's strategic location is 120 km from Hanoi, 60 km from Hai Phong City, 35 km from Lach Huyen Port, and 40 km from Cat Bi Airport, especially just 5-10 km from the coastal road (expected completion in October 2025), providing a significant advantage for marine economy and logistics development.
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| Perspective of Industrial Park No. 3, Hung Yen. |
Industrial Parks No. 1 and No. 3 - The new generation aiming for high technology
In September 2025, the People's Committee of Hung Yen Province approved the investment policy for Industrial Park No. 01 Phase 1, covering 216.17 hectares, with a total investment of 2.32568 trillion VND, developed by Viglacera Hung Yen JSC.
Industrial Park No. 01 is oriented to become the province's first high-tech industrial park, attracting high-tech and information technology projects listed under the specially incentivized investment categories. The project is scheduled to commence on December 19, 2025, and is expected to be ready for investors by Q4 2026.
This IP is developed based on three main pillars: Green and Sustainable, Smart and Modern, and Connected and Symbiotic, aiming for international standards in operation and sustainable development.
Meanwhile, Industrial Park No. 3 is also a highlight, boasting a 70% occupancy rate (as of May 2025). It is planned according to green, modern, and advanced industrial park standards, with a one-time land payment policy, and is conveniently located near the Hanoi - Hai Phong Expressway.
Attractive incentive policies and investment environment
Hung Yen applies the highest level of investment incentives as per legal regulations for projects in industrial parks.
Regarding land lease: Maximum lease term of 50 years, extendable upon expiration. Land lease exemption during the basic construction period for up to 3 years. After the operation, depending on the project's nature, exemptions range from 3 to 11 years (agricultural and rural projects may receive up to 11 years).
Regarding taxes: A corporate income tax rate of 20% is applied, with tax exemptions and reductions depending on the project's nature. For worker housing projects in IPs, social housing, water supply, and maintenance stations, land lease is exempted for the entire lease term.
Regarding science and technology, in September 2025, the Provincial People's Council passed Resolution No. 745/2025/NQ-HĐND, outlining policies to encourage and support the development of science, technology, innovation, and digital transformation until 2030, with a focus on technology transfer, application, and innovative startups.
According to a 2025 survey, land lease prices in Hung Yen's industrial parks range from 90 to 150 USD/m² per Lease cycle (approximately 50 years), which is considered competitive compared to neighboring provinces. Some IPs with modern infrastructure and proximity to expressways can achieve lease rates of 150-180 USD/m² per Lease cycle.
Impressive achievements of Hung Yen in the industrial park sector
In 2024, the former Hung Yen entered the top 10 national PCI index for the first time with 70.18 points, a 43-rank increase from 2020. Notably, in the first 8 months of 2025, Hung Yen rose to lead the nation in the PCI index, demonstrating significant improvements in the investment environment.
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| In the first 8 months of 2025, Hung Yen led the nation in the PCI index. |
The province has reduced processing time for procedures by at least 30%, enhanced digital technology application in management, and supported businesses throughout the project lifecycle. The public administrative service center serves as an effective bridge between the government and enterprises.
From the beginning of the year to September 2025, industrial parks in the area achieved a total implemented investment capital of 18.687 trillion VND, equivalent to 87% of the annual plan. Sixty projects became operational, exceeding the target by 150%, resulting in approximately 1,500 new jobs.
In the first nine months of the year, the province attracted a total capital of 1.72 billion USD (921 million USD in FDI and 20.768 trillion VND in DDI), achieving 172% of the annual plan. This includes one new industrial park infrastructure project with a capital of 2.326 trillion VND, along with 107 new projects (52 FDI and 55 DDI) and capital increases for 46 projects.
Notable FDI projects include: LCD polarizer film production by Nitto Vietnam Co., Ltd. (132 million USD), optical cable production by Molex Vietnam Co., Ltd. (128 million USD), RFID label production by Arizon Technology Vietnam Co., Ltd. (67.5 million USD), and factories of Lotes Vietnam, Compal Electronics Vietnam, and GEL-O&J.
The average industrial production value growth rate from 2021 to 2025 is estimated at 11.1% per year, with the manufacturing and processing industries growing at 10.8% per year, accounting for 37.8% of the GDP in 2025.
Potential and future development directions
Hung Yen boasts a strategic location within the Hanoi-Hai Phong-Quang Ninh economic triangle, serving as a crucial link in the Northern Key Economic Region. Major transportation routes, such as National Highway 5A, the Hanoi-Hai Phong Expressway, and the connecting road between the Hanoi-Hai Phong and Cau Gie-Ninh Binh expressways, facilitate regional connectivity.
According to the plan, key expressway and ring road projects, such as Ring Road 4, Ring Road 5, the Hung Yen - Thai Binh Expressway, and the Ninh Binh - Hai Phong Expressway, will be implemented synchronously. The province will have at least one multimodal logistics center as it upgrades Pho Hien Port and Diem Dien Port to enhance competitiveness.
Hung Yen is orienting the development of new-generation industrial parks in accordance with international standards for operation and sustainable development. Priority is given to attracting high-tech, information technology, electronics, semiconductor, digital technology, automation, and environmentally friendly projects.
Notably, Industrial Park No. 05, covering 192.64 hectares, is "reserved" for Taiwanese semiconductor enterprises, reflecting a focused and targeted investment attraction strategy.
Additionally, the province is swiftly completing the dossier to submit to the Government for approval of the establishment of the Hung Yen Free Economic Zone (FEZ), based on the Thai Binh Economic Zone, along with investing in Diem Dien Port, which is capable of accommodating 200,000-ton vessels.
FEZ Hung Yen is envisioned as a multi-sector, integrated economic model that links industry, commerce, finance, technology, energy, and logistics, utilizing specialized and superior policy mechanisms, aiming to become a convergence center for global technology, finance, and logistics corporations.
With a solid foundation from a robust industrial park system, attractive incentive policies, a favorable investment environment, and a long-term strategic vision, Hung Yen has the potential to become one of the leading industrial centers not only in the Red River Delta but also nationwide, significantly contributing to the country's industrialization and modernization efforts.
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