Thai Binh Industry – The Desire for Rapid and Comprehensive Development

In recent years, Thai Binh has transformed from a province primarily focused on agricultural production into a dynamic and rapidly developing area, becoming an attractive destination for investors.

Currently, the province boasts 10 industrial parks and 49 industrial clusters, covering nearly 3,000 hectares, all of which have been cleared and equipped with infrastructure to welcome investors.

As of the end of August 2024, the province’s total investment capital reached over VND 21,600 billion, 1.6 times higher than the same period last year. This impressive figure is a clear testament to its strong transformation and potential of a promising bright spot in the national economy.

1. Location and regional connectivity

Thai Binh is a coastal province located in the Red River Delta, positioned within the economic growth triangle of Hanoi – Hai Phong – Quang Ninh. The province features a 52 km coastline and five major estuaries, which unlock significant potential, especially in developing the maritime economy.

The province has three side border rivers and one side borders the sea, which was once likened to an “isolated island” due to its limited transportation connections with neighboring provinces. However, over the past few years, Thai Binh has overcome these initial challenges and invested heavily in infrastructure to attract investors.

• In development plan, three expressways are being constructed within the province: the Ninh Binh – Hai Phong Expressway (CT.08), the Hanoi Ring Road 5 (CT.39), and the CT.16 route, which connects the Thai Binh Economic Zone, Tra Giang Urban Area, and Thai Binh City to the Hanoi Ring Road 5 and the southern economic zone of Hanoi capital.

• The national highways (10, 37, 37B, 39, and 39B) are being developed in alignment with the Road Network Plan for 2021-2030, with a vision to 2050, as approved by the Prime Minister.
• Thai Binh has identified five key provincial roads as an important pillar of provincial development (DT.467; DT.468; DT.454; DT.469; DT.464). These serve as the link of Thai Binh City with the province’s critical gateways. There are also nine newly planned routes for intra-provincial connections and 15 routes slated for upgrades and improvements.
• Notably, the completion of the coastal road will significantly reduce the distance and travel time from Thai Binh’s coastal areas to the deep-water seaports of Dinh Vu and Lach Huyen, as well as to Cat Bi International Airport (Hai Phong), Van Don Airport, Mong Cai Border Gate (Quang Ninh), and other provinces and cities in the Northern coastal region.

2. Labor Force

An ample labor force is one of the province’s major advantages. The province ranks 11th nationwide in population size, with nearly 2 million residents and a working-age labor force of about 1.2 million people. Over 75% of the workforce has received formal training.

In response to the rapid socio-economic growth, particularly within the industrial sector, the provincial government is prioritizing vocational training, with a strong emphasis on high-skill fields.

In May 2023, the People’s Committee of Thai Binh approved a project to enhance vocational training to meet the demand for a high-quality workforce. This move is to  support the province’s socio-economic development through 2025, with an orientation toward 2030. The project aims to develop a modern, open, flexible, interconnected, high-quality, and efficient vocational education system.

3. Thai Binh Economic Zone

The Thai Binh Economic Zone (EZ) was established in 2017 with a total area of 30,583 hectares. It has been identified as a key economic zone, serving as a driving force for local socio-economic development and a prime area for investment incentives. 

Investment projects in the Thai Binh EZ enjoy the highest level of incentives by the government, along with special local benefits. Notably, secondary investment projects are eligible for a corporate income tax rate of 10% for 15 years, a 4-year exemption from corporate income tax, followed by a 50% reduction for the next 9 years. Additionally, they receive exemptions for 5 years on import duties for goods used to create fixed assets and for raw materials, supplies, and components that are not yet produced domestically.

In addition, Thai Binh province offers specific support, such as vocational training subsidies of up to VND 5 million per worker, and support in administrative procedures to facilitate investment.

The Thai Binh EZ is currently home to Thai Binh Power Center featuring two thermal power plants.  These plants have a total capacity of 1,800 MW, generating approximately 10.8 billion kWh per year. Other key developments include an offshore gas supply project producing 200 million cubic meters of gas annually, an Ammonium Nitrate manufacturing plant, an Ammonia plant, and the Diem Dien Port, among others. These energy supplies are a unique advantage that few economic zones can offer.

Since its establishment, the EZ has attracted three industrial park projects: the infrastructure development projects for Lien Ha Thai IP, Hai Long IP, and VSIP Thai Binh IP.

4. Proactive Approach to Promotion of FDI Investment

On October 12, 2023, a delegation from Thai Binh province participated in the Investment Promotion Conference for Thai Binh, organized by the Vietnamese Embassy in the UK and Thai Binh province in London. During the conference, the Secretary of the Thai Binh Provincial Party Committee pledged that the province would create the most favorable conditions for businesses to invest, expand their production and achieve long-term, effective business growth.

Since the beginning of 2024, Thai Binh’s active approach to investment promotion can be seen more clearly, with provincial delegations frequently organizing investment promotion activities abroad. These include business trips to several European countries such as Germany, Switzerland, Hungary, the Netherlands, France, and Belgium; an investment promotion trip to Shenzhen, China; and representatives from the Management Board of the Economic Zones and Industrial Parks of Thai Binh participating in trade and investment promotion conferences in Hai Long Industrial Park in China.

These efforts by local authorities demonstrate their strong commitment to attracting foreign investment and creating the best possible investment environment for international investors.

Above RSL Group has provided readers with information about the investment potential of Thai Binh province. If you have any questions, please contact our hotline immediately for answers. See more articles here.

Source: Redsunland