Vietnam electronic components hub Vinh Phuc province seeks more hi-tech investments

Vinh Phuc province in northern Vietnam, which has emerged as a favored destination for electronics ancillary companies, is seeking to attract more high-tech manufacturers.

The province is home to around 200 companies that manufacture electronic components including a host of foreign-invested companies. Some of these are South Korea’s Partron Vina with an investment of $270 million; Heasung Vina with a $165-million project; Power Logics Vina’s $100-million project; and BH Flex Vina’s $61-million project.

The Vinh Phuc government sees the electronic components industry as a major driver of the local economy. In the first seven months of this year, production of electronic components in the province soared 15.3% year-on-year.

Despite global headwinds and supply chain interruptions, electronic components manufacturers in the province like Compal, BG Flex, DKT Vina, Interflex Vina and Arcadyan have managed to secure stable orders from global tech giants like Apple, Dell, Samsung and Google.

Local officials say that a main competitive edge is the province’s strategic location. It is well connected by air, sea, and road with Northeast Asian countries that are home to major electronics companies.

In the first half of this year, foreign investors registered to invest $436 million in this province, 9% more than the annual target. Of this, about $210 million was funneled into electronics manufacturing.

FDI policy fine-tuning

Vinh Phuc, which also houses vehicle majors like Honda, Yamaha and Piaggio, has adopted a strategy for foreign direct investment for the 2021-2030 period that involves exploiting its locational advantages.

The province has been aggressively developing traffic infrastructure. It is close to Hanoi’s Noi Bai International Airport and Hai Phong city’s seaports.

It also has 19 prime minister-approved industrial parks, of which 16 have been licensed with a combined area of 3,157 hectares. Of these, eight are operational with high occupancy rates.

According to the provincial master plan, Vinh Phuc will have five more industrial parks, raising the total area to 7,000 ha by 2030 and 10,000 ha by 2050. They will be located next to crucial roads and close to the capital city.

It aims to attract projects with high and advanced technologies and spill-over effects. It is focused on attracting large-ticket projects to set up core establishments that will attract suppliers and form value chains in the province.