Vietnam’s 4 Key Economic Regions

Vietnam has a total of 735 industrial parks (IPs), which are scattered in all 63 provinces and municipalities. To promote balanced and sustainable economic development, Vietnam has established 4 key economic regions (KERs) that act as the industrial, commercial, and manufacturing hubs of the country.

Each region leverages its unique strengths and resources to drive economic progress by promoting regional specialisation, facilitating targeted infrastructure development, attracting foreign direct investment, and enhancing competitiveness. Decision no. 128/NQ-CP specifies the focused industries for each KER and responsibilities of different government agencies in promoting the development of the KERs. 482 (or 66%) of the country’s IPs are located within these KERs.

Vietnam’s Northern Key Economic Region (NKER)

The NKER consists of Hanoi, Bac Ninh, Hung Yen, Vinh Phuc, Hai Duong, Hai Phong, and Quang Ninh, focusing on building high-quality human resource training centers; developing high-tech industries, high-tech services; banking, finance; intensive health; and supporting industries. 146 (or 57%) out of 258 IPs in the northern area of Vietnam are located in the NKER.

The region boasts well-developed infrastructure, including highways, railways, ports, and airports, notably the Noi Bai International Airport in Hanoi, the Hai Phong Port, and the Hanoi-Hai Phong Expressway. NKER forms the corridor for the economic development of the wider Red River Delta area.

Vietnam’s Central Key Economic Region (CKER)

The CKER includes Da Nang, Thue Thien Hue, Quang Nam, Quang Ngai, and focuses on focuses on tourism, automobile production and assembly, petrochemical, defense, and seaport services industries. The CKER has the strategical position to connect Vietnam’s Northern and Southern areas, as well as provide international maritime transportation access to the Central Highlands, Myanmar, Laos, and Cambodia.

Vietnam’s Southern Key Economic Region (SKER)

Ho Chi Minh City, Dong Nai, Binh Duong, Ba Ria-Vung Tau, Tay Ninh, Binh Phuoc, Long An, and Tien Giang form the SKER. The SKER focuses on the production and assembly of electrical and electronic products, manufacturing industry, digital economy, banking and finance, and real estate. 248 (or 78%) of 317 IPs in the South are located in the SKER.

The SKER boasts significant port infrastructure, including the deep-water port Cai Mep Port in Ba Ria-Vung Tau, Sai Gon Port in Ho Chi Minh City, and other regional ports. The region also has well-developed transportation networks, including highways and railways.

Vietnam’s Mekong Delta Key Economic Region (MDKER)

The Mekong Delta Key Economic Region includes An Giang, Kien Giang, Can Tho, and Ca Mau. This KER focuses on modern, large-scale, high efficiency agricultural production, processing industry, preservation of agricultural products, and fisheries. The MDKER also plays an important role in biotech transfer, providing plant varieties, technical services, processing and exporting agricultural products to the whole Mekong Delta.

Examples of some major foreign manufacturers in Vietnam:

Electronics & Technology

Samsung Electronics has a mobile R&D center in Hanoi and 2 factories in Bac Ninh and Thai Nguyen provinces.
Foxconn has 6 factories in Bac Ninh, Bac Giang, and Quang Ninh province. Foxconn is planning to further expand its manufacturing capacity with a USD 383 million factory Bac Ninh province and USD 550 million in two projects in Quang Ninh province.
Canon has 3 factories in Hanoi and Bac Ninh province.

Intel has its assembly and test facility in Ho Chi Minh City.
LG’s LG Display, LT Innotek, and LG Electronics are all located in Ha Phong. LG also has an R&D center in Hanoi.
Panasonic has various factories in Hanoi, Hung Yen, and Binh Duong

Automobile

Toyota Motor Vietnam has its assembly facility in Vinh Phuc province.
Honda Vietnam’s assembly plant is in Vinh Phuc province.
Ford has an assembly plant in Hai Duong province.

Consumer goods

Unilever’s manufacturing facilities are in Ho Chi Minh City and Bac Ninh province.
Acecook has 10 factories in Vietnam, located in different provinces in all 3 regions, including Bac Ninh, Hung Yen, Da Nang, Ho Chi Minh City, Binh Duong, and Vinh Long.
P&G has 3 large-scale manufacturing facilities in Binh Duong province.
Nestle has 6 factories in Hung Yen and Dong Nai provinces.
Coca Cola has invested in 4 factories in Vietnam, located in Hanoi, Ho Chi Minh City, Da Nang, and Long An.

Textile, garment, footwear

Crystal International Group Limited has factories in Hanoi, Hai Duong, Phu Tho, Bac Giang.
Regina Miracle has 5 factories in Hai Phong province.

Others

LEGO’s newest production facility in Binh Duong province started production in 2024.
In addition to the factory in Hanoi, TOTO’s new factory in Vinh Phuc province starts operation in 2024.

Frequently Asked Questions about Vietnam’s manufacturing hubs

What is the main manufacturing industry in Vietnam?

Vietnam’s manufacturing sector is diverse and robust. Some of the main manufacturing industries are electronics and technology, food processing, machinery and equipment, automotive, textile and garment, footwear, furniture, etc.

What are the biggest manufacturing provinces of Vietnam?

By number of IPs, the top 10 manufacturing locations of Vietnam are Long An (63 IPs), Dong Nai (49 IPs), Binh Duong (44 IPs), Ho Chi Minh City (35 IPs), Bac Ninh (25 IPs), Hai Duong (23 IPs), Vinh Phuc (23 IPs), Bac Giang (22 IPs), Hanoi (21 IPs), Hai Phong (21 IPs).

What are the problems with manufacturing in Vietnam?

Manufacturing in Vietnam faces several challenges, including:
Supply chain disruptions: Vietnam’s manufacturing sector is heavily dependent on imports for raw materials, making it vulnerable to global supply chain disruptions.

Technological advancements: Keeping up with rapid technological advancements is a challenge for many manufacturers in Vietnam. There is a need for continuous investment in technology and skills development to remain competitive.

Environmental concerns: Environmental issues, such as pollution and resource depletion, are growing concerns in Vietnam’s manufacturing sector.

Labor shortage: While Vietnam has a large labor force, there are still shortages of skilled workers.

Infrastructure limitations: Despite improvements, Vietnam’s infrastructure still faces limitations, including transportation bottlenecks and power shortages, which can hinder manufacturing operations.

Interested to learn more about the Vietnam market for your business?

Here at GLOBAL ANGLE, we are able to conduct market research in Vietnam. Our local Vietnamese partner, team members, and local researchers are based in the country for on-the ground and comprehensive market research and business consulting services. We can conduct detailed research on Vietnam’s Key Economic Regions according to your needs.