La Son Industrial Park: A New Chapter for Hue’s Economic Growth
Author: Dinh Duy, Thai Ha
Published on: Sat, December 13, 2025 | 9:54 AM GMT+7
The landscape of industrial development in Vietnam is evolving, and Hue city is now poised to take a significant leap forward. The People’s Committee of Hue has tentatively approved the La Son Industrial Park – Zone 1 project, a major initiative anticipated to transform the region’s economic dynamics. With a total investment of over VND3 trillion ($114 million), this project signals a new era for industrialization in central Vietnam.
Project Overview and Timeline
The La Son Industrial Park will extend over approximately 467.2 hectares in the Hung Loc and Loc An communes. This ambitious endeavor will not only provide job opportunities but also stimulate local economies. The project is structured to run for 50 years, contingent on the state’s land lease agreement. This long-term framework is designed to attract serious investors, with a bidding process set to select the most suitable candidates for land-use rights.
Financial Breakdown
An estimated VND2.54 trillion ($96.63 million) will be utilized for project implementation costs. In addition, over VND533 billion will be allocated for compensation and resettlement expenses, highlighting the commitment to ensuring a smooth transition for affected communities. Investors will be expected to contribute at least 15% of the capital, with the rest being mobilized from various sources, underscoring a collaborative financial approach.
Investors and Development Goals
A prominent player in this initiative is the Vietnam-Singapore Industrial Park (VSIP), a joint venture between Becamex IDC and Singapore’s Sembcorp. They’ve submitted documents to gain permission to spearhead the development of La Son Industrial Park. During a recent meeting, Hue’s Chairman Nguyen Khac Toan expressed interest in VSIP’s proposal, which aims to create a complex guided by principles of sustainability, modern infrastructure, and digital management.
VSIP envisions a site that fosters high-value industries such as clean technology manufacturing, electronics, and logistics, effectively aligning with global shifts in supply chains.
Strategic Importance for Hue
The La Son Industrial Park represents a cornerstone of VSIP’s expansion strategy across central Vietnam. By establishing this park, Hue aims to position itself as an attractive destination for industrial investment and production-support services.
Hue is notable for being one of six centrally governed cities in Vietnam, joining the ranks of major urban centers like Hanoi and Ho Chi Minh City. This strategic position offers promising advantages for investors and businesses looking to capitalize on Vietnam’s growing industrial landscape.
Broader Development Ventures
Moreover, VSIP is not limiting its sights to Hue alone. Plans are in place for a large-scale urban-industrial development called the Moc Bai Xuyen A complex, situated in the southern region of Vietnam. This project aims to connect directly with the Moc Bai border gate economic zone, positioning it as a future hub for digital technology and clean energy investments, adhering to carbon-neutral standards.
With substantial plans unfolding in multiple provinces, including interest in the coastal region of Khanh Hoa, the trajectory for industrial parks in Vietnam appears promising. Khanh Hoa, famed for its resorts and strategic location, is becoming increasingly attractive for industrial and service-urban investments.
VSIP’s Record of Success
Since its inception in 1996, VSIP has developed its first industrial park in Binh Duong. Today, their portfolio boasts 20 industrial parks spanning a combined area of over 12,000 hectares across the country. This robust growth reflects VSIP’s efficacy and adaptability in the ever-changing landscape of industrial development.
In terms of financial performance, VSIP reported a net profit of nearly VND1.13 trillion ($42.7 million) in the first half of 2025, indicating a year-on-year increase of 3.4%. In previous years, their profits have steadily risen, demonstrating a strong resilience and capacity for growth in a competitive market.
Conclusion
As Hue embarks on this exciting journey with the La Son Industrial Park, it sets a clear signal that the region is ready to embrace a future steeped in innovation, sustainability, and economic vitality. The collaboration with forward-thinking partners like VSIP suggests that Hue is not just aiming for growth – it’s positioning itself as a vital player in the industrial arena of Vietnam.
This article encapsulates the multifaceted aspects of the La Son Industrial Park project, presenting a hopeful outlook on Hue’s economic future while detailing the intricate plans that pave the way.