Nam Dinh, a province situated in the heart of the Red River Delta, is rapidly emerging as a key hub for investment in northern Vietnam. With its strategic location, robust infrastructure, and a well-educated labor force, Nam Dinh offers a compelling environment for businesses looking to establish or expand their presence in Vietnam.
Nam Dinh has implemented decisive and coordinated measures to boost investment and drive local socio-economic development. (Source: Internet).
Economic Growth and Infrastructure Development
Nam Dinh has shown impressive economic performance, with a notable 8.5% increase in Gross Regional Domestic Product (GRDP) in the first half of 2023. This growth has been largely driven by substantial expansions in the industrial and construction sectors, reflecting the province's strong focus on industrialization and economic modernization.
The province is exceptionally well-connected, enhancing its appeal as an investment destination. Nam Dinh boasts a trans-Vietnam railway, a 72 km coastline, and important river ports that facilitate the transport of both passengers and goods. Recent investments in port capacities and the construction of new transport routes further underscore Nam Dinh's commitment to improving its logistics infrastructure. These developments are crucial for supporting the province's growing industrial base and facilitating smoother trade and transportation.
Competitive Business Environment
Nam Dinh has made significant strides in enhancing its business environment, as evidenced by its improved ranking in the Provincial Competitiveness Index (PCI). The province has implemented wide-ranging administrative reforms, improved access to land, and strengthened legal institutions, all of which have made it a more attractive destination for investors.
One of the key advantages of investing in Nam Dinh is the competitive industrial park rental prices. Currently, the rental prices in Nam Dinh are relatively lower compared to neighboring provinces, being about 15-20 USD/m² cheaper than in Ha Nam and similar to those in Thai Binh. This cost-effectiveness extends to labor as well, with Nam Dinh boasting the largest labor force in the southern Red River Delta provinces. Workers in industrial parks currently earn between 6-8 million VND per month, depending on the industry, making labor costs in Nam Dinh particularly competitive.
A Well-Educated Workforce and Opportunities for Growth
Nam Dinh's labor force is one of its greatest assets. The province has a strong tradition of education and has led the national high school graduation exam results for 29 consecutive years. However, despite its educational prowess, Nam Dinh has not yet attracted a significant number of high-quality workers. There is, however, a promising potential to draw these talents back to the province, especially as Nam Dinh continues to develop in high-tech fields and innovation.
The province is currently prioritizing investment in key sectors such as electronics, mechanical engineering, automotive, semiconductors, energy (including gas, wind, and solar power), pharmaceuticals, wastewater treatment, and smart urban development. The presence of a highly educated workforce, coupled with the province's focus on these high-tech and innovative industries, positions Nam Dinh as a prime location for future growth.
A Stronghold in the Textile Industry
Nam Dinh stands as a top textile center in Vietnam, second only to Binh Duong, with a production capacity of 175 million meters of fabric per year. The Rạng Đông Textile Industrial Park (AURORA), covering an area of 600 hectares along the coast, is a testament to the province's strength in this sector. This industrial park, with its modern, ready infrastructure, is currently attracting significant investment, reinforcing Nam Dinh’s position as a leading player in the textile industry. The province's well-established textile industry continues to be a major contributor to its economy and offers abundant opportunities for investors looking to tap into this vibrant sector.
Rang Dong AURORA Textile Industrial Park (Source: auroraip.vn)
Expanding into High-Tech Fields
In addition to its robust textile industry, Nam Dinh is making strides in attracting investment in high-tech fields. In 2023, Nam Dinh attracted significant investment from Quanta Group, a Taiwanese company and the largest chip supplier for Apple. Quanta invested in building a computer and semiconductor component manufacturing plant in the province. Remarkably, the investment license was granted within 24 hours of receiving the complete application, and the plant was inaugurated and began production in June 2024. This development has paved the way for other electronic companies, particularly Quanta's supporting manufacturers, to invest in Nam Dinh, signaling a promising future for the electronics and semiconductor industries in the province.
Nam Dinh provincial leaders witnessed the project development signing ceremony between Dai Phong Infrastructure Construction Joint Stock Company and Quanta Computer Inc. (Source: baochinhphu.vn)
Nam Dinh is a province on the rise, offering a compelling mix of strategic location, robust infrastructure, competitive costs, and a well-educated workforce. With its commitment to enhancing the business climate and its focus on key growth sectors, Nam Dinh is poised to become a leading destination for both domestic and international investors. Whether in traditional industries like textiles or emerging sectors such as electronics and semiconductors, Nam Dinh presents a dynamic and promising environment for investment and growth.
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