Ha Nam: A Rising Investment Destination in Northern Vietnam

Ha Nam province is emerging as one of Northern Vietnam’s most promising locations for foreign direct investment (FDI). Situated just south of Hanoi in the Red River Delta, this small but strategically positioned province is drawing significant capital investment thanks to its modern infrastructure, competitive workforce, and investor-friendly policies. With ambitious development goals, Ha Nam is positioning itself as a key player in Vietnam’s rapidly expanding economy.?

Snapshot of Ha Nam Province

Location & Demographics Ha Nam is located just 60 kilometers south of Hanoi, connected by key highways and expressways, making it easily accessible from the nation’s capital. The province covers an area of 852.2 km2 and has a population of 852,800 people. With proximity to both Noi Bai International Airport and Haiphong International Seaport, Ha Nam offers convenient logistics options for businesses looking to set up operations.

Economic Growth In the first half of 2024, Ha Nam reported a Gross Regional Domestic Product (GRDP) of VND 26,891 billion, reflecting a 10.35% increase from the same period in 2023. The province’s focus on industrialization, coupled with ongoing infrastructure projects, continues to drive strong economic performance, creating a fertile environment for investment.

A Growing FDI Hub

Leading FDI Projects Ha Nam is becoming a magnet for international investors, particularly from Japan, South Korea, and Taiwan. As of mid-2024, the province has attracted 604 investment projects, including 356 FDI projects worth nearly $6.18 billion. Major investments include:

• Honda’s $120 million factory in Japan.
• Seoul Semiconductor Vina’s $300 million LED manufacturing facility from South Korea.
• Qisda Corporation’s $263 million LCD factory from Taiwan.
• Wistron Corporation’s $274 million high-tech electronics facility from Taiwan.

Priority Sectors for Investment Ha Nam has strategically positioned itself as a hotspot for several key industries, including:

• Electronics and MedTech: With investments from global tech players, Ha Nam is solidifying its role as a major production base for high-tech industries.
• Supporting industries and manufacturing: The province’s robust industrial infrastructure supports the growth of manufacturing sectors, especially in automotive components and machinery.
• High-tech agriculture: Ha Nam is also a key area for agricultural innovation, focusing on the cultivation of high-value crops using modern techniques.

Investment Incentives: A Business-Friendly Environment

Ha Nam’s government has implemented a range of policies aimed at attracting FDI, including:

• Corporate income tax incentives: For high-tech projects, businesses can enjoy a 10% tax rate for 15 years, along with four years of tax exemption and a 50% tax reduction for the next nine years.
• Support for industrial zones: Investors in industrial parks benefit from a two-year tax exemption, followed by a 50% tax reduction for the subsequent four years.
• Administrative efficiency: Ha Nam has streamlined its administrative processes, making it easier and faster for businesses to establish operations in the province.

In addition to tax incentives, Ha Nam provides support for vocational training and labor recruitment, ensuring businesses have access to a skilled workforce.

Improved Provincial Competitiveness and Investment Attraction

Ha Nam has made significant strides in improving its business environment. In 2023, the province’s Provincial Competitiveness Index (PCI) improved notably:

• Scored 66.47 points, a 2.47-point increase from 2022, ranking 36th out of 63 provinces and cities nationwide—jumping 10 places.
• Six key components improved, including Market Entry, Land Access, Time Cost, and Labor Training.
• Ha Nam placed in the top 30 for Incentive Policies and Support Services, scoring 7.10 points.

Investment Attraction in 2023 Ha Nam’s appeal as an investment destination continues to grow. In 2023, the province attracted:

• 100 projects with a total investment capital of VND 12,019 billion and over USD 739 million.
• As of 2024, Ha Nam is home to 2,202 investment projects, including 1,653 domestic and 549 FDI projects, with a total registered capital exceeding VND 325,000 billion and USD 7 billion.
• Six key components improved, including Market Entry, Land Access, Time Cost, and Labor Training.
• Ha Nam placed in the top 30 for Incentive Policies and Support Services, scoring 7.10 points.

These investments have significantly contributed to job creation, benefiting approximately 45,000 workers from Ha Nam and neighboring areas.

General Development Goals by 2030: Vision for Growth

Ha Nam has set ambitious goals for 2030, aiming to become a prosperous, civilized province with balanced development. The province’s focus will be on:

• High-tech industry: Prioritizing innovation and digital transformation.
• Clean agriculture: Enhancing sustainable agricultural practices.
• Cultural tourism: Leveraging historical and natural assets to attract tourism.
• Infrastructure and labor productivity: Investing in infrastructure projects to improve connectivity, while boosting labor skills and productivity.
• Environmental protection: Ensuring sustainable development and a clean economy.

Urban Planning by 2030: A Focus on Smart Growth

Ha Nam’s urban development strategy aims to create a modern, green, and smart environment:

• Phu Ly will be developed as a Type I urban area, while Duy Tien town will transition to city status.
• The province plans to create two Type IV urban areas in Binh Luc district and upgrade other urban areas to meet growing demands.
• Green and smart urban infrastructure will be a priority, focusing on sustainable city planning and modern amenities.

Vision to 2050: A Modern Urban Hub

By 2050, Ha Nam envisions becoming a centrally-run city and a key driver of economic growth in the Red River Delta. Its priorities include:

• Developing high-tech industries, education, healthcare, and tourism services.
• Becoming a smart, modern urban center with a green, clean economy.
• Focusing on sustainable development, balancing economic growth with ecological preservation.

This long-term vision positions Ha Nam as a major player in the region, with plans to become a logistics hub and a smart city, leveraging cutting-edge technology and infrastructure.

Infrastructure: The Backbone of Growth

Industrial Zones:

Ha Nam operates eight industrial parks and has several more under development. One significant project is the Dong Van V Industrial Park, where Deputy Prime Minister Tran Hong Ha approved the first phase of infrastructure construction and trade. With a total investment of $117 million, this project spans 237.29 hectares and is expected to attract high-tech and environmentally sustainable industries.

Transportation & Utilities:

The province has invested heavily in transportation projects that enhance connectivity. Ha Nam’s well-developed network of highways and expressways links it directly to Hanoi, Haiphong, and other key regions. Additionally, four major waterway corridors facilitate logistics operations.

Ha Nam also boasts reliable utilities, including 24/7 electrical supply, modern telecommunication networks, and wastewater treatment facilities, ensuring that businesses have the necessary infrastructure to operate smoothly.

The Future of Ha Nam: A Hub for High-Tech and Sustainable Development

Ha Nam is a province on the rise, combining a strategic location, a business-friendly environment, and a clear vision for the future. With its focus on high-tech industries, clean agriculture, and cultural tourism, Ha Nam is well-positioned to attract a diverse range of investors looking for growth opportunities in Vietnam.

Whether you are interested in high-tech manufacturing, sustainable agriculture, or real estate development, Ha Nam offers a fertile ground for business success. With a strong commitment to infrastructure, a skilled workforce, and competitive investment incentives, this province is ready to play a leading role in Vietnam’s economic future.

Are you ready to invest in Ha Nam? Reach out to us today to explore opportunities and receive expert guidance on establishing your business in this dynamic and rapidly growing province.