Understanding why Bac Ninh leads Vietnam in FDI goes beyond statistics. It’s the story of a region with a rich cultural legacy that continues to evolve and assert its position through constant innovation. With the rapid rise of modern industrial zones, Bac Ninh is transforming into a “golden rendezvous” for global investors. In this article, KTG Industrial provides a comprehensive perspective on the impressive landscape of foreign investment in Bac Ninh.
Overview of Bac Ninh’s industrial real estate market in 2025
Bac Ninh continues to solidify its leading position in attracting foreign direct investment (FDI) in Vietnam, with hundreds of FDI enterprises investing aggressively and registering capital amounting to billions of USD.
In 2024 alone, the province granted licenses for 359 new FDI projects with a total registered capital of nearly USD 1.8 billion, while adjusting the capital of 174 existing projects—bringing the total foreign investment in Bac Ninh to over USD 4.8 billion [1]. This solidifies Bac Ninh’s status as a premier investment destination in the region and demonstrates the province’s enduring appeal in the industrial sector.
While electronics manufacturing remains the province’s dominant industry, Bac Ninh is proactively diversifying into a wider range of industrial sectors with a focus on green and sustainable development. In particular, the province is promoting the growth of green factories aimed at minimizing environmental impact and advancing toward the Net Zero emissions goal.
In parallel, Bac Ninh is strengthening its supporting industries and encouraging environmentally friendly manufacturing operations that rely on renewable energy sources. These policies not only reinforce Bac Ninh’s role as a hub for modern industry but also lay a solid foundation for long-term, sustainable economic growth.
Why Is Bac Ninh among the top FDI destinations?
Developed industrial infrastructure
Bac Ninh boasts a well-developed and synchronized industrial infrastructure, with more than 15 major industrial parks offering ready-to-use land that meets investor requirements. Notably, parks such as VSIP, Yen Phong, and Que Vo are strategically located with convenient access to Hanoi, Noi Bai International Airport, and Hai Phong Port.
In addition, the province has made significant investments in essential utilities, including electricity, water supply, wastewater treatment, and internal transportation systems. This modern infrastructure enables FDI enterprises to launch projects swiftly while optimizing operational costs.
Save logistics costs with Bac Ninh’s strategic location
Beyond its robust infrastructure, Bac Ninh benefits from a prime geographic position at the northeastern gateway of Hanoi. This location allows businesses to easily connect with major economic hubs such as Hanoi, Hai Phong, and Quang Ninh.
The short distance to Noi Bai International Airport and nearby seaports further reduces logistics time and costs—offering a critical advantage for manufacturing and export-oriented enterprises.
Map of Bac Ninh province and surrounding areas
Abundant labor supply
Bac Ninh stands out for its abundant and youthful labor force. Labor costs in the province remain competitive, meeting the needs of a wide range of manufacturing industries.
In addition, Bac Ninh borders Hanoi—a major educational hub home to leading technical universities such as Hanoi University of Science and Technology and Hanoi University of Industry. This proximity allows businesses to access a high-quality technical workforce with ease. As a result, Bac Ninh holds a clear advantage in attracting high-tech industries.
Large workforce concentrated in Bac Ninh
Favorable investment environment
Bac Ninh’s government is widely recognized for its investor-friendly approach, consistently working alongside businesses by streamlining administrative procedures and reducing the time required for investment approvals. The province has effectively implemented the “4 Readiness” model, which includes ready land, a high-quality labor force, preferential policies, and active support in resolving challenges. These efforts give investors the confidence to move forward with their projects.
Notably, Bac Ninh holds monthly meetings with enterprises to listen to feedback and promptly address obstacles. As a result of these proactive efforts, the province attracted over USD 4.8 billion in FDI in 2024, marking a 2.9-fold increase compared to the same period in 2023 [2].
The entry of major corporations
Bac Ninh has also attracted the presence of major multinational corporations such as Samsung, Canon, and Foxconn. The arrival of these industry giants has fostered a dynamic ecosystem of supporting businesses, drawing in a wide network of suppliers, partners, and subcontractors. This clustering effect has enabled the formation of integrated supply chains, helping new FDI enterprises reduce both costs and lead times.
At the same time, this wave of investment has significantly increased demand for internationally standardized factories. Industrial real estate developers like KTG Industrial have responded by rapidly developing modern facilities equipped with smart technologies and certified green features such as LEED accreditation. As a result, Bac Ninh is not only attracting more FDI but also elevating the overall quality of industrial infrastructure in the region.
Why are FDI enterprises ideal tenants for industrial facilities?
Strong financial capacity and long-term leasing commitment
FDI enterprises typically have stable financial foundations and operate on a large production scale. As such, they tend to lease spacious facilities for long-term use. These companies often sign multi-year lease contracts to ensure uninterrupted production, providing industrial park developers with predictable cash flow and reducing vacancy risk.
High standards that elevate project quality
FDI tenants generally demand facilities that meet higher-than-average standards, including advanced fire safety systems, wastewater treatment, internal road networks, and integrated logistics spaces. This compels industrial park developers to upgrade their infrastructure to meet these expectations, ultimately increasing the value of the real estate and enhancing the overall image of the park.
KTG Industrial Yen Phong 1 industrial park in Bac Ninh is modern and compliant with international standards
Boosting credibility and attractiveness of industrial parks
The presence of FDI enterprises, particularly multinational corporations, serves as a strong endorsement for any industrial park. When a major global brand chooses to lease facilities in a park, it creates a ripple effect that draws in additional investors, who place greater trust in a professional and efficient operating environment. For instance, the operations of Samsung, Canon, and Foxconn in Bac Ninh have significantly boosted the region’s appeal and attracted hundreds of ancillary industrial suppliers.
What benefits do businesses gain from leasing facilities in Bac Ninh?
FDI enterprises that lease space in Bac Ninh enjoy a wide range of advantages. First, the province offers a young, abundant, and cost-effective workforce, with easy access to high-quality technical talent from nearby major universities. Additionally, Bac Ninh’s government is known for its pro-investor stance, actively supporting enterprises through streamlined administrative procedures, faster licensing processes, and regular business engagement forums.
On the tax policy front, companies leasing facilities in Bac Ninh’s industrial parks benefit from clearly defined and favorable corporate income tax incentives. Specifically, new investment projects may qualify for a full tax exemption for the first 2 years, followed by a 50% reduction in corporate income tax for the next 4 years [3].
In cases where an industrial park spans both preferential and non-preferential zones, the applicable tax incentives are determined based on the area with the larger land share. This policy helps businesses optimize costs, especially during the initial phase of production. As a result, Bac Ninh stands out as a prime destination for foreign investors seeking an efficient and cost-effective operational environment.
Conclusion
Bac Ninh is not only strategically positioned within the Northern Key Economic Triangle but also leads the way in building a business-friendly and efficient investment environment for FDI enterprises. From its well-developed infrastructure and abundant labor pool to transparent and clearly defined incentive policies, the province has cultivated a highly attractive ecosystem for foreign investors in Vietnam. With its current growth momentum, Bac Ninh is poised not only to maintain its status as the FDI capital of the country but also to play a leading role in driving the global supply chain shift in the years ahead.
References
[1] Nhu Loan (2024). Trien vong thi truong bat dong san cong nghiep Bac Ninh nam 2025. Bao Dau tu. Retrieved May 28, 2025 from https://baodautu.vn/batdongsan/trien-vong-thi-truong-bat-dong-san-cong-nghiep-bac-ninh-nam-2025-d231829.html
[2] Cong thong tin dien tu tinh Bac Ninh (2024). FDI dat muc ky luc trong vong 1 thap ky va chien luoc “Hai it – Ba cao – Bon san sang – Mot khong” cua Bac Ninh. Retrieved May 28, 2025 from https://bacninh.gov.vn/news/-/details/20182/fdi-at-muc-ky-luc-trong-vong-1-thap-ky-va-chien-luoc-hai-it-ba-cao-bon-san-sang-mot-khong-cua-bac-ninh-86247322
[3] Cong thong tin dien tu tinh Bac Ninh (2024). Doanh nghiep duoc huong loi tu uu dai thue Thu nhap doanh nghiep nhu the nao?. Retrieved May 28, 2025 from https://stc.bacninh.gov.vn/news/-/details/57416/doanh-nghiep-uoc-huong-loi-tu-uu-ai-thue-thu-nhap-doanh-nghiep-nhu-the-nao-
