The North of Vietnam can become a helpful assistant of the world factory. Why?

Possessing many potentials and special advantages, the North of Vietnam is capable of becoming a helpful assistant of the world's factory and a global center for the production of electronic components.

Road network covers the whole territory

According to the statistics of Cushman & Wakefield, receiving the priority of infrastructure development of the local government, the North currently has 13 highways connecting the Northern provinces with the Capital, with a total length of 895.8km. They are Noi Bai - Lao Cai expressway (264km), Hanoi - Bac Giang expressway (45.8km), Bac Giang - Lang Son expressway (64km), Noi Bai - Bac Ninh expressway (31km) ), Hanoi - Thai Nguyen expressway (63km), Phap Van - Cau Gie expressway (30km), Cau Gie - Ninh Binh expressway (50km), Cao Bo - Mai Son expressway (15km), Mai Son - National Highway 45 expressway (63km), Hanoi - Hai Phong expressway (105km), Hai Phong - Ha Long expressway (25km), Ha Long - Van Don expressway (60km) and especially Van Don - Mong Cai expressway (80km), connecting 3 border gates and leading to 3 most important international airports in the region.

Regarding railways, the North owns 6 railway lines, including Hanoi - Hai Phong (102km), Hanoi - Lao Cai (296km), Hanoi - Dong Dang (162km), Hanoi - Quan Trieu (75km), Kep - Luu Xa (57km) and Kep - Uong Bi - Ha Long (106km) and North - South axis (1,726km).?

The road network covering the whole territory acts as the main connection role for the transport network between industrial zones, airports, seas, border gates and important traffic hubs.?According to the road network planning in the period 2021-2030, it is expected that the North will have 14 expressways with a total length of about 2,300 km, with a scale of 4 to 6 lanes.

For the seaport system, the North is the region with the strongest increase of 154% from 2017 to 2021 in terms of transport exports compared to the rest of the regions.?According to the Vietnam Seaport Association, seaports in the North ecorded a total number of containers passing through the seaports of more than 2,000,000 TEUs with 3 main seaports: Quang Ninh, Dinh Vu and Hai Phong.?

In addition to traffic by road, railway and seaport systems, the Northern region also inland waterway transport infrastructure system on the Quang Ninh - Hai Phong - Viet Tri route through the Duong River (205.6 km);?Hai Phong - Ninh Binh route across the Luoc River (264 km);?Hanoi - Lach Giang route (194 km) and Cua Day - Ninh Binh route (72 km). This supports the transportation of traditional goods with large volume and low cost in order to reduce pressure on North-South road transport.

The area also has 7 passenger airports including Noi Bai, Van Don, Cat Bi, Tho Xuan, Vinh, Dien Bien and Dong Hoi. Noi Bai international airport is home to a specialized cargo terminal with a capacity of 403,000 tons of cargo/year, according to the Ministry of Transport.?The remaining airports are currently being invested in increasing their passenger capacity and opening direct flights to create favorable conditions for receiving passengers and investors to Vietnam.

The production potential of the domestic electronic technology industry is 'transforming'

Industrial parks in the North early received a wave of investment from global electronics enterprises such as Panasonic (1971), LG Display (1995), Canon (2001), Foxconn (2007), Samsung (2008), Fuji Xerox (2013) and more recently Pegatron, Goertek, Jinko Solar.?The fact that electronic technology manufacturers simultaneously landed in the region created a wave of attracting many auxiliary production businesses for these "giants".

Over the years, the market has witnessed many domestic enterprises deeply involved in the global supply chain in the field of processing and manufacturing such as Truong Hai, VinFast, Thanh Cong, etc.

Connecting the Southern Economic Corridor of China

Analyzing one more advantage of the North of Vietnam, Cushman & Wakefield pointed out that connecting the North of our country is the southern economic corridor of China, including a number of prominent regions such as Shanghai, Hong Kong, Shenzhen, Fujian and Guangdong.?This is the economic region chosen as the headquarters of the giants in the manufacturing, biochemistry, commerce and electronic technology industries.?According to estimates by Cushman & Wakefield, this region accounts for more than 30% of China's total GDP in 2021, playing an extremely important role in attracting investment capital and economic development.

In particular, the North owns road, water and railway system connecting directly to Shenzhen, known as China's Silicon Valley, creating favorable conditions for enterprises wishing to expand and distribute production in the region.?In addition, the industrial real estate market in the North has also been formed early and is quite diverse in types of properties to serve enterprises from China and Taiwan to expand factories.

According to the report of the third quarter of 2022 of Cushman & Wakefield, the total supply of industrial land in the North reached 13,600 hectares;?with average rental per square meter per rental cycle in Hanoi is 139 USD, Bac Ninh is 130 USD, Hai Phong is 121 USD, Vinh Phuc is 113 USD, Hung Yen is 112 USD, Hai Duong is 98 USD and Quang Ninh is 90 USD.

The market of ready-built factories and ready-built warehouses has also received a significant amount of investment as domestic investors have begun to participate in the development of modern factories with the ability to supply of high-quality products at competitive prices.?The total supply of ready-built factories in the North reached 2.5 million m2 with rental of 3.5 - 5.7 USD/m2/month and ready-built warehouse of 1.8 million m2 with rental of 3.5 - 5.6 USD/m2/month.

Ms. Trang Bui, Director of Cushman & Wakefield commented that nowadays, the manufacturing industry is looking to reallocate the supply chain to avoid dependence on one country. Along with favorable conditions and attractive investment policies, the North of Vietnam is fully capable of becoming a helpful assistant of the world factory and a global center for the production of electronic components,

Source: batdongsancongnghiep.vn