Opening production in Vietnam

 26.06.2024

Strengths and weaknesses of the location of production in Vietnam, depending on the region.
 

Opening of production in Vietnam - Northern part of the country

Hanoi, Vinh Phuc, Hung Yen, Bac Ninh, Quang Nam, Hai Phong, and Hai Duong provinces.

Setting up a production in Vietnam

In the north, the capital - Hanoi city, and neighboring provinces are the center of attraction and are popular for manufacturing in Vietnam. The region's advantage is its proximity to China and the presence of a seaport at Hai Phong, the second-largest port in the country. The head offices of the world's banks, represented in Vietnam, are also located in Hanoi.

The main production is concentrated in the areas of electronics, automotive, consumer goods, and information technology. The first industrial parks for IT developers appeared only in the Hanoi region. The capital and metropolitan area attract workers from all nearby provinces and offer a choice of more qualified personnel. However, labor costs are also relatively high in the metropolitan area due to the higher standard of living.

The road infrastructure is more developed. For those who need raw materials from China, it is very convenient to get them by trucks in the northern part of the country.

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Starting a production in Vietnam

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Relocation of production in Vietnam - Central part 

Da Nang, Hue, Quang Nam, Quang Ngai, Binh Dinh.
 

Manufacturing in Vietnam

In the central part is the third largest city in Vietnam - Da Nang. The city is popular with English-speaking ex-pats for its convenient infrastructure and pristine beaches. This region is an inexpensive destination as the north and south are saturated with investment, which leads to increased costs due to congestion in supply networks.

The amount of land for organizing production increases every year as they attract more investment, especially from IT companies. In this region, it is convenient to locate enterprises that are engaged in the processing of agricultural products due to the proximity to the main agricultural lands of Vietnam - the Tai Nguyen plateau.

The workforce in the region is young and dynamic, with a higher level of skilled workers.

However, the central region is also characterized by less dynamic development of transport infrastructure. When locating production in this part of the country, it is necessary to carefully consider options for the delivery of raw materials and export of products.

 

Strating processing industry in Vietnam - Southern part

Ho Chi Minh city, Binh Duong, Long An, Tai Ninh, Tien Dang, Bin Phuc, Dong Nai, Ba Ria Vung Tau.

Processing industry in Vietnam

Ho Chi Minh City is the largest city in the country in terms of population and the most diverse in ethnic composition. It is an economic center with a thriving middle class and growing consumption. The working population is approximately 10.6 million people. This is the largest part of Vietnam with a high proportion of labor migrants from neighboring countries (Laos, Cambodia, and Thailand).

The workforce is concentrated in large cities and industrial clusters such as Ho Chi Minh City, Binh Duong, and Dong Nai. You will be able to find cool IT professionals for your business, and hospitality workers who have significantly improved their professional skills over the past decade. Competition for labor and talent is high among employers, while staff turnover, especially during and immediately after the initial hiring process, can cause delays for companies seeking to start production.

Logistics is very developed, Ho Chi Minh Port is the largest port in Vietnam.

 

Summing up, I want to remind you that each company and enterprise should carefully study the strengths and weaknesses of a particular province and area precisely for their goals and objectives.

However, for any option, you will need administrative and legal support, which company LEADERSHIP TSC will provide professionally and efficiently. We will make a comprehensive analysis of the feasibility of your project at the initial stage, help to determine the most effective form of ownership, carry out all the necessary measures to agree on a long-term lease agreement, and obtain project permits as soon as possible with full, understandable information.

 

Contact us now and get and get a ready-made proposal for launching production in Vietnam.

 

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