Hung Yen province, strategically located adjacent to Hanoi, is poised to undergo a transformative economic shift with its ambitious plan to develop a large-scale free economic zone. With an estimated investment of VND463 trillion (approximately $17.6 billion), this initiative is part of a comprehensive strategy aimed at attracting high-tech industries and multinational supply chain players. This significant investment signals a strong commitment to economic growth and modernization in the region.
The provincial Party Committee has taken a proactive approach by agreeing to submit the development plan to the Politburo, Vietnam’s highest decision-making body, for consideration. This step underscores the importance of the project in the broader context of the nation’s economic strategy and its potential impact on local and national levels.
According to the proposal, the initial coverage of the economic zone is expected to span around 30,583 hectares. Alongside this, authorities are exploring a westward expansion of approximately 13,000 hectares and the reclamation of around 17,000 hectares of coastal land to the east. This strategic expansion aims to create a comprehensive development area divided into three functional zones, allowing for optimized utilization and effective management of resources.
A view of the central of Hung Yen province, northern Vietnam. Photo courtesy of Dan Tri (Intellect) newspaper.
The proposed project is envisioned as a multi-sector economic hub, focusing on high-tech manufacturing, applied research, new energy industries, and advanced logistics services. Comprehensive infrastructure developments including seaports, airports, and resort urban complexes are planned to support international business operations, making the zone an attractive destination for foreign investment.
Hung Yen province, which was formed last July through the merger of existing areas, shares borders with important provinces and cities, including Bac Ninh, Ninh Binh, Hanoi, Hai Phong, and the East Sea. This strategic location enhances its potential as a logistical and economic hub, connecting it to key markets and resources.
Vice Chairman of Hung Yen, Le Quang Hoa, highlighted that the zone aims to pull in large multinational corporations engaged in global supply chains. The establishment of this economic zone is not just about attracting businesses but is also intended to create a new growth frontier for the province. This vision reflects a broader ambition to elevate Hung Yen’s economic standing within both regional and international contexts.
To facilitate this ambitious plan, the province has put forward 12 groups of policies featuring 31 special mechanisms designed to attract investment. Notably, this policy package includes 18 of the most favorable investment measures currently available in Vietnam, supplemented by 13 new initiatives crafted to meet international standards.
In an innovative approach, the proposed framework intentionally minimizes reliance on tax breaks, focusing instead on enhancing the overall investment climate. The design of these policies is built around four core principles: reducing dependence on tax and fee incentives, fostering a streamlined and investor-friendly business environment, ensuring international competitiveness, and tailoring policy tools to suit the operational needs of global companies.
The total capital required for the project is expected to be around VND463 trillion ($17.6 billion) over three distinct phases spanning from 2025 to 2050. The first phase, planned from 2025 to 2030, emphasizes the planning and construction of essential infrastructure alongside pilot implementations of the special mechanisms outlined in the proposal. This foundational stage is crucial for setting the groundwork for future developments.
Moving into the second phase, from 2030 to 2040, authorities aim to expedite the attraction of strategic investors and expand the industrial footprint of the zone. This period will be critical for establishing the zone as a competitive player on the global stage. The final phase, spanning 2040 to 2050, is focused on completing the broader economic ecosystem, positioning the zone as a globally competitive free economic hub.
According to the province’s Party chief, Nguyen Huu Nghia, this initiative is anticipated to become a significant catalyst for long-term growth in Hung Yen. By bringing in high-quality investments and advanced industries, the project could greatly enhance productivity and transform Hung Yen into a modern industrial center. Additionally, it may play a vital role in bolstering the province’s contributions to emerging maritime and energy sectors.
As of January, Hung Yen had attracted 932 foreign-invested projects amounting to $16.7 billion, demonstrating the province’s growing appeal to international investors. This budding economic landscape offers a promising glimpse of the potential that lies ahead as Hung Yen navigates its path toward becoming a leading economic center in northern Vietnam.