Dong Nai emerges as southern Vietnam’s top investment draw
Dong Nai province has emerged as one of Vietnam’s top destinations for foreign investment, thanks to its proximity to Ho Chi Minh City and a network of industrial zones spanning over 10,200 hectares.
Industrial zones drive economic expansion
In 2021, foreign firms invested US$1.17 billion in Dong Nai’s industrial zones, contributing to a total of US$1.36 billion in foreign direct investment that year. An additional 7,573 hectares of new industrial zones are planned, primarily in Long Thanh, Cam My, Nhon Trach, and Trang Bom districts.
High demand has pushed occupancy rates to 80 percent. Rents in the Southern Key Economic Region increased by 9 percent year-on-year in early 2022. At about US$125 per square meter, Dong Nai’s land rent remains 60 percent lower than Ho Chi Minh City, attracting e-commerce and logistics companies.
Manufacturing leads the province’s foreign investment. Electronic components, textiles, and high-tech industrial goods are the main sectors, with major investors coming from South Korea, Japan, China, Singapore, and Thailand.
Infrastructure and policy support
The province’s location, 62 kilometers from Ho Chi Minh City’s Tan Son Nhat International Airport, provides a logistical edge. Five national highways and the North-South Railway run through Dong Nai, while the Ben Luc–Long Thanh and Dau Giay–Da Lat expressways under construction will enhance connectivity.
The Long Thanh International Airport, expected to open by 2025, will have an initial capacity of 25 million passengers and 1.2 million tonnes of cargo annually. The province aims to position it as a competitor to Singapore’s Changi and Thailand’s Suvarnabhumi, with surrounding developments including hotels, hospitals, and rail networks.
Seaports such as Long Binh Tan and Go Gau A and B handle over 3.5 million tonnes of cargo each year. The upcoming Phuoc An Port in Nhon Trach district will accommodate ships up to 60,000 DWT, reinforcing the province’s trade role.
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The province offers a wide array of targeted investment incentives, contributing to its attractiveness for foreign direct investment.
Challenges persist. Land rents are increasing as industrial zones approach capacity, and bureaucratic delays remain an issue. Most manufacturing projects use basic technology, and calls for more high-tech production are growing. Many workers commute from Ho Chi Minh City, creating logistical difficulties.
Officials believe the Long Thanh airport will encourage urban development, including shopping centers and entertainment venues, to retain talent.
Dong Nai’s gross regional domestic product reached VND 214.37 trillion (US$9.2 billion) in 2021. Industry and construction grew by 3.21 percent despite pandemic disruptions.
With its infrastructure, incentives, and location, the province is set to remain a key part of Vietnam’s southern economic region. Its ability to advance beyond manufacturing while maintaining cost advantages will shape its future.
As foreign investment continues to flow into Vietnam, Dong Nai’s role in high-tech production could expand further.
