Understanding Vietnam’s regional and provincial economy

Vietnam’s 63 provinces and cities are divided into 6 areas that vary significantly in economic development, industries, and average income, each contributing differently to the country’s overall economic growth.

Quick facts about the economical zones in Vietnam

Vietnam 63 provinces and cities are divided into 6 areas:

Southeast

Red River Delta

Northern Central area and Central coastal area

Mekong River Delta

Northern midlands and mountain areas

Central Highlands

Ho Chi Minh City and Hanoi are the country’s economic hubs

According to the latest data from Vietnam’s General Statistics Office, the Southeast and Red River Delta regions contribute nearly 2/3 of Vietnam’s GDP.

GRDP & GRDP per capita by province

As the country’s economic hubs, Ho Chi Minh City and Hanoi lead in GRDP, reaching 64.4 and 51.4 billion USD in 2022. The remaining top ten GRDP provinces are Binh Duong, Ba Ria–Vung Tau, Dong Nai, Hai Phong, Quang Ninh, Thanh Hoa, Bac Ninh, and Nghe An.

In terms of GRDP per capita, Ba Ria-Vung Tau is by far the leading province at USD 15,370 per capita in 2022. Ho Chi Minh City and Hanoi, while leading in GRDP, are only in 6^th and 7^th place for GRDP per capita.

Notable cities/provinces in Vietnam

Northern Vietnam

The Northern region including the Red River Delta, and the Northern Central and the Central Coastal area

Hanoi is the capital and hosts sectors like finance, technology, and government services.
Quang Ninh is known for coal mining and tourism. Investments in industrial zones have diversified the economy.
Hai Phong is a major port city with strong manufacturing and shipping sectors.
Bac Ninh is a rapidly growing industrial province, known for electronics manufacturing.

Central Vietnam

The Central region includes the Northern midlands and mountain areas, and the Central Highlands.

Da Nang is a growing hub for tourism, technology, and logistics activities.
Thua Thien Hue is known for cultural tourism.
Quang Ngai is emerging as an oil and gas processing center with the Dung Quat Refinery, but agriculture remains vital.
Lam Dong is a hub for highland agriculture and eco-tourism.
Dak Lak has dominant agricultural activities, particularly coffee production.

Southern Vietnam

The Southern region includes the Southeast area and the Mekong River Delta area.

Ho Chi Minh City has the most dynamic economy in Vietnam. It is a major center for manufacturing, trade, and services, attracting significant foreign investment.
Dong Nai is an industrial powerhouse with many manufacturing companies and export-oriented industries.
Binh Duong is another major industrial province, known for large-scale manufacturing and FDI.
Ba Ria-Vung Tau is a hub for international maritime transportation, petroleum, and petrochemicals.
Can Tho is the economic center of the Mekong Delta with an economy based on agriculture, aquaculture, and, increasingly, tourism.

Frequently Asked Questions about Vietnam’s economy

Which provinces and cities in Vietnam have the highest economic growth?

In the 1^st half of 2024, Vietnam has 7 cities and provinces that achieved double GRDP growth: Bac Giang (14.14%), Khanh Hoa (12.73%), Thanh Hoa (11.5%), Ha Nam (10.35%), Hai Phong (10.32%), Tra Vinh (10.27%), Hai Duong (10.00%). Ho Chi Minh City and Hanoi’s GRDP growth were respectively 6.46% and 6% for this period.

Which provinces have the highest Provincial Competitiveness Index (PCI)?

The PCI measures economic governance areas, such as entry costs, access to land, transparency, etc., that affect the business development of the private sector. The top-ranking provinces in 2023 are Quang Ninh, Long An, Hai Phong, Bac Giang, Dong Thap, Ba Ria-Vung Tau, Ben Tre, Thua Thien Hue, Hau Giang, and Phu Tho.

How do provincial governments support economic development?

Provincial governments implement central policies, invest in infrastructure, and provide incentives to attract foreign investment. They also focus on administrative reforms to improve the business environment.