Northern Vietnam province plans $17.6 bln free economic zone to draw high-tech supply chains

Hung Yen province, which neighbors Hanoi, plans to develop a large-scale free economic zone with an estimated investment of VND463 trillion ($17.6 billion), part of a broader push to attract high-tech industries and multinational supply chain players.

The provincial Party Committee has agreed to submit the plan to the Politburo, the country's highest decision-making body, for consideration.

According to their proposal, the zone would initially cover about 30,583 hectares. Authorities are studying an additional westward expansion of roughly 13,000 hectares and the reclamation of about 17,000 hectares of coastal land to the east, creating a large development area divided into three functional zones.

The project is envisioned as a multi-sector economic hub anchored by applied research, high-tech manufacturing, new energy industries, and advanced logistics services. Plans include major infrastructure such as seaports, airports, and resort urban developments designed to support international business operations.

Hung Yen, a neighbor of Hanoi and Thai Binh, a coastal province, both in northern Vietnam, were merged last July to form the new Hung Yen which borders Bac Ninh, Ninh Binh, Hanoi, Hai Phong, and the East Sea.

Hung Yen Vice Chairman Le Quang Hoa said the zone is intended to attract large multinational corporations involved in global supply chains while opening a new growth frontier for the province.

The province has proposed 12 groups of policies comprising 31 special mechanisms aimed at drawing investment, he noted. The package includes 18 of the most favorable investment policies currently available in Vietnam along with 13 new measures designed to align with international standards.

Unlike many industrial developments that rely heavily on tax breaks, the proposed framework emphasizes structural improvements to the investment climate.

The policy design is built on four principles: limiting dependence on tax and fee incentives, creating a streamlined and investor-friendly business environment, ensuring international competitiveness, and tailoring policy tools to the operational needs of global companies, he elaborated.

Total capital requirements for the project are estimated at around VND463 trillion ($17.6 billion) over three phase during 2025-2050.

The first stage, from 2025 to 2030, would focus on planning, construction of core infrastructure, and pilot implementation of the special mechanisms.

From 2030 to 2040, authorities aim to accelerate the attraction of strategic investors and expand the zone’s industrial footprint. The final phase, spanning 2040 to 2050, would complete the broader economic ecosystem and position the zone as a globally competitive free economic hub.

Hung Yen Party chief Nguyen Huu Nghia said the initiative is expected to become a key driver of long-term growth for the locality. By drawing high-quality investment and advanced industries, the project could significantly boost productivity and help transform Hung Yen into a modern industrial center while also strengthening its role in emerging maritime and energy sectors.

As of January, Hung Yen, home to the Trump-linked golf and resort project, had attacted 932 foreign-invested project totalling $16.7 billion, according to the local industry and trade department.